FAQs

US Virgin Islands Real Estate FAQs

Buying or selling property in the U.S. Virgin Islands comes with unique considerations, from local financing and closing requirements to property taxes, insurance, and island-specific ownership costs. Below, Calypso Realty answers some of the most common questions about buying, selling, and owning property in St. Thomas, St. John, and St. Croix.

• Can nonresidents buy property in the US Virgin Islands?
  

  Yes. You don’t have to be a USVI resident to buy property here. U.S. citizens can purchase real estate in the territory, and international buyers can generally buy property as well. Owning real estate, however, doesn’t automatically give a foreign buyer the right to live or work in the United States or the USVI.

  International buyers should speak with qualified immigration and tax professionals before purchasing. For more on the process, see Calypso Realty’s complete guide to buying real estate in the US Virgin Islands.

• Can I finance a home in the USVI?

  Yes. Financing is available for USVI real estate, although not every mainland lender works in the territory. A lender familiar with USVI transactions will already know the local requirements for appraisals, insurance, surveys, and other parts of the purchase.

  If you plan to finance, speak with a lender early so you know your budget before making an offer.

• How long does it take to close on a USVI property?

  A typical transaction may take about 30 to 90 days from an accepted offer to closing, although the timeline varies. Financing, title work, surveys, inspections, insurance, appraisals, and property condition can all affect how long it takes. Cash purchases may move faster than financed transactions.

• How does a real estate closing work in the USVI?

  USVI real estate closings typically involve local attorneys.Buyers and sellers generally have their own legal representation. The attorneys handle title matters, transaction documents, and closing. After the sale, deeds and other real estate documents are recorded with the USVI Recorder of Deeds.

• Do homes in St. Thomas have cisterns?

  Many St. Thomas homes use cisterns to collect and store rainwater. Buyers should check the condition of the cistern, pumps, filtration equipment, and plumbing, and understand the basic maintenance involved. Other systems worth checking may include generators, solar equipment, septic systems, hurricane shutters, and other storm-protection features.

• What insurance should I consider when buying in the USVI?

  Property insurance is an important part of buying in the Virgin Islands, especially because of hurricane exposure. Coverage and cost can depend on the home’s location, construction, roof, storm protection, elevation, and condition. Buyers using financing may also need to meet their lender’s insurance requirements before closing.

  It’s best to look into coverage early rather than waiting until the end of the transaction.

• What other costs should I consider when owning property in the USVI?

  Along with the purchase price, buyers should budget for ongoing ownership expenses such as:

  • Property taxes
  • Homeowners and windstorm insurance
  • Condo or homeowners association fees
  • Electricity
  • Cistern and water-system maintenance
  • Generator or solar-system maintenance
  • Landscaping and pool care
  • General repairs and property management

The amount will depend on the property, so review the home’s systems and maintenance needs before buying.

• How do property taxes work in the USVI?

Real property owners in the U.S. Virgin Islands pay territorial property taxes. The Office of the Lieutenant Governor’s Division of Real Property Tax handles property assessments and tax collection. The amount owed depends on the property and its assessed value. Buyers should review the current tax information for the specific property during due diligence.

• What should I know about the USVI transfer tax?

The Virgin Islands charges a stamp tax when real property is transferred.

The current rates are:

• • 2% for property valued up to $350,000
  • 2.5% from $350,001 to $1 million
  • 3% from $1,000,001 to $5 million
  • 3.5% above $5 million

The buyer and seller can negotiate who pays the stamp tax as part of the transaction. Check the purchase agreement rather than assuming one side will always cover it.

• What costs should I expect when selling a USVI property?

Seller expenses may include brokerage commissions, attorney fees, agreed-upon repairs or credits, outstanding property expenses, and a share of the Virgin Islands stamp tax. Ask for an estimated seller net sheet before listing so you have a better idea of what you may receive after expenses. 

If you’re thinking about selling, start with Calypso Realty’s Deciding to Sell guide.

• When is the best time to buy or sell property in the USVI?

USVI real estate transactions take place throughout the year. For buyers, timing often depends on when the right property is available and when financing is in place. For sellers, pricing, property condition, competition, and personal timing may matter more than the season.

Hurricane season runs from June through November, and transactions still take place during those months. Buyers and sellers should be prepared for possible weather-related delays and make sure insurance and storm preparation are addressed.

• What should buyers know about waterfront and hillside properties?

Waterfront and hillside properties come with different maintenance and access considerations. Salt exposure can increase wear on metal, paint, windows, and other exterior materials at waterfront homes. For hillside properties, buyers should pay attention to road access, driveway grade, drainage, retaining walls, and slope conditions.

You can also compare condos, villas, waterfront homes, and land in the USVI.

• Which islands does Calypso Realty serve?

Calypso Realty primarily works with buyers and sellers in St. Thomas and St. John and also handles transactions in St. Croix. Property types, access, communities, and day-to-day life vary from island to island. Calypso Realty’s guide to St. Thomas vs. St. John vs. St. Croix offers a closer comparison.

Have another question about USVI real estate?

If you’re buying, selling, or investing in the U.S. Virgin Islands, contact Calypso Realty or browse current USVI properties.