Development Cost And Fiscal Incentives

 
 

At the time of purchase, various additional development costs are likely to be incurred, although the Government of St. Kitts and Nevis offer fiscal incentives to all major investors to their country.  The amount and type of these incentives are dependent on the nature and sale of the investment.

 

DEVELOPMENT COSTS
Legal Fees:                                      1.5% to 3% of the purchase price, but negotiable.
Selling Agents Fees:                       Normally 3% of the purchase price.
Government Transfer Tax:             6% of the purchase price - not negotiable.
Alien Land Holder's License:         12.5% of purchase price.
Architec's Fees:                               8% of project costs.
Surveyor's & Project Mgmt Fees:  8% of the project costs.

FISCAL INCENTIVES
Citizenship:                                       Thereby waiving Alien Land Holder's License.
Corporation Tax:                              Free incentives are available over 10 to 25 years.
Duty Free Concessions:                   Applicable to building and operational costs and may
                                                           be available ut to 25 years.
Development Loans:                        Available with the National Development Bank.

A complete list of available incentives can be obtained, before the time of purchase, from the Government offices.

 

CONSTRUCTION COSTS
The following construction costs for the Concept Design are based on current, known construction costs in St. Kitts.  It does however, make the following assumptions:

A. No allowance for Duty Free Concessions in building materials.
B. A good standard of finishes.
C. All leased buildings fitting out by Tenant.
D. Developer to provide suspended ceilings, wall finishes and allow for provision of air
     conditioning.
E. New septic tank sewage disposal will be requred.

MAIN BUILDING GROUND FLOOR:
Main building: structure upgrade, Bay Road facade, electrical and HVAC. US$      150,000
(4) Shops: new facades, structural, electrical and HVAC.                               US$       85,000
Shop #5 and Delicatessen: new facades, structural, electrical and HVAC.    US$       40,000
(3) Apartments: new finishes, structural, electrical and HVAC.                      US$     150,000
Business Centre: new glass facade, structural, electrical and HVAC.            US$      75,000
Courtyard and New Access: upgrading, new septic tank, paving and
landscaping.                                                                                                         US$    165,000
Offices and Hotel Entrance: new facades, structural, electrical and HVAC.  US$      70,000

FIRST FLOOR OFFICE:
Upgrading the structure, new facade, structural, electrical and HVAC.          US$      45,000

SECOND FLOOR HOTEL:
New structure including roof, new access including roff, new access
including stairs & lift, structural, electrical and HVAC.                                   US$    370,000

                   Subtotal:                                                                                           US$  1,150,000
                   Contingency (10%)                                                                          US$    115,000
                   Subtotal                                                                                            US$  1,265,000
                   Architect, surveyor and Project Management
                   Fees (12.5% of project costs):                                                        US$     158,125
                   Suggested Construction Costs Total:                                             US$  1,423,125

 

See Concept Plans

 


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