Guide to Buying Property in Barbados
Buying Property in Barbados
This is our guide to buying property in Barbados. With over twelve years experience of selling properties on the island we have collated the most frequently asked questions by prospective buyers and provided answers to help you . Our expert teams based in both the UK and Barbados will be more than happy to answer any further questions you may have on the purchasing process, please do get in touch.
Are there any purchasing restrictions on non-nationals?
No, but non- residents must apply for permission from the Central Bank of Barbados to buy a property. This is generally a formality and your lawyer will usually deal with this. Foreign buyers need to register any money brought into Barbados.
How much do lawyers in Barbados usually charge on purchase of a property?
Fees are usually charged at between 1.5% and 2% of the purchase price plus VAT (VAT is currently charged at the rate of 15%).
How much do estate agents/realtors usually charge on sale of a property in Barbados?
The standard charge is usually 5% of the sale price.
What deposit is usually required on exchange?
10 per cent.
Is there any stamp duty payable on purchase of a property in Barbados?
There is no stamp duty payable by the buyer. Stamp duty is, however, payable BY THE SELLER on a sale at the rate of 1% of the sale price.
Are there any annual property taxes in Barbados?
The amount will depend on the value of the property. Your local lawyer will be able to advise.
What other taxes are payable locally?
Property Land Tax in Barbados – is payable by the seller on a sale of the property at the rate of 2.5% on any excess above BD $125,000 of the sale value. If it is land alone being sold it is payable at the rate of 2.5% of the whole sale price.
Is capital gains tax chargeable in Barbados on any gain on a sale of the property?
How long does the sale process in Barbados usually take?
On average it takes around 3 months. Neither the buyer nor the seller needs to remain on Barbados during the sale process.
How much does property insurance in Barbados usually cost?
This is generally charged at the rate of approximately 0.4% for residential property.
The property I am buying is held by a company, is this usual?
It is not uncommon for properties in Barbados to be held through a local or foreign company that is registered to do business on the island. Your lawyer will advise you on the pros and cons of buying in your own name or via a company.
Can I get a mortgage in Barbados?
Mortgages are usually available at around 50% to 70% of the property value with a maximum term of 15 years. You would need to show that you can make the repayments from personal funds and would not be dependent on any rental income to service the mortgage. The process can be slow and foreign buyers are advised to line up funding (whether within or outside of Barbados) before making offers on properties.
Are there any planning laws I need to consider?
Yes, any proposals to build a new property or conduct major alterations to an existing property are likely to require planning approvals. Approvals can take some time to obtain (around 6-8 months) and applications should be made as soon as possible.
If I rent my property out can I find property managers to look after it?
Yes, there are many professional firms who will manage your property if you choose to rent it out. Many owners in Barbados do rent out their properties to cover costs and provide spending money in Barbados. To visit our property rentals site go to barbadosdreamvillas.com
If this guide to buying property in Barbados does not deal with all of your questions we would be delighted to assist in answering any further questions.