Foreign buyers of property in Trinidad and Tobago have been restricted from purchasing property by a law passed in 2007 and may now be less inclined to do so after a revised property tax was introduced at the start of 2010.
However since the 2007 law was passed requiring all foreigners to have a license to purchase property on the island, no licenses have actually been issued to foreign buyers, despite assurances from the government in Tobago to speed up a license system.

The Property Tax Bill, due to come into effect on 1st January 2010, has completely changed the basis on which taxes are levied on real estate, as they have gone from an annual rateable value to an annual rental value and this could result in owning a property on the islands more expensive.

Nicholas Marr, CEO of Homesgofast.com, said: “Trinidad and Tobago was very popular with buyers from the UK, Canada and the US. It seems the combination of the global slow down; reports in violent crime and new laws have dampened the appetite from international buyers. T & T has so much to offer foreign buyers and the government would benefit from their money. I fear the new property tax may further damage the demand from overseas buyers”

“Many overseas buyers who have been sitting on their hands in 2009 are looking for places to buy in 2010. I am afraid that the new laws will put Trinidad and Tobago off the investment list if things are not sorted out soon. Investors have a huge choice of places to put their money and it does not take much for them to be put off a particular region.”

The average price of three bedroom property on the islands has fallen from $151,515 to $136,523, according to figures from the Central Bank, and luxury real estate has dropped by 18-23%.