On the transfer of a property title, a Stamp Duty at the rate of 12% of the price or appraised value is payable by the transferee (purchaser). A Land Tax at the rate of $50.00 is due annually for any acreage under a half of an acre. $150.00 is charged for the first half an acre to one acre and $50.00 for any additional acreage thereafter. House Tax is also levied annually at the rate of 1% of the assessed annual rental value. In practice, annual taxes for an average two or three bedroom house will generally be less than $500.
Income Tax
For homeowners who are not ordinarily resident in the BVI, only income arising in the BVI (such as holiday rental income) will be taxable in the BVI. The tax is levied on a sliding scale of between 0% and 20%.
Taxation
There is no income, corporate or personal tax in the BVI. In addition, there is no withholding tax, sales tax, value added tax, capital gains tax, capital transfer tax, estate duty, inheritance tax, or succession tax. Every employer who carries on business in the BVI is charged a payroll tax. When land is purchased, the purchaser pays a one time Stamp Duty of 12% of the price or the appraised value of the land in addition to a yearly Land and House Tax.
The BVI has a favorable tax regime with the U.S. Dollar being the local tender. The Government levies corporate tax at 15% and personal income tax on a sliding scale to a maximum of 20%. Apart from the low level of personal taxes there are no capital gains, estate, inheritance, succession or gift taxes levied under existing legislation.
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