How much stamp duty do I pay when buying a home in Trinidad and Tobago?

The rates on a home

Stamp duty is charged on the deed of conveyance, or the Real Property Act transfer, that passes the property to you (Stamp Duty Act (Chapter 76:01), s 3 and First Schedule). Where the property is, or includes, a dwelling-house for use wholly or mainly for residential purposes, and you apply to the Board on its approved form with evidence, the duty on the price is (First Schedule, para (2)):

• the first $850,000: nil;
• the next $400,000 (up to $1,250,000): 3%;
• the next $500,000 (up to $1,750,000): 5%;
• everything above $1,750,000: 7.5%.

Each rate applies to the part of the price within its band, not to the whole price. Land with no dwelling-house on it, bought for use wholly for residential purposes, has its own reduced rates on application: nil on the first $450,000, 2% on the next $200,000 (up to $650,000), 5% on the next $200,000 (up to $850,000) and 7% on everything above $850,000 (para (3)).

If no application is made, the general rates for any property apply instead (para (1)), and they are higher. The Inland Revenue Division provides information on stamp duty and the exemptions: Stamp Duty FAQs.

The Act does not say whether the buyer or the seller pays, so check what the agreement for sale says before you sign.

First-time home-owners

A first-time home-owner buying a property that is, or includes, a dwelling-house for use wholly or mainly for residential purposes pays (para (1A)):

• nothing on the first $2,000,000;
• 5% on the next $250,000 (up to $2,250,000);
• 7.5% on everything above $2,250,000.

The $2,000,000 threshold has applied since 1 January 2021 (Finance Act 2020 (Act 30 of 2020), ss 7, 10). From 1 January 2019 until then it was $1,500,000 (Finance Act 2018 (Act 19 of 2018), ss 26, 32). Again, this depends on an application to the Board on its form, with satisfactory evidence. The Act does not define "first-time home-owner", so ask the Board what it needs before you sign, especially if you are buying with someone who has owned a home before.

The mortgage deed. It is stamped separately. It is exempt if the loan was needed to buy the home and does not exceed $850,000, or $2,000,000 for a first-time home-owner, again on application to the Board. A larger home loan attracts duty; the Inland Revenue Division provides information on how it is charged (First Schedule, "Mortgage" and "Exemptions").

A worked example

A home bought for $2,500,000, with the residential application made:

• not a first-time home-owner: 3% of $400,000 ($12,000), plus 5% of $500,000 ($25,000), plus 7.5% of $750,000 ($56,250), a total of $93,250;
• first-time home-owner: 5% of $250,000 ($12,500), plus 7.5% of $250,000 ($18,750), a total of $31,250.

On a $1,200,000 home, the duty is $10,500 (3% of $350,000), or nil for a first-time home-owner.

The 2-month deadline

You can stamp without penalty by paying within 2 months after the deed is first signed. If the deed goes to the Board for its opinion within those 2 months, pay within 14 days after the notice of assessment (s 24(1)(a)). The clock starts at the first signature, not the last. For a deed first signed outside Trinidad and Tobago, time runs from the date it is received here (s 24(2)).

After 2 months, a penalty is added: $50, plus 25 cents for every $5 or part of $5 of the duty above $50. It doubles after 6 months. After a year, it is charged for each 6 months or part of 6 months since the first signature (s 24(1)(b)–(d)). On duty of $10,500 paid in the fourth month, the penalty is $572.50.

An unstamped deed cannot be registered with the Registrar General (s 26(1)). Except in criminal proceedings, it cannot be relied on for any purpose until it is stamped (s 22(5)). The Board of Inland Revenue manages stamp duty (s 4).

Two other traps

• Buying below value, for example from a relative. If the Board considers that a low price gives the buyer a substantial benefit, it can treat the sale as a gift and charge duty on the property's value (s 48).
• Turning the home into business premises. Converting residential property to commercial use within 1 year attracts duty at the commercial rate, and within 2 years at half that rate. The buyer must tell the Board, or face a fine of up to $15,000 (s 47B; Interpretation Act (Chapter 3:01), s 68).