Real Estate Investment in St Lucia set to Boom

Tuesday, September 1, 2009


Real Estate Investment in St Lucia set to Boom

Demand for property in St Lucia is set to skyrocket following news that new direct flights from both the UK and the USA are set to take off from October this year - making access to the Caribbean island far quicker and easier - and when coupled with the country's tax holiday on rental income, St Lucia is looking a solid bet for investors and holidaymakers alike...

In a bid to attract more tourists to the island, the St Lucia Government has introduced a new rental income tax holiday which will help international investors who have purchased holiday properties which they let out.

The banana trade in St Lucia has declined rapidly of late, so the island has had to look for new ways to boost the economy - and this tax holiday looks set to boost interest in buying second homes and investment properties.

Any country that offers special tax rates or incentives at the moment will be especially popular with those in the higher tax bands here in the UK, as the rate of tax has risen to a whopping 50 per cent.

Alongside St Lucia's tax break, there is also no VAT on property on the island, no capital gains tax and no inheritance tax.

Improved access to a country will always boost its property market and increase the number of visitors holidaying there. St Lucia is about to benefit from new direct flights from the UK, as British Airways has announced that it is increasing its direct flights to the island from three to five times a week as of October this year.

There is also to be a new service from Frankfurt, operated by Condor from 1st November this year.

Across the pond in America, Jet Blue has announced a new service from New York to St Lucia with three weekly flights from 26th October this year.

And that's not all for St Lucia. International investors who inject more than £213,000 into a property on the island could become a resident under new immigration laws that are currently being decided upon. Being a resident will bring other tax benefits for foreigners.

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