Anguilla, a British Overseas Territory in the Caribbean, boasts a well-established and attractive real estate market, driven by its stunning beaches, stable economy, and strong legal framework. The island offers a wide variety of properties, from luxurious beachfront estates to more modest inland homes, catering to both local residents and international investors. Anguilla is known for its favourable tax environment, with no income tax, capital gains tax, or inheritance tax, and no annual property tax. This makes it appealing to those seeking second homes, investment opportunities, or retirement properties in a stable jurisdiction.

The real estate market has steadily grown, particularly in the luxury sector, attracting affluent buyers from around the world. To encourage foreign investment, the government requires non-Anguillians to obtain an Aliens Land Holding Licence (ALHL) before purchasing property on the island. This regulation ensures that foreign ownership aligns with local economic interests while maintaining Anguilla’s appeal to international investors.

The main legislation governing real estate ownership in Anguilla includes the Registered Land Act, the Aliens Land Holding Licence (ALHL) regulations, and the Stamp Duty Act.

• The Registered Land Act provides the legal framework for land registration, ensuring that property ownership and interests are clearly recorded and protected.
• The Aliens Land Holding License (ALHL) regulations govern the purchase of property by non-Anguillians.
• The Stamp Duty Act imposes a stamp duty on property transactions.

The Government of Anguilla has made significant changes to the stamp duties payable on property transactions to further stimulate the real estate market, particularly in attracting foreign investment. The following reduced stamp duty rates now apply to foreign purchasers:

• 5% stamp duty (reduced from 12.5%) on the value of developed property for all Alien Land Holding Licensees.
• 25% stamp duty (reduced from 12.5%) on the value of undeveloped property for all Alien Land Holding Licensees.

In addition to these reductions, there is a 5% stamp duty payable on all property transfers, regardless of the purchaser’s status.

When property is transferred or purchased, the transaction is registered with the Land Registry, which serves as the official record of ownership. Ownership is evidenced by a Title Deed, which is issued by the Land Registry and provides proof of legal ownership of the property. The deed contains key details, such as the name of the owner, the description of the property, and any encumbrances (e.g., mortgages or liens) that may apply to the property.

Regarding public access to ownership records, land ownership information in Anguilla is generally available for public inspection, See Reply to Question 4

Yes, there are restrictions on who can own real estate in Anguilla, particularly for foreign nationals or entities.

Foreign Ownership and the Alien Land Holding Licence:

• Foreign individuals and entities (non-Anguillians) are permitted to own real estate in Anguilla, but they must first obtain an Alien Land Holding Licence from the government.
• The ALHL is required for the purchase of both developed and undeveloped property by non-Anguillians. The application process for the licence includes a thorough review of the applicant’s background and the intended use of the property.
• There are no specific restrictions on the types of properties foreigners can own, but the licence ensures that the government can oversee and regulate foreign investment in the island’s real estate market.

Ownership by Foreign Entities:

• Foreign companies and entities can also own property in Anguilla, but they must go through the same process to apply for the Alien Land Holding License.
• Foreign entities must demonstrate that their ownership is consistent with the government’s guidelines and will not adversely impact Anguillian citizens or the local economy.

In Anguilla, the main types of proprietary interests in real estate include freehold ownership, where the owner has full, indefinite rights to the land; leasehold interests, where a person leases land for a specified period; and easements, which grant a right to use another’s land for a specific purpose. Other interests include mortgages, restrictive covenants, joint or tenancy in common ownership, licenses for temporary use, and strata titles for condominiums, where owners hold exclusive rights to their units while sharing ownership of common areas.

In Anguilla, ownership of real estate and the buildings on it is generally not separate, with both land and structures considered a single asset. However, in leasehold ownership, the building may be owned by a party while the land is leased. In certain developments, such as commercial real estate or strata-titled properties, the land and buildings can be owned separately, with the land shared by owners of individual units.

Common structures for ownership of commercial real estate in Anguilla include freehold ownership, leasehold ownership, joint ventures, and strata ownership.

Title Search – Verifying ownership and encumbrances.

ALHL Check – Ensuring compliance with foreign ownership requirements.

Survey and Boundaries – Confirming property boundaries and disputes.

Contract Review – Checking existing agreements like leases or covenants.

Environmental and Planning Checks – Verifying development restrictions.

Tax Verification – Ensuring no outstanding property taxes or fees.

Post-Acquisition Disputes – Conflicts arising after purchase, such as neighbour disputes or title challenges.

Unregistered Interests – Rights or encumbrances not recorded in public registers.

Tax Liabilities – Future tax changes or issues not directly related to the property at the time of acquisition.

Operational or Business Risks – Issues related to running a business from the property, such as permits or licenses not covered by due diligence.

Due Diligence – The buyer conducts legal checks, including title search, ALHL verification, and surveys.

Agreement – Once due diligence is complete, the buyer and seller sign the sale agreement, outlining terms and conditions.

Closing – Once the buyer is approved for the ALHL, both parties agree on a closing date, and the buyer pays the agreed purchase price, often through escrow.

