A Time to Look at Turks and Caicos Real Estate
The Turks and Caicos real estate market have a beach and oceanfront real estate aplenty, all available for sale to individuals internationally.
British Overseas Territories in the Caribbean are renowned for two things: their tax neutral status and their gorgeous tropical setting — with world-famous beaches, watersports, reefs, and marine life. The Turks and Caicos Islands on the Eastern Caribbean tick all these boxes, with so many islands, so many beaches, easy access, and no direct taxation whatsoever.
The two tropical island groups that make up the British Overseas Territory of the Turks and Caicos Islands consist of eight main islands and 22 smaller islands, mostly uninhabited. With strong growth in real estate in the Caribbean in recent years, the Turks and Caicos market has steadily been picking up the pace and all the main islands have beach and oceanfront real estate available for sale internationally, with prices reflected in their desirability and accessibility.
By far the greatest number of residents, some 24,000 people, live in the eponymous town on Providenciales Island in the Caicos archipelago, with nearby North Caicos and South Caicos being home to around 1,000 people each. In the Turk Islands, only Grand Turk has a substantial population (around 4,000), centered on the territory’s capital Cockburn Town.
Providenciales, or Provo, as it’s more commonly known, is the commercial and tourist center of the territory. It is home to the international airport and is renowned for its miles of pristine white-sand beaches and protective reef. Provo is a modern and commercial town and development on the island is relatively new, as it was mostly salt flats just a few decades ago.
Popular Turks and Caicos homes for sale are found among the resorts and luxury condos concentrated around Grace Bay on the eastern edge of the north coast of Provo, where many properties are owned using the ‘condotel’ model. This gives condo owners an opportunity to earn income from renting their property through a resort’s rental management service. There are few detached homes or villas in this area.
Vacant and beachfront properties and land can be found on all eight of the main islands, but most activity is in Provo, where prices reflect demand. Small, one-bedroom apartments inland rent from $1,000 a month upwards, while fancy Grace Bay beachfront properties can be many multiples of that. An inland, one-bedroom condo on resort property in the Turtle Cove area can currently be found for around $210,000.
If money is no object, then the other end of the market, there is an off-plan two-storey penthouse on an upcoming 16.5-acre marina development in Turtle Cove on the Turks Cay beachfront, due to be completed in 2022 and available for a shade under $6 million. Or, for $4.5 million, back on Provo, on the eastern end of Grace Bay, there is a four-suite complex on a half-acre lot specially designed to cater to the large, extended family or group. The property would be a perfect income earner for tourist rentals, as each unit is self-contained and is surrounded by amenities.
A note about beach access: All beaches up to the high tide mark in Turks and Caicos are public access, meaning even those that can only be accessed by land through the private property can still be accessible by anyone from a watercraft. Prospective builders of beachfront property should be aware of possible future access issues.
You do not need residency status to purchase Turks and Caicos real estate and there are no restrictions on foreign individuals owning real estate. However, foreign companies and trusts are not able to own real estate. There is a one-time Stamp Duty on property purchases, varying from 0% for properties valued under $25,000, to 10% for properties valued at more than $500,000. Turks and Caicos use the US dollar as its local currency.
The seller typically pays the realtor’s fee. The local real estate association (TCREA) sets commissions, calculated at 6% for developed properties, and 10% for undeveloped properties.
A Permanent Residency Certificate (PRC) is available with a real estate purchase, depending on the purchase price and depending on the island. When buying a parcel of land, you may be eligible for a PRC, or a 25-year residence permit, or nothing, depending on the purchase price.
Additionally, if you’re looking to retire or live in Turks and Caicos and do not intend to take up local employment, then you can apply for temporary residency or homeowner status with investment, although time spent in the country under such status may not count towards later obtaining a PRC, so be aware of the fine print.
The balmy tropical climate, the pristine beaches, and the marine environment, the lack of income tax, property tax, inheritance tax, or capital gains tax are all compelling reasons to consider the Turks and Caicos as a property investment and lifestyle choice. While the territory is not as developed as some other Caribbean tax-neutral destinations, it does have a unique charm, a stable administration, and a well-managed entry point to property ownership and even residency.
