USVI Stamp Tax
Are you interested in relocating to the beautiful U.S. Virgin Islands? With the vastness of splendid nature and pristine beaches, the USVIs offer a wonderful selection of real estate that will make it easy to find the right home for you and your loved ones on the islands. If you’re looking to purchase a home on one of the U.S. Virgin Islands, don’t hesitate to contact Christie’s International Real Estate – the Saints with all of your real estate needs.
Generally, in real estate dealings, there is always some type of payment to be made so that the deed can be properly recorded. This payment usually includes stamp taxes, payment for the recording of the deed, and the mortgage fees, among others. In this article, we will cover the real estate transfer tax, which will hopefully help you with your future real estate deals.
So, first things first, a stamp tax is the tax that is put on by the state or the local jurisdiction for the privilege of transferring real estate property between parties in that particular jurisdiction. The properties involved largely include residential homes, commercial properties, and industrial properties.
Stamp taxes are always included when transferring properties between individuals or companies. The United States stamp tax also applies for the Virgin Islands, that is, St. John, St. Thomas, St. Croix and Water Island. The properties in this part of the U.S. are covered legally by the national stamp tax rules, hence the USVI stamp tax is just like any other state.
The USVI stamp tax works such that higher-value properties have a slightly higher percentage tax than their less expensive counterparts. Here is the breakdown of the ranges of the stamp tax as from 2015:
- 2% for property worth up to $350,000.
- 2.5% for property worth $350,000 to 1 million.
- 3% for property worth $1 million to $5 million.
- 3.5% for property worth over $5 million.
As mentioned above, the payment made for the recording of the deed includes the mortgage fees, which is mostly the responsibility of the person selling the property, while the recording fee is usually the responsibility of the buyer. The stamp tax can cause logistical problems, as it is no one’s responsibility in particular to pay, and can be paid by either the buyer or the seller of the property or can be split by both parties. That is why it is important to consult an attorney before agreeing to a contract of sale concerning properties in US Virgin Islands.
If you are wondering where the stamp tax money goes, it is largely used to finance proper housing for low-income households in both the Virgin Islands and the U.S. Contact Christie’s International Real Estate – the Saints to learn more about real estate in the U.S. Virgin Islands.