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

The areas which are currently defined as development areas:

1. Carlisle Bay Redevelopment area in St. Michael; 

2. Speightstown in St. Peter; 

3. St. Lawrence Gap in Christ Church; and 

4. The Scotland District Conservation Area.