Stamp Duty: Charges & Mortgages

Stamp Duty is payable on any document described as: 

  • Bill Of Sale
  • Charge
  • Hypothecation
  • Mortgage
  • Pledge

or any other document by which a mortgage is granted.  The property acts as security for a fixed amount of money loaned, or to be loaned to the owner of the interest.  For the purpose of this summary a Charge and a Mortgage are considered the same.


Mortgage over Immovable Property (real estate)

A traditional mortgage or charge over a property including;

  • Debentures
  • Equitable Mortgage
  • Legal Mortgage 

The rate of Duty payable is dependant on the amount of money advanced (sum secured) and the type of mortgage granted.  For immovable property (real estate);

Rate Criteria
1%
of monies advanced
where the sum secured is CI $300,000 (US $357,143) or less
1.5%
of monies advanced
where the sum secured is in excess of CI $300,000 (US $357,143)

Where monies are advanced in US Dollars, a conversion to CI Dollars at the rate of US $1 = CI $0.84 must be applied before establishing Stamp Duty payable. 

For moveable property please consult the Stamp Duty Law

 


Mortgage over Moveable Property (including Bill of Sale)

Typically, mortgages over moveable property include car or boat loans, furniture loans or other loan where the right to seize the property in the event of non payment is included.

Rate Criteria
1.5%
of monies advanced
Any sum secured


Increases in Mortgage / Unlimited Mortgages

An increase in a Mortgage occurs when the sum secured is increased through the release of additional funds to the owner of the property.  An Unlimited Mortgage is often in the form of a Debenture and can be considered as a rolling line of credit, where there is not specific cap to the amount of the money that can be advanced (at the discretion of the Mortgagee)

Where an increase in the Mortgage occurs, Stamp Duty as a Mortgage over Immovable Property will apply only to the increased amount in the first instance (which shall be treated as a new document for timing purposes), but having regard to the total sum advanced as a result of the increase.  If the total sum advanced subsequently exceeds the CI $300,000 threshold, Stamp Duty on the entire sum will be increased accordingly through an upstamping, to reflect the higher Stamp Duty rate.

Monies may only be released under an unlimited Mortgage agreement if Stamp Duty has been paid up to, or in excess of that amount.  On each and every occasion that the sum secured increases it shall be treated as a new document (for timing purpose), but with Stamp Duty payable on only the increased amount, subject to the threshold review as detailed above paragraph. 


Variations

Where a Charge or Mortgage is varied so that additional monies are loaned, the the provisions above (Increases in Mortgages) apply.  Where the variation reduces the sum secured or varies other terms or conditions (such as the Interest Rate) the document is chargeable as a Deed;

Amount Criteria

CI $50
 (US $60.98)

per document


Collateral Security

Where additional or alternative property is being offered towards securing the Charge or Mortgage including;

  • Additional Mortgage
  • Auxillary Mortgage
  • Collateral Mortgage
  • Substituted Mortgage

Providing the principal Mortgage has been stamped as a Mortgage over Immovable Property (above);

Amount Criteria

CI $50
 (US $60.98)

per additional document presented for Collateral Security


Release of Mortgage

Where a owner of the interest in land is being released from their Mortgage obligations by;

  • Discharge or Mortgage (where the mortgage has been paid off in full)
  • Surrender of Mortgage (by agreement between the parties)
  • Transfer of Mortgage (to another mortgage provider)

or any other document by which a Mortgage is released;
 

Amount Criteria

CI $50
 (US $60.98)

per release document
 


Submission Requirements

In submitting a document for Stamp Duty you should enclose the following;

  • Payment, based on the anticipated rate of Duty and the consideration paid. If additional Duty is required you will be advised accordingly.
  • Any waiver letter given from the Minister of Finance in relation to Stamp Duty.