Why You Should be Buying Property in the Turks and Caicos Islands

Their low population density and a focus on luxury rather than mass tourism means the Turks and Caicos islands have been able to maintain open borders and attract real estate buyers looking for a second home, or even a primary residence, for both health reasons and wealth preservation.

The Caribbean real estate sector in 2020 faces some serious challenges. But some markets have been attracting increasing interest from investors looking for a safe-haven away from big cities and highly congested lifestyles suffering the effects of lockdowns and social distancing and the risk of infections.

Eager to capitalize on the trend and reduce the economic impact of the Covid-19 pandemic on its residents, the Turks and Caicos Islands earlier in the year introduced a package of economic stimulus benefits for the real estate industry that includes a 50% reduction in stamp duty, waived custom duties on construction materials, and a 50% reduction in planning fees.

Turks and Caicos real estate is a popular buy at the best of times, but the government hopes that the new incentive package will attract plenty of clients looking for a second home in a safe destination away from the potential health risks of highly populated areas and big cities during a pandemic.

The location of the islands is advantageous: they are close to the United States, with direct flights from many US hubs, they are English-speaking, use the US dollar, and follow the British legal system. Low population density, stable government and good infrastructure add to the attraction. Then, of course, is the appeal of the territory’s famous lack of income tax, property tax or capital gains tax.

Along with most other Caribbean island tourist destinations, the Turks and Caicos quickly suspended all cruise line visits as the pandemic began to spread around the world. But its airport remains open and the territory is actively encouraging visitors — particularly potential property buyers and those looking for a long-term stay — to take advantage of its natural beauty and increased seclusion in these times of social distancing.

To travel there, all visitors to the Turks and Caicos are required to obtain pre-travel authorisation via an online portal, TCI Assured, and produce a negative COVID-19 PCR test result. The test must be taken within five days prior to travel to the islands. Travellers must also have insurance which covers COVID-19 medical costs and full hospitalization, doctors’ visits, prescriptions and air ambulance. Authorization takes between 15 minutes and 24 hours.

The Turks and Caicos real estate industry has embraced remote working, which is hardly surprising as most property buyers come from overseas and remote viewing and client-attorney videoconferencing have been commonly used since before Covid-19 arrived on the scene. Typical current listings of Turks and Caicos properties for sale include land, homes and condos in a wide variety of locations and on different islands.

And then there’s residency: Under current circumstances, residency has become an even more important topic, as potential property buyers mull the possibility of a long-term move to Turks and Caicos during extended self-isolation periods in their home country.

The simplest route to residency is a homeowner’s permit, renewable and valid for five years, that allows the holder to come and go as they please. The permit is conditional on the purchase of a house or condo valued over $300,000. Applicants can include their spouse and children under 18 on the permit, must have a clean criminal record and have enough income or assets to be able to live in the Islands without having to work.

The second type of status requires the purchase of real estate over $1 million. This entitles the holder to a Permanent Residence Certificate (PRC). A PRC grants the applicant and their spouse the right to reside in the Turks and Caicos Islands for life. Children under 18 have the right to residency until their 18th birthday.

The combination of the safety and tranquility of the islands, together with the unrestricted right of foreigners to purchase property and have residency opens up an ideal safe haven that is also a great investment, close to the US and Canada and accessible to the world.