Transfer Documents – A transfer deed is signed by both parties.

Registration – The transfer deed is registered with the Land Registry.

In Anguilla, it is not uncommon for real estate transfers to be effected through share transfer, particularly when the property is owned by a company. This method allows the buyer to acquire the shares of the company that owns the property, rather than directly transferring the property itself. This approach may be used to avoid certain taxes or fees, but it is less common than direct asset transfers.

Yes, on the sale of freehold interests in land in Anguilla, the benefit of any occupational leases and income derived from such lettings typically transfers to the buyer, unless otherwise stated in the sale agreement. The buyer assumes the rights and obligations under the existing leases, including receiving rental income and complying with the lease terms. It is important for the sale agreement to clarify whether such leases are included in the transaction.

Common rights, interests, and burdens that can attach to real estate in Anguilla, such as easements, covenants, mortgages, leases, and liens, are protected through registration with the Land Registry, ensuring their enforceability against future owners.

Yes, split legal and beneficial ownership of real estate, such as in trust structures, is recognized in Anguilla. A trust can be established where one party holds the legal title to the property (the trustee) while another party enjoys the beneficial interest (the beneficiary). This structure is commonly used for estate planning and asset protection purposes.

While public disclosure of ultimate beneficial owners of real estate is not required, entities that own real estate, such as companies, must declare their ultimate beneficial owners to the Companies Registry. This information is not publicly accessible but is held by the Registrar and can be disclosed to authorities in accordance with anti-money laundering (AML) regulations, ensuring compliance with international standards.

1. Stamp Duties – A 5% stamp duty is payable on the transfer of land or an undivided share in land. For non-Anguillians, the stamp duty on an Aliens Land Holding License (ALHL) is 12.5%, with a reduction to 5% for developed property and 6.25% for undeveloped property.
2. Refundable Deposit for Undeveloped Land – A 10% refundable deposit is payable by non-Anguillian buyers for undeveloped land, pending completion of construction.
3. Company Share Transfers – If shares in a company owning property are transferred, the same stamp duty rate of 5% on the assessed value of the land applies, along with a fee for transfer of shares.
4. Registration Fees

Common terms of commercial leases in Anguilla typically include:

1. Lease Term – The length of the lease, usually ranging from one to five years, with options to renew.
2. Rent – The rent amount, payment frequency and any rent reviews or adjustments.
3. Use of Property – Restrictions or permissions on how the property can be used (e.g., for retail, office space).
4. Repairs and Maintenance – Allocation of responsibilities for property upkeep, typically the tenant is responsible for interior repairs, while the landlord handles structural and exterior maintenance.
5. Security Deposit – A refundable deposit to cover any potential damages or unpaid rent.
6. Termination Clauses – Conditions under which either party can terminate the lease, including breach of terms or failure to pay rent.
7. Rent Escalation – Provisions for rent increases, typically based on inflation or market conditions.

As for regulatory controls, Anguilla does not impose strict regulations on commercial lease terms. The terms are generally subject to negotiation between the landlord and tenant, with both parties free to agree on conditions that suit their needs, provided they do not contravene existing laws.

Termination of Lease – The landlord can terminate the lease if the tenant breaches key terms, such as non-payment of rent or failure to maintain the property.

Eviction – The landlord can seek to evict the tenant through legal proceedings if they remain in the property after a breach.

Claim for Unpaid Rent – The landlord can pursue a claim for any unpaid rent or outstanding amounts due under the lease.

Damages – The landlord may be entitled to claim damages for losses resulting from the breach, such as loss of rental income or property damage.

Forfeiture Clause – If included in the lease, this clause allows the landlord to forfeit the lease upon a breach, often after providing notice to the tenant.

Security Deposit – The landlord may use the tenant’s security deposit to cover any outstanding rent or damages resulting from the breach.

These remedies are typically subject to the terms outlined in the lease agreement.

Use, planning, and zoning restrictions on real estate in Anguilla are regulated primarily through the Physical Planning Act and the Anguilla Development Control Regulations. These regulations set out the procedures for land use, zoning classifications, and development approvals.

Liability for environmental contamination on real estate in Anguilla typically rests with the party responsible for the contamination,

N/A.

Yes, expropriation of real estate is possible in Anguilla, but it is subject to strict legal procedures and conditions. The government has the power to expropriate land or property for public purposes, such as infrastructure development, public utilities, or other projects that benefit the public.

A legal charge is commonly used as security for loans, where the lender holds a legal interest in the property as collateral.

Registration Fees: A fee is payable to the Land Registry for the registration of the legal charge. The fee is based on the value of the property or the amount secured by the charge.

Stamp Duty: There may also be stamp duty on the mortgage or legal charge, depending on the terms of the loan and the documentation involved.

Yes, it is possible to create a trust structure for mortgage security over real estate in Anguilla. This is typically done using a trust deed, where the property is held by a trustee for the benefit of the lender (the beneficiary) as security for the loan.