Taxation

What property duties and other costs are involved with the purchase of Real Estate in Tobago?

Stamp Duty on Conveyance of Real Estate

1. Residential

Residential property conveyances bear stamp duty at the following rates: -

2. Real Estate Taxes

Real estate taxes (rates) are levied by local authorities on the assessed value of property located within their administrative areas. Undeveloped land is taxed at $20 per acre and buildings at 7 1/2% of the estimated rental value with a minimum of $48.00 (known as the Annual Rateable Value). There are also water and sewerage charges based on the assessed annual rateable value or meterage.

Is VAT payable on property and if so at what rate?

No.

Can I import furniture into Tobago duty free?

Under the Tourism Act 2000 and subject to GOTT's approval of Tobago Plantations as an Integrated Resort Development, applications are made to the Ministry of Trade and Industry via TIDCO for the granting of such a concession. Approval for duty exempt is based on owner participation in TPL's Rental programme and consignment of FF& E through TPL.

Is there capital gains tax payable on selling the property?

Vat becomes payable by the current owner (the seller) on change of ownership.

Are there any Estate Duties in Tobago?

No.

Is it worthwhile buying the property through an offshore company?

Yes, as the transaction would be exempt from stamp duty and taxes on capital gains..

What Income tax rates are applicable to individuals?

Rules regarding returns, assessments, appeals, and collection of tax are much the same as for companies. Tax is withheld from employees' pay under the PAYE scheme under Withholding Taxes, while self-employed persons must pay tax in advance in quarterly instalments. For all individuals, however, any balance of tax due must be paid by 30 April following the year of income. The highest tax bracket for personal income is 33%.