When you purchase property in the BVI you are required to pay a stamp duty at the point of transfer. This is currently 4% if you a BVI Belonger or 12% if you are not from the BVI. This is on the sales value or the appraised value whichever is the higher.
However, once you own property the only taxes due thereafter are an annual property tax. These are extremely low compared to many other jurisdictions.

The Two Types of Annual Property Tax

The definition of the word “house” in this context and determined by the related legislation includes any kind of building and/or structure.  Property owners should therefore not fall under the mistaken belief that property tax applies in respect of residential properties only.

How Property Tax is Calculated

This sum owed is determined by what you own, the size of what you own and your status.  If you a BVI citizen, you will pay a lower rate of tax than if you are passport holder for a country outside of the BVI (also referred to as a Non Belonger). 

Land Rates:

Please note there is no distinction between a belonger or non belonger if leasing land from the Crown.  Where an individual holds land under a lease from the Crown with a term of a year or longer, the land is taxed at the rate applicable to a British Virgin Islander, irrespective of whether the lessee is a British Virgin Islander or an expatriate.  Most land in the BVI is freehold but larger estates on Virgin Gorda are leased from the Crown as are sections of some outer islands.

Homes/Property/Structure Rates:

This is calculated at circa the rate of one and a half percent per annum on the notional annual value of the building in question. The notional annual value is an amount, not in excess of the rent, which the building might reasonably be expected to yield from year to year. The element of property tax attributable to land is calculated at differing rates, determined by whether the land in question is owned by a British Virgin Islander, or an expatriate.
The Inland Revenue Commissioner assesses all property in the BVI liable to the payment of property tax annually and prepares an assessment list which includes the names of property owners and the amount of property tax due in any given year. Although each property is assessed individually most properties on average command a payment of between $800.00 – $1,500.00 per annum.

Payments & Penalties

Please note this is the last boarding call for all BVI property owner as the cut off for 2024 payments is the 30th of November 2024!!
Inland Revenue publish the taxes due by each property owner. They do not send out an invoice or reminders to pay so the land and/or property owner must make a note in their diary to pay this once a year. The tax itself is not payable until the end of each year. The list of what is owed by each property owner is published on or near the 1st September of each year. Payments can be made from the 1st September through until the 30th November for that calendar year.
Payments made after that date will be subject to a late payment penalty. This is calculated at a rate of 20% on the amount payable. If this is unpaid then this is added to the next years payment and a further 20% of the total sum owed would be applied again if it remains unpaid. Although the sums charged each year are nominal if they go unpaid they can soon become a much more significant obligation to settle. It is also worth noting that if you have listed your property for sale and/or are currently under contract you cannot close on the sale until all taxes are paid and up to date.
There are only a few days left to settle the bills for 2024. If you own property in the BVI and are unsure how to make a payment or how to find out what you owe, please refer to the link below to see what has been applied to each property. Payment are made to the Inland Revenue directly.
BVI Inland Revenue Property Tax Assessment 2024 | Government of the Virgin Islands

Always feel free to contact Red Coral for advice and support.  We manage a portfolio of properties and we pay this tax on behalf of our clients and are always happy to help in any way we can.