Below is a guide to buying, selling and owning property in Barbados. There are no restrictions on the purchase of property in Barbados by persons who are non-nationals or permanent residents. There are no capital gains or inheritance taxes in Barbados.
BUYING
Transaction Costs
- Attorney Fees – Approx. 1% – 2.5% plus VAT
- Proportionate amount of Land Tax
Mortgages/Finance
- US$ Mortgages are readily available to non-nationals from the offshore sector of two local commercial banks. Terms vary from
bank to bank.
Below are a few general guidelines:
– LTV Ratio: varies between 40% – 65%
– Minimum loan value: US$250,000
– Interest rates are pegged against international LIBOR rate
– Amortization term: range from 15 – 20 years maximum or retirement
- Banks Attorney fees are approximately 1% – 2.5% plus 17.5% VAT
- Arrangement Fee (Bank Fee) of 1%
Standard Purchase Procedures
- Verbal offer and acceptance (in some cases a reservation agreement may apply)
- Appoint an Attorney-At-Law
- Exchange of contracts for sale and payment of a 10% deposit to Vendor’s Attorney-At-Law within 2 to 6 weeks
- Conveyance and payment of 90% within 3 to 6 months (in the case of off-plan developments, stage payments based on construction progress may apply)
- Foreign currency brought into the island as well as funds borrowed by non-nationals should be registered with the Central Bank of Barbados
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SELLING
Transaction Costs
- Attorney Fees – Approx. 1% – 2.5% plus VAT
- Agent Fees – 4% to 5% + VAT (Includes marketing, viewing, signage etc.)
- Stamp Duty – 1%
- Property Transfer Tax is payable by the vendor at the following rates:
- Unimproved property – 2.5%
- First US$75,000 exempt
- Amounts over US$75,000 – 2.5%
Standard Selling Procedures
- Verbal offer and acceptance
- Appoint an Attorney-At-Law
- Exchange of contracts within 2 to 4 weeks
- Provision of copies of prior deeds
- Draft conveyance sent to Purchaser’s attorney for perusal
- Signing of Conveyance within 2 to 6 months
- The following bills must be fully paid
– Land Tax
– Water
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OWNING
Annual Costs
- Property Insurance – US$1.85 to US$2.50 per US$500
- Contents Insurance – US$3.00 to US$3.75 per US$500
- Land Tax:
Improved Value – Residential
– First US$75,000 – 0%
– On > US$75,000 but < US$225,000 - 0.1% - On > US$225,000 but < US$500,000 - 0.45% - On > US$500,000 – 0.75%
– Property tax capped at US$30,000
Improved Value – non residential properties – 0.7%
Site Value – All vacant land – 0.8%
Monthly Costs
- Electricity, Water, Telephone