No Government permission or licence is required, to buy TCI real estate, but ownership of itself does not provide residence, work rights, or other status in TCI.
The island of Providenciales (known locally as "Provo") is the focus of most TCI investment and economic activity. There is no exchange control and the local currency is the US dollar.
Usual tourist immigration terms and conditions apply unless you are a Belonger, Permanent Residence Certificate ("PRC") holder, Residence Permit holder, or Work Permit holder.
Belonger status is available to those born/adopted in TCI, with at least one Belonger parent, or those married to a Belonger for ten years, or more.
Certain investors may obtain a lifetime PRC, on proof of satisfactory financial resources, health and references. There is a one-time-only Government PRC fee of $25,000.00 (of which $1,500.00 is non-refundable, in the event of refusal). Additionally there is a $200.00 Government fee for a spouse and each dependent child named on the PRC. These fees are additional to making one of the four investment types described below:
- investment in Grand Turk, Salt Cay, South Caicos, Middle Caicos or North Caicos of not less than $300,000 for construction of a new home, or renovation of a distressed property as a home for the applicant and the applicant's dependents; or
- investment in any of the other islands (including the main island of Providenciales) of not less than $1,000,000 in construction of a new home, or renovation of a distressed property as a home for the applicant and the applicant's dependents; or
- investment in Grand Turk, Salt Cay, South Caicos, Middle Caicos or North Caicos of not less than $750,000 in cash, in a business or enterprise in which not less than 60% of employees do not require work permits; or
- investment in any of the other islands (including the main island of Providenciales) of not less than $1,500,000 in cash, in a business or enterprise in which not less than 60% of employees do not require work permits.
Investment evidence is required before a PRC is issued. There is no right to work with a PRC granted under items (a) or (b) above. A right to work under a PRC granted under items (c) or (d) is limited to the relevant business or enterprise.
As with all Government applications, timing and success is unpredictable. Creation of jobs for Belongers is very desirable. Carefully investigate if a proposed business or enterprise is likely to attract Belongers, as employees.
Construction of a home may be a less expensive and logistically easier route to a PRC, but no working is permitted, without a separately applied for Work Permit.
Residence Permits last from one to three years, but may be less desirable, in view of cost and time taken to obtain. Residence Permits do not include a right to work.
Typically, many TCI real estate owners are satisfied to visit as tourists for up to 30 days, with an extension to 90 days possible. If a long stay is required, easily visit as a tourist and fly to say Miami for retail therapy, before the permitted landing period expires. Then return as a tourist, for a further stay up to expiry of a renewed landing period. A tourist should have a flight ticket (electronic or paper), for departure from TCI, at all times. There are many daily commercial flights to and from North America, especially Miami at just over one hour away.
Working in TCI is not permitted unless a Belonger, a PRC holder with appropriate endorsement, or a Work Permit holder. Employers typically apply for a Work Permit on behalf of an employee/potential employee. A Work Permit allows for residency in TCI during the validity period of the Work Permit. Spouses and dependents may be named on the Work Permit, permitting residency.
Certain trades and professions are reserved for Belongers; for other positions, a Work Permit may be granted, if there is no suitable Belonger.
Any TCI business must have an annual Business Licence to operate. Business Licences are restricted for certain activities reserved to Belonger businesses. For example, real estate agency and property management are reserved for Belonger businesses.
In the case of a partnership owned by Belongers and non-Belongers, the partnership is a Belonger business, if Belongers receive more than half of the profits.
In the case of a company owned by Belongers and non-Belongers, the company is a Belonger business, if Belongers have beneficial ownership of the majority of the shares or stock in the company entitled to vote in a general meeting.
Except for a 12 per cent Government tax on rentals and for stamp duty (transfer tax) at up to 10 per cent of consideration, there are no other real estate taxes in TCI. There is no income tax, capital gains tax or inheritance tax in TCI.
This information speaks of its date (8 July 2015), but do not use this article as a substitute for professional legal advice. Before proceeding with any real estate or other transaction, you are advised to instruct an attorney.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
