The Property Banks Buyers Guide to Barbados
There
are no restrictions to owning property on the island. Anyone wishing
to purchase a holiday or retirement home on Barbados is welcomed, as
are overseas investors who may be interested in development
projects. As a non-Barbadian, a purchaser must initially get
permission from the Central Bank. This is simply a formality.
CENTRAL BANK
All money brought into Barbados must be registered at the Central
Bank, which, in turn, guarantees repatriation when the property is
sold. The obvious importance of this procedure makes it essential to
conduct any transactions through a reputable real estate agent and a
local Attorney-at-Law who will deal with all the necessary
formalities on your behalf.
Caribbean Property Services will be able to advise you about the
best agents and lawyers on the island.
PROPERTY TRANSFER TAX
There is no Property Transfer tax payable by the buyer for existing
buildings although the Vendor must pay a transfer tax of 10% of the
purchase price. Property Transfer Tax of 10% is payable by the buyer
for land purchase. Foreign investors should seek professional tax
planning advice prior to purchasing property on Barbados in order to
minimise or avoid liability to taxes and duties on resale. Caribbean
Property Services will recommend reputable local financial advisers
who are specialists in this area.
STAMP DUTY
The Vendor has to pay 1% Stamp Duty when
selling. There is no Stamp Duty liability for purchasers.
MORTGAGES
Financing is available for individuals or corporations who are
non-resident under Barbados Exchange Control regulations, subject to
being able to prove adequate income stream in dollars or other hard
currency to service the mortgage.
LEGAL FEES
Legal fees are usually about 2% to 3%. You may be able to negotiate
these percentage rates.
DEPOSIT
Purchasers should be aware that once an agreement has been made, and
a 10% deposit of the agreed purchase price has been paid, the sale
must proceed. Alternatively, the deposit will be forfeited.
COMPLETION
The period between payment of deposit and completion is likely to be
at least 3 months.
ANNUAL PROPERTY TAX
An annual tax is charged on property. The assessment is made on the
improved value, or if undeveloped, on the site value. These
Government valuations are reviewed every three years. Please see
guide below:
Residences:
Up to BdsS$350,000 . 0.2% Bds$350,000 to 850,000 . 0.7% Over
Bds$850,000 . 1.0%
Properties other than residences 0.7% Unimproved land 0.8% (Exchange
rate guide: Bds$1.98 - US$1)