The Jamaican government has significantly reduced the taxes associated with transferring real property in 2019. This amendment opened the market to investors all around.
The taxes associated with transferring real estate in Jamaica is Transfer Tax, Stamp duty, and Registration fee. Transfer tax which was previously at 5%, is now down to 2% of the sale price. This amount is paid solely by the Vendor (seller). On the other hand, Stamp duty was 4% and split equally between the buyer and seller. Stamp duty has now been drastically reduced to a flat fee of JMD 5,000 (USD 40), split between the vendor and purchaser. The Registration fee remains at 0.5% of the sale price and is also split between the buyer and seller.
In addition to the tax reductions, sale deposits of 10% can now be negotiated between the buyer and the seller. A sale deposit is a guaranteed amount that the buyer pays to show the intention to execute a sale.
This decision by the Jamaican government has made real estate more affordable to acquire and profitable for local and international investors. This is a huge economic benefit and opportunity that everyone should understand.
If you are considering investing in Jamaica’s property market but unsure of the costs associated with sale completion. Here is an example of an estimated statement of account if you were to buy and sell property in Jamaica for JMD 15,000,000.00 (USD 101,351.00).