In my legal practice I am often asked to advise non-Anguillians about buying or leasing land in Anguilla. Many people fall in love with our little island and want to obtain a piece of paradise, usually for private residential purposes. Anguilla welcomes persons of good repute who choose to make Anguilla their home in this way and thereby contribute to the economic growth of the country.

Alex Richardson

The process is not a particularly easy or expeditious one, but perhaps this can be excused in a society where the alienation of land is a very serious affair, given the small size of the island. Nonetheless, there are several steps in the somewhat convoluted procedure which could be streamlined to make the process less painful.

The legislation
The relevant law is found in the Aliens Land Holding Regulation Act (the “Act”) which states that no land shall be held by an unlicensed alien, and any land so held will be forfeited to the Crown. Two exceptions are given: (a) where less than five acres of land is held on an annual or shorter lease for residential or business purposes, and (b) where land acquired under a will or intestacy is sold, or a licence obtained, within one year.
An “alien” is defined as (a) a non-belonger of Anguilla within the meaning of the constitution; (b) a company incorporated in a foreign country; and (c) a company incorporated in Anguilla or the British Commonwealth which is under alien control. Essentially, such a company is regarded as being under alien control if any of its directors is an alien, if more than one-third of the voting rights or share capital is held by alien shareholders, if more than one-third of the shareholders are aliens, or if more than one-third of annual dividends are payable to aliens.
Licenses are granted by the Governor acting in Executive Council, and normally contain conditions. If these conditions are breached, again the land can be forfeited to the Crown. The Governor in Council has the power to grant partial or total exemptions to an alien from the licensing requirements of the Ordinance.

The Step by Step Procedure
The first step is for the purchaser to identify a piece of land and conclude a sale agreement with the owner. This agreement is usually drafted by an attorney, and is normally stated to be subject to an alien land holding licence being obtained. If the land is undeveloped, before the purchaser can apply for a licence, planning permission must be obtained by applying to the Land Development Control Committee.
The licence application is then submitted in duplicate to the Department of Lands, along with bank and personal references, a police record from countries in which the applicant has lived during the past seven years, and an application fee of approximately US$250. The department confirms the declared value of the land, after which the application is eventually passed to the office of the Minister of Lands for consideration.
All applicants are interviewed by the Minister of Lands. The application is then presented to the Executive Council at one its weekly meetings by the Minister. If the application is approved, the Permanent Secretary in the Ministry of Lands will inform the applicant by letter. The licence itself, including any conditions, is then sent to the Governor for his signature. At this point the applicant can collect the licence, pay applicable taxes and stamp duty, and register the land transfer at the Land Registry.

Transfer taxes and stamp duty
A transfer tax of 5% of the freehold value of the land is payable, plus 12.5% of the value as stamp duty when the land is being sold outright. Where the land is being leased, the amount of stamp duty varies according to the term of the lease. It ranges from 11% for terms of over 99 years, to a flat fee of EC$500 for terms of less than 10 years.

Government policy
The Government monitors the alienation of land quite closely. In order to prevent aliens acquiring land merely for speculation and on-selling, a clear policy has been put into place which addresses the specific way in which land is to be developed. The present policy is to permit aliens to purchase up to half an acre of land for residential use, but larger areas may be permitted in exceptional circumstances. Where permission is granted for a private home, renting is NOT permitted unless specific permission is first obtained. The granting of such permission will be subject to the payment of a fee to the Government of US$1,200 per year.
Residences built by aliens must not be less than 2000 square feet of gross external floor area, and the property must be completed within eighteen months of the approval of the licence.

Penalties
An alien land holding licence is granted for the purpose of acquiring and developing a specific piece of land. Where a private residence is not completed within the eighteen month timeframe, certain penalties kick in. A penalty of EC$500 per month is charged for a period of twelve months, and is then increased to EC$1000 per month for another six months. If the building is still not completed at the end of this further eighteen month period, the Government may commence forfeiture proceedings which will result in the land being transferred to the Government.
Breach of any other specific conditions in the licence may also result in forfeiture.
Finally, it should be noted that the Government’s guidance notes on the acquisition of land by aliens suggest that legal advice should be sought before the purchase of any land or an interest (such as a lease) in land.

Alex Richardson is a Partner in the law firm Richardson Sinel & Associates, P O Box 1474, NBA Corporate Building, The Valley, Anguilla, Tel: 264 498 5544, Fax: 264 498 5545, email: arichardson@sineltrust.com. He is also CEO of Sinel Trust Anguilla Limited.

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