What additional expenses should I anticipate when investing in property in Antigua?

When considering property investment in Antigua, it's essential to look beyond the initial property price and anticipate additional expenses that come with the territory. Let's navigate through the intricacies of these costs to ensure you're well-prepared for your investment journey.

1. Income Tax on Rental Income: Prepare for a 20% tax on rental income after accounting for expenses. This tax applies to both locals and non-nationals alike.
2. Alien Landholding Licence (ALHL): As a non-national buyer, securing this license is mandatory and typically incurs a charge of at least 5% of the property's value.
3. Legal Fees: Set aside a portion of your budget, approximately 2% of the property's value, to cover legal expenses. These fees encompass various aspects, including registration and land certificate charges.
4. Stamp Duty: Both buyers and sellers contribute to stamp duty, amounting to around 10% of the property's value. Buyers typically cover 2.5% towards transfer charges, while sellers pay the remaining 7.5%.
5. Commission Fees: Should you engage the services of real estate agents or attorneys, be prepared to incur commission fees ranging from 5% to 7% of the purchase price. These professionals play a pivotal role in guiding you through the purchase process.
6. Governmental Tax on Loans: If opting for financing through local institutions, expect to pay a 3% governmental tax on loans.
7. Real Estate Agent Management: For those considering leasing out their property, the expertise of a trusted real estate agent is invaluable. These professionals typically charge 10% to 20% of rental income for property management services.

Understanding and budgeting for these additional expenses are paramount for making informed investment decisions in Antigua. As seasoned experts in the local real estate market, we highly recommend partnering with reputable professionals like Park Lane Property. Their unrivaled expertise and personalized service ensure a seamless property purchase process, allowing you to secure your perfect piece of paradise stress-free. Reach out to them today to embark on your investment journey with confidence.