Buying Property in Jamaica

If you are in the market to purchase property in the Caribbean, Jamaica is known for its pristine beaches, friendly people, and healthy real estate market. It seems obvious why, as Jamaica hosted approximately 2.5 million visitors in the last year and continues to maintain its status as the most diverse island in the Caribbean. Luxury property development is one of the main attractors to new property owners, as the price per square foot is comparatively cheaper than in other Caribbean countries. If you are looking for your new home or would like to purchase a vacation property in Jamaica, there are several considerations one must make before diving head first into this vibrant market.

Who May Purchase Property in Jamaica?

One of the greatest benefits of property ownership in Jamaica is that both Jamaican citizens and foreign investors have the same rights in enjoying property ownership. This makes the process fairly straightforward even if you are overseas. 

Purchasing property in Jamaica is not very different from other North American and European countries, with the exception of requiring a lawyer to assist with the process. Although hiring a real estate agent may be helpful in finding properties that suit your needs, legal counsel can ensure that you are getting the best possible agreement when the time comes. 

Finding the Property

To begin your real estate journey, use online searches to find a property search. Visiting properties in person is always ideal, however, if it is not possible, a lawyer or real estate agent may assist with virtual viewings. Once you have found the perfect property, you may make an offer. If your offer has been accepted by the seller, your lawyer will conduct a title search and order a land survey of the property. 

The Purchasing Process

If the property is in good standing, the seller’s attorney will prepare the necessary legal documents. The Agreement for Sale will outline every aspect of the property sale including the date of the property transfer, the interested parties, the buyer’s method of payment, special conditions, as well as the Tax Registration Number (TRN) from the seller or purchaser. If you live abroad and do not have a TRN, you may register for one online, if necessary. 

At this point, a good lawyer will examine the agreement thoroughly and complete the necessary sections on your behalf. You will be required to pay a deposit and then the balance by a specified completion date, depending on the transaction. If a mortgage is involved, your attorney will also liaise with the bank or lending institution.

Taxes and Fees

No matter where you reside, taxes and fees are an inevitable part of the process. In Jamaica, there are registration fees, lawyer fees, property taxes, as well as “Stamp Duty'' and “Transfer Tax.” Stamp Duty is a flat rate of $5,000.00 JMD, which is split between the buyer and seller and Transfer tax is a payment by the seller to the Commissioner of Stamp Duty which is a percentage of the sale price (currently 2%). Working with an attorney will ensure that you are in full compliance with all the necessary taxes and fees.

If you are interested in purchasing property in Jamaica as a permanent residence, vacation home, or investment property, Ramsay & Partners makes the process of buying a home simple. Contact our firm to schedule a consultation or call (876) 906-2616 today.