Jamaicans looking to buy a $10-million house will save nearly $200,000 as a result of the government’s new tax cuts.
In his budget presentation last week, Finance Minister, Dr Nigel Clarke, announced a reduction in both stamp duties and transfer tax. Realtors are already projecting that the reduction in transfer tax will not only see real estate sales skyrocket but result in major savings for buyers and sellers.
Stakeholders are hailing the 2019/ 2020 budget as among the best they’ve seen in a long time. A major component that has all sectors talking is the reduction in transfer tax and stamp duties.
In essence, more savings for Jamaicans seeking to buy their dream home, acquire or sell land. But, just how much will these tax cuts save those seeking to buy or sell real estate?
Come April 1, a Jamaican seeking to own a property costing $10-million will save an estimated $200,000. They’ll only pay about $28,000 in transfer tax and stamp duties, compared to $225,000 before.
And, according to President of the Realtors Association of Jamaica, Andrew James, the buyer will also only have to make a 5 percent down payment.
There are also significant savings for the seller of that property, who will now be $500,000 less to transfer the title. And what about that $20-million property you’ve been eyeing for a while?
When the new tax cuts take effect next month, it would cost you approximately $53,000 in transfer tax and stamp duty, compared to almost $400,000 before. The person selling that property, would save just under a million dollars.
The changes are expected to bring major investments to the real estate sector while reducing the burden of opening and closing costs.