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Buying a house in Guyana: the transport, the advertisement and the taxes

A foreigner may buy land and houses in Guyana like a Commonwealth citizen. Ownership passes by transport, a deed passed before a judge or the Registrar of Deeds, after an advertisement in the Gazette and thirteen days in which others can oppose it. According to the statute the transfer duty is 2 percent.

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As a Dutch citizen you may buy a house or land in Guyana. The Status of Aliens Act says that an alien may acquire, hold and dispose of property "in the same manner in all respects as by a Commonwealth citizen". The Investment Act says the same for investors. Ownership passes by transport: a deed passed before a judge or the Registrar of Deeds, after the transfer has been advertised in the Official Gazette. Anyone then has thirteen days to enter opposition.

Step or item What the law or the GRA says
Instructions to the Deeds Registry only from the buyer or seller, their attorney or a legal practitioner, with the affidavits of purchaser and seller
Advertisement once in the Gazette, on a Saturday; anyone who lodges after Thursday noon moves a week
Opposition until 3 p.m. on the thirteenth day after the advertisement
Seller's certificates for the Registrar: a GRA certificate that the seller filed returns and paid taxes, and a certificate from the local authority that the rates are paid
Passing after the fourteenth day, if there is no opposition and the documents are in order
Transfer duty 2% of the value (Tax Act, s. 13, 2012 text)
Property tax, per year nothing on the first GYD 40 million of net property; 0.5% on the next 20 million; 0.75% above that
Capital gains tax on sale exempt if the gain does not exceed GYD 500,000, or after more than 25 years of ownership

GYD is the Guyanese dollar.

How does the transfer work?

Under the Deeds Registry Act nobody may transfer or mortgage immovable property in Guyana except by passing and executing a transport or mortgage before the Court. The Registrar of Deeds may do so too, with the same force.

The procedure is in the schedule to the Act. The instructions, with the description of the property and the documents on which title rests, are lodged with the Registrar. A transport also needs the affidavits of purchaser and seller. The Registrar has the transfer advertised once in the Gazette, on a Saturday. Anyone who believes they have a right can enter opposition until 3 p.m. on the thirteenth day. If there is no opposition and the documents are in order, the transport is passed and registered after the fourteenth day.

For a sale passed before the Registrar, section 16A requires two certificates from the seller: one from the GRA that all returns were filed and all taxes paid (or arrangements made), and one from the local authority that the rates on the property are paid. Without both, the Registrar does not pass the transport.

The law accepts instructions only from the party, their attorney or a legal practitioner. If you cannot be in Guyana yourself, an attorney can act with a special power of attorney (section 19). A power of attorney from the Netherlands gets an apostille.

A lease of 21 years or more (long lease) goes the same way as a transport, under section 13.

How do you check who the owner is?

The records of the Deeds Registry are open to anyone who pays the fees. Have your lawyer check the chain of transports and any mortgages. A mortgage stays in place until its cancellation has been executed before the Court or a notary and filed. As proof of ownership the GRA names a transport, a title certificate or a lease.

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Which taxes do you pay?

On purchase. The Tax Act levies 2 percent of the value of the property on a transport. The Registrar may accept the price in the deed as the value or require a valuation. This is in the consolidated text of 2012; ask your lawyer whether the rate has changed since.

Every year. Property tax is a tax on your net worth: what you own minus your debts, such as a mortgage. The GRA includes movable and immovable property, "located in Guyana or elsewhere". On the first GYD 40 million you pay nothing; above that 0.5% and from 60 million 0.75%.

On sale. Capital gains tax does not apply if the gain is GYD 500,000 or less, or if you sell after more than 25 years. If you sell within twelve months, the gain counts as ordinary income. The rate is not on the GRA page.

Can you deduct mortgage interest?

Only if you are already resident. Mortgage interest relief applies to someone who was resident in Guyana in the preceding year, buys a first own home and lives in it. The loan may not exceed GYD 30 million, from a licensed Guyanese lender. The GRA also requires that your tax returns for the past eight years have been filed. For a newcomer the scheme is therefore usually not usable.

If you want to live there first before buying, read renting in Guyana. You need your TIN for dealings with the GRA; see registration and numbers.

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What this rests on

The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.

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