Buying Property in Jamaica as a Foreigner

Buying Property in Jamaica as a Foreigner

We have written several articles on how to purchase real estate in Jamaica. However, this article will deal particularly with buying property in Jamaica as a foreigner.  To become more acquainted with buying property in Jamaica generally, you can click here .

Do I Need A  TRN  When Buying Property in Jamaica As A foreigner

Anyone wishing to do business with any government entity in Jamaica must have a tax registration number (TRN). Buying property in Jamaica as a foreigner requires doing “business” with government entities. Therefore,  buying property in Jamaica as a foreigner requires the foreign buyer to obtain a valid TRN.

How to Obtain a TRN When Buying Property in Jamaica As a Foreigner 

Obtaining a TRN is quite easy. You will need to visit any  Tax Office in Jamaica with a valid form of Identification. This may be in the form of your driver’s licence or passport. You will be required to complete a form. Details such as full name, date of birth and place of residence are required to complete the form. Upon completion of the form, you will get a slip of paper with a nine-digit number which is your TRN. The application is a same day process.

If you will not be coming to Jamaica until the sale is completed, you can complete the application process online here . If the process is too complicated for you, you may ask your attorney to apply on your behalf.  Most real estate attorneys have experience in applying for TRN for overseas clients.

If your real estate attorney is applying for the TRN on your behalf, he will need a letter of authority from you. The letter of authority would grant the attorney permission to make the application on your behalf. This letter must be notarized by a Notary Public. If it is not notarized, then it will not be accepted. You are also required to copy the first two pages of your passport and have a notary public sign the photocopies as a true copy of the original.

Buying Property in Jamaica As A Foreigner -Where to Buy    

When buying property in Jamaica as a foreigner, most people tend to go to the North of the island. They take particular interest in parishes such as St. Ann and Trewlany.  Manchester is a favourite for returning residents, mainly because it is cooler and relatively safe compared to other parishes. If you prefer to live in the urban area, there are really beautiful luxurious apartments overlooking the Caribbean Sea near the oceanfront in downtown. For a look at what is currently available, you may visit local real estate websites. This can be very helpful.  An excellent real estate agent can help you to find a property that will meet your needs.

What you should know about buying Apartments vs Houses

When buying property in Jamaica as a foreigner,  one must also consider the type of property they wish to purchase. This is important because most apartments fall under The Registration of Strata Titles Act.  When a property falls under this piece of legislation, you will have equal rights in the common areas along with all the other residents in the complex. Common areas include areas such as swimming pools, tennis court and playgrounds.  You are also required to pay a monthly fee, known as a maintenance fee, to help with the upkeep of the common areas. If maintenance fees are not paid you run the risk of losing your unit. It is important, therefore, to inquire about the cost of maintenance when purchasing apartments. You should also note that some townhouses fall under the same legislation and as such the same rules apply.

On the other hand, the greatest advantage of buying a strata property is the price. You can potentially get a lot more amenities such as swimming pool, tennis court etc for a lot cheaper than buying a house with the same amenities.

Time

Real estate transactions in Jamaica can take a really long time compared to most first world countries.  It typically takes 90-120 days to close a real estate transaction in Jamaica when the purchaser is using a mortgage to finance the purchase.

Cash sales, on the other hand, can take from 38 days to 60 days.  Foreigners buying properties in Jamaica can become very frustrated with these time frames. However, the biggest contributor to this long period is the Stamp Office. The contract for sale has to be stamped and stamp duty and transfer tax are required to be paid. The transfer tax, in particular, is assessed based on the value of the property.  This means that a field visit is required and a valuator is sent out to do their independent assessment of the property.  This is to ensure that the government is getting its fair share of transfer tax.

Cost

The cost to do a real estate transaction in Jamaica is about 5.5% of the purchase price of the property. This does not include the cost for valuation report and surveyor’s report. There is also usually an additional $58,250 for the cost to prepare the agreement for sale. 3.25% can be broken down as follows:

1. Stamp duty $2,500 (JMD)
2. Attorneys fee 3%
3. Registration fee payable to the National Land Agency 0.25%

Finally, buying property in Jamaica as a foreigner can be a bit complicated if you have no guidance. Please do your research. If you have any questions please feel free to use our live chat for a free consultation.

Select a Good and Honest Real Estate Lawyer 

The truth is buying a property in Jamaica as a foreigner comes with a few disadvantages. The most common is that a lot of people will try to cheat you. They assume you are ignorant and wealthy and as such, they will try to get as much out of you as possible. You avoid being cheated by hiring a competent and honest real estate lawyer. Do your research. You can start by searching for real estate lawyers in Jamaica, review their profile and make a few phone calls.

Do I need A real estate Lawyer?

The law does not require anyone at any point to have a lawyer. However, it is always within your best interest to seek independent legal advice especially if you will be doing the transaction from overseas. Your lawyer’s duty is to ensure that the contract that you sign is within your best interest.

If you are a foreigner buying property in Jamaica, you can use our free chat for a free live consultation. If no one is available for a free chat we will respond within 12 hours, please leave us a message.

DISCLAIMER:

The contents of this article are for informational purposes only, and must not be relied upon as an alternative to legal advice from your attorney.