Anguilla Props Up Housing Sector In This Year's Budget
by Mike Godfrey, Lowtax.net, Washington
14 December, 2016
Anguilla's Minister of Finance, Victor Banks, has set out a Budget that imposes no new taxes in 2017 and cuts stamp duty and import duty to support the real estate and construction sectors.
From January 1, 2017, island residents with "Belongers" status will benefit from a halving in stamp duty on transfers from five percent to 2.5 percent. This reduction will remain in effect for three years.
The Government will also reduce applicable stamp duty on built developments from 12.5 percent to 5 percent and 6.25 percent for vacant land. This reduction will remain in effect for two years.
Foreigners, or "Non-Belongers", who purchase property in Anguilla will be granted an 11-month visitor's stamp at the time of payment of the Alien Land Holding License fee, to be renewed for the same term on an annual basis. An Alien Land Holding License must be obtained before a foreigner can buy property on the island.
A reduction in the import duty payable on construction materials is proposed in the Budget to increase the affordability of home ownership in Anguilla and to generate activity in the construction sector. The Ministry of Finance is currently designing a scheme to ensure that local businesses benefit. The scheme is expected to be finalized by the first quarter 2017.
Minister Banks announced that Anguilla's Government has made requests for further assistance from the UK Government to develop a Beneficial Ownership System to track the underlying ownership of companies and other entities on the island. This system is intended to assist the UK's law enforcement and tax authorities to obtain information for the purposes of enforcing tax compliance and money laundering rules.
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