Most people who sell or buy property in the Virgin Islands are not aware of the stamp tax they are required to pay to get an ownership transfer. Here is an insight on stamp tax in the U.S. Virgin Islands.
How Does Stamp Tax Work?
In the Virgin Islands, a stamp tax is levied on individual transactions. Typically, the property value or the sale price, whichever is higher, determines the rate of stamp tax assessed. Customarily, the real estate transfer tax fee is negotiable. It may be allocated to the buyer or seller. It can also be split between both parties.
The following is a breakdown of stamp taxes in the U.S. Virgin Islands as of 2019:
- 2% for properties valued up to $350,000
- 2.5% for properties valued from $350,001 to 1 million
- 3 % for properties valued from $1,000,001 to $5 million
- 3.5% percent for properties valued over $5,000,001