A new law recently enacted in Trinidad and Tobago has restricted foreign ownership of property on the island of Tobago and has created quite a stir there. The Foreign Investment Tobago Lands Acquisition Order 2007, which was effective as of February 16, 2007, states that “The island of Tobago is declared an area for which a foreign investor shall first obtain a license under the Act before acquiring any land in Tobago.” Previously, anyone could purchase up to five acres of land without restrictions.
Unfortunately for foreign investors, it seems that, as yet, there is no process for obtaining a license. This has led to a complete stop on foreign purchases according to a recent article in the Trinidad Guardian newspaper (www.guardian.co.tt ). One local resident who would like to sell her land for what had been market value has been unable to do so. In a letter to the editor of the Guardian, Joy Kelshall of San Fernando notes that:
“Instead of marketing to millions of people, my sale was limited to a few locals who did not need a licence and obviously would not pay my price.
That no procedure to get a licence or the criteria for this was in place.”
While the law does not necessarily restrict foreign ownership of land, the lack of a process to obtain the necessary license does, in fact, do just that. Chief Secretary Orville London, as quoted in the Trinidad and Tobago Express newspaper (www.trinidadexpress.com ), said, “This order does not ban the sale of land, but if affords the Tobago House of Assembly the opportunity to oversee and manage the sale of lands for business purposes.”
Nicholas Marr CEO of UK based overseas property portal Homesgofast.com (www.homesgofast.com ) recently visited the Caribbean Island to see they effect that the new legislation was having on Tobago real estate market ‘Tobago appears to have lots of luxury property and prime land for sale and it appears to be a buyers market. It is important that overseas buyers considering buying in Tobago are not put off by the new legislation. The new law is not in place to put off foreign investors it is merely a way for the government to keep abreast of what overseas property investors are buying. This to me is a wise move and will serve to keep harmony between local housing needs and that of overseas investors. Tobago’s local economy benefits from work provided by foreign owned holiday homes and tourism. It appears that Tobago housing market in the long term will benefit from this law . Once the administrators have sorted out the licensing procedure I feel it will make investing in Tobago real estate an even better proposal’
Luxury Tobago Property for sale
In recent years, land on Tobago has soared in value. An analysis done in response to the new law by a coalition of local business groups showed, however, that most of the land being purchased was done so by local investors, not foreigners.
