How to Apply for an Alien Landholding License on Anguilla
By Lisa Bass, or Summit Chambers, Anguilla
Anguilla has become one of the world’s premiere tourism destinations. The character and stability of the island has made it attractive for those persons interested in making a solid real estate investment in a place where they could comfortably build a holiday or retirement haven. Because of its attractiveness to persons of wide-ranging financial capabilities, Anguilla’s tourism landscape boasts a colourful menu of small picturesque villas as well as ultra-sophisticated resorts for the more discriminating traveller.
Due to the quality of accommodation available, the superior guest services and the beautiful beaches, there has been a run on owning real estate on the island. After selecting one’s property of choice and entering into a binding agreement with its’ registered proprietor, applying for an Alien Land Holding Licence is a necessary step for non-Anguillians who wish to own property in Anguilla. A summary of the process involved in applying for an Alien Land Holding Licence follows.
Procedure:
RESIDENTIAL/COMMERCIAL
If a prospective purchaser wishes to acquire a plot of land in order to build residential premises or to develop a tourism project, it is necessary to get outline planning approval from the Physical Planning Department. After the drawings have been submitted to the Planning Department, the confirmation process may take about 3 weeks.
Whilst one is awaiting the outline planning approval, the Alien Land Holding Licence application form should be completed in duplicate and signed by the would-be purchasers. The supporting documents to the application should also be compiled, they include:
· A Bank reference letter
· A Police reference letter from all the territories of residence over the past 7 years
· Personal reference letter from a public figure who has known the purchaser for at least 7 years.
· Copy of passport details page
· Tax clearance forms from the Government of Anguilla for both the Vendor and Purchaser
· 4 Passport sized pictures of the purchaser
When outline planning approval has been granted, the application and supporting documents along with the Planning approval decision notice and a location map of the property may be submitted to the Lands and Survey Department. An application fee of EC$1000 is also payable to the Government of Anguilla at the time of submission of the documents.
If the Licence is granted, stamp duty on the Licence (12.5% of the purchase price) and transfer tax (5% of the purchase price) are made payable to the Government of Anguilla. In some circumstances the stamp duty may be waived. However, the waiver is made under very specific circumstances to Caribbean Nationals who have been living on Anguilla for over seven (7) years. A deposit of 10% of the purchase price is also made payable to the Government of Anguilla if the property being purchased is a vacant lot. This deposit can be forfeited by a would-be proprietor if the construction of the home is not completed within the time prescribed. For a residential home, an 18 month time frame is usually designated, larger projects can apply for a long time period such as 24-30 months. Time begins to run from date of grant of the Licence.
ADDITIONAL REQUIREMENTS FOR COMMERCIAL PROPERTY:
If the prospective purchaser wishes to buy property to develop a tourism project, a business plan speaking comprehensively to the proposed development should also be submitted with the application.
If the prospective purchaser is a company, separate application forms should be completed by each of the Directors of the Company. The Company’s Certificate and Articles of incorporation, the Company By-laws and a Statement of Fact provided by the Companies’ Registry in Anguilla at a fee of US$150 must accompany the application.
Lisa M Bass is an Attorney-at-Law on Anguilla. She may be found at Summit Chambers, Caribbean Commercial Centre in The Valley at Telephone No: (264)497-5905; Fax No: (264) 497-3057 Email: summitchambers@anguillanet.com