Special Development Areas Act

The Special Development Areas Act sets out
the designation of special development areas and provides relief for approved developers constructing or improving a building or structure in those areas and to persons financing such work (other than a commercial bank).

The activities that an approved developer may carry out are:

1. Hotels including conference areas;
2. Residential complexes;
3. Commercial or industrial buildings including office 
complexes;
4. Other tourism facilities;
5. Water-based activities;
6. Tourism projects highlighting heritage and natural 
environment;
7. Arts and cultural investments; and
8. Agricultural-based activities.

Exemptions & Allowances

Approved developers are exempt from:

• Import duties and VAT on inputs for the construction or renovation of buildings and refurbishment of existing buildings.
• Charges on repatriation of interest (for a period of 10 years),
• Land tax on the improved value of the land
• Property transfer tax payable by vendors on the initial 
purchase of the property whether national or non-national

Persons financing such work are exempt from: 


• Income tax on interest earned on loans to approved developer.

Allowances

• An approved developer pays Corporate Income Tax (CIT) at the rate of 15%
• Is granted initial allowances of 40% and annual allowances of 6% on industrial buildings
• Is granted initial allowances of 20% and annual allowances of 4% on commercial buildings.

DEFINED AREAS 


1. The areas which are currently defined as development areas:
   1. Speightstown in St. Peter;
   2. St. Lawrence Gap in Christ Church; and
   3. The Scotland District Conservation Area.

For more details on the Special Development Areas Act please refer to CAP 237A- Special development Areas Act