Steps to Buy Property in the BVI

Steps to buying BVI property

Foreign investors can own property in the British Virgin Islands (BVI)—but the process is regulated and involves several key approvals. Here’s a clear breakdown:

Step 1: Find a Property & Submit a Letter of Intent

• Choose a property you wish to buy.
• Submit earnest money (typically 10%) and a Letter of Intent (LOI) outlining your offer price, terms, and any contingencies.
• Note: The LOI is non-binding and used for negotiation. A formal Sale & Purchase Agreement (SPA) will follow.

Step 2: Engage a BVI Attorney

• Work with a local real estate agent or BVI-based lawyer—foreign attorneys often lack jurisdictional knowledge.
• Your attorney will assist with contract reviews, government filings, and due diligence.

Step 3: Advertise Locally

• Buyers must advertise the property for 4 weeks in local newspapers and online to prove no Belonger is interested.

Step 4: Sign the Sale & Purchase Agreement

• Once terms are finalized, both parties sign a binding SPA.
• Conduct due diligence (property title, valuations, liens, etc.).

Step 5: Apply for the Non-Belongers Land Holding License (NBLHL)

• Submit the NBLHL application with:
  
  • Property appraisal
  • Sales agreement
  • Character and financial references
• Application fee: $200 (usually within attorney’s fees)
• License fee if granted: $600
• Approval timeline: ~5–6 months

Step 6: Complete the Sale

• Pay the seller the balance (minus earnest money) once the license is granted.
• Stamp Duty:
  
  • Non-Belongers: 12% of higher value (sale price or appraisal)
  • Belongers: 4%
  • Leasehold: 1.5% + 20 years’ rent (Non-Belongers), 1% + 20 years’ rent (Belongers)

Bonus Info:

• Presence not required: Buyers or sellers do not need to be physically in the BVI.
• Residency: Property ownership does not grant permanent residency, but allows for up to 6 months/year stay.
• Each NBLHL is property-specific: Buying another property requires a separate license.

Building a Home as a Non-Belonger

• You can buy land and build, with local architects and contractors.
• Construction timeline: 9–18 months
• Estimated costs:
  
  • $250–$300/sq ft for standard homes
  • Up to $500–$600/sq ft for luxury builds
  • Pool: $60,000–$80,000
• Stamp duty only applies to the land’s value, not the construction.

Legal & Financing Details

• Legal system: Based on British Common Law
• Most land is “fee simple” (freehold)
• Attorney fees: 1.5%–2% of sale price
• Mortgages: Up to 90% of appraised value; 30-year terms available
• Currency: USD
• Interest rates: ~1.5% above New York Prime

Taxes

• Land tax:
  
  • $50/year (under 0.5 acre)
  • $150 + $50/acre (over 1 acre)
• House tax: 1.5% of assessed annual rental value
  
  • Typically under $1,000/year for 2–3 bedroom homes

Who Qualifies as a Belonger?

A Belonger is someone who:

• Was born to a parent who is a BVI citizen
• Or has been naturalized A company can be considered Non-Belonger if incorporated abroad or has 33%+ foreign ownership.

Final Tip

Working with an Emerald Properties BVI Agent and attorney ensures a smooth process and protects you from common legal pitfalls.