The island of Jamaica is a beautiful gem in the Caribbean that is ripe for many things such as real estate investments. As a foreigner, it is possible to acquire real estate in one of the Caribbean's jewels following the nuggets of legal advise as set out in this article.any stumbling blocks on the way to own a home in Jamaica.
The market is open to anyone. Foreigners are qualified to purchase property in Jamaica with no confinements. The procedure starts when the purchaser makes an offer to buy real estate. All you need to buy property is a TRN (Taxpayer Registration Number) and a lot of money of course. The reason why you need a TRN is that you will have to pay an annual property tax.
Property Taxes in Jamaica
TAJ (Tax Administration Jamaica) and since April 1st, 2019, all properties with an unimproved value up to J$ 100,000 will be charged a flat rate of J$ 1,000 (US$ 7.35) per annum. Properties with values exceeding J$100,000 up to J$ 1 million will attract an additional 1.5 % for every additional dollar above J$ 100,000. Properties with values exceeding J$ 1 million will attract an additional 2.0 % for every additional dollar. Compared to other countries, the Jamaican property tax is in fact very low.
->Acquiring a Tax Registration Number if one lives overseas
Everyone can apply for a TRN number. The process to get a TRN is very simple. Visit the TAJ website, download the form to apply for TRN as an Oversea Individual, fill it out and send it back. Jamaica Tax Administration .
Locating Real Estate to Buy in Jamaica
Most Jamaicans usually buy from someone they know, foreigners usually stick on a Jamaican real estate agent. Commissions are high and up to 5 % of the total price. A real estate agent is not necessary and a good lawyer will suffice.
How to Buy Property in Jamaica as a Foreigner?
As mentioned before, the procedure starts when the purchaser places an offer. When the seller acknowledges it, a land study is done. A title seek is likewise done to check if some other cases exist or if there are clashing interests engaged with the property. After clearing this progression, the purchaser can hold up a provision that limits the enrollment of some other enthusiasm against the specific property, until the exchange procedure has been finished.
Land titles in Jamaica fall under two classifications. Unregistered properties are given a custom-based law title, which can likewise be moved up to an enlisted title. Enlisted titles are legitimate and official. Purchasers are required to get the first title archive of the property from the Office of Land and Titles. This should be possible with the help of a legal advisor.
A deal understanding is then arranged, generally by the vender’s legal counselor, and is marked by purchaser and merchant within the sight of a legal advisor. The consented to arrangement makes the exchange official and authoritative. The purchaser should likewise make a reservation payment, identical to 10 % of the selling price.
How Much are Closing Costs for Buying a House?
Closing costs to finalize a real estate deale are approximately 4.5 % of the total purchasing price. This includes a sales agreement, stamp duty, and registration. If you need a lawyer, then you have to add another 3 % for attorney’s fee. An endorsement from the Bank of Jamaica is essential. Together with a copy of your Passport, you need to prove where your money is coming from. The Exchange Control Department of the Bank of Jamaica must give assent before any buy understandings can be directed.
The whole process, including the application at the Office of the Registrar of Titles, can take up to one month.
The deal is esteemed finished once the exchange of the title happens. On the off chance that you as the purchaser want to take a mortgage, the procedure needs another 3 to 12 months. The whole process of enrolling a property does only take 40 days.
