Buying property in the BVI

The British Virgin Islands possess some of the most stunning places to live in the world. Whether you prefer a mountain-top villa with panoramic views of the English Channel or a seaside estate steps away from the beach, the British Virgin Islands offer a fantasy lifestyle that you’re unlikely to find elsewhere. Virgin Islands Collection can help you navigate the ins and outs of buying in the BVI.

Purchasing a property in the BVI is completely different from other territories or countries, so learning the rules and requirements is key to securing your new home. The first step is to get a feel for the different bays, beaches, mountains, and neighborhoods of the BVI. Location is as important here as anywhere else in the world, and details such as beach access, wind direction, driving terrain, tree cover, and marina proximity may affect your decision. One of the many trustworthy real estate agents in the BVI can help you with your search. Ask them about the advantages each specific location has to offer.

Once you have found your dream home for sale in your ideal neighborhood, you, the buyer (through your lawyers or real estate agent), should issue a letter of intent to the seller along with a 10% deposit that goes into an interest-bearing escrow account by the seller’s real estate agent or lawyers. The sellers are required to advertise the property for four consecutive weeks in a local newspaper in order to give Belongers (citizens) first opportunity to buy the property at the advertised price.

The next step is for the buyer and seller to enter into a sale and purchase agreement, typically prepared by the seller’s lawyers then approved by the buyer’s lawyers. Like purchase agreements elsewhere, it has conditions relating to inspections, surveys, financing, permits, licenses, reports, etc. The sale agreement is a legally binding contract.

For Non-Belongers (those without BVI citizenship) who want to buy property in the BVI, a Non-Belongers Land Holding Licence is required. A Non-Belonger can’t purchase property without this license, so one of the conditions of the sale agreement will be whether or not the buyer obtains the licence. The Non-Belongers Land Holding Licence (NBLHL) gives a Non-Belonger the right to own only a specific property. The process to apply for an NBLHL can take a few months, and the sale agreement should allow for up to 12 months for this to take place.

In addition to the completed NBLHL application form, the buyer will need to provide the following supporting documents: a copy of the buyer’s passport biography page, two character references, two personal references indicating the applicant’s ability to purchase the land (preferable from the buyer’s current bank, employer, or auditor), one financial statement for the past year, one police certificate, one passport-sized photo each of the vendor and buyer, copies of the four newspaper clippings of the advertisement of the sale including dates of publication and property price, a letter-sized version of the cadastral survey map, a copy of the seller’s notarized birth certificate or naturalization certificate (if the seller is a Belonger), copy of the record to reflect land ownership of the property, copy of the sale agreement, copy of the Registered Licence, copy of the Transfer document, proof of input from an architect or planner, a certified copy of a valuation report of the property, a copy of the Asbuilt Survey, and other additional documents as applicable to special cases. The application form is submitted to the Ministry of Natural Resources, Labour and Immigration along with a $200 fee.

After they have acknowledged receipt of the application and fee, the Ministry will review the application then send the applicant or the applicant’s representative a notice granting or denying the request. If approved, the applicant, or their representative, must submit necessary documents for further processing to the Ministry in order to secure the Licence and to transfer the property from the seller to the buyer.

Once the NBLHL is secured and the Ministry is satisfied, the buyer’s lawyers will present the Transfer Document to Inland Revenue for payment of stamp duty which is 12% of either the purchase price or market property value based on a recent appraisal (whichever is higher).

Once stamp duty has been paid, your lawyers will submit the Transfer to the Land Registry for registration. You are not required to be in attendance in the BVI for the completion of the sale and may attend virtually. You have now completed all the steps to own a home in the British Virgin Islands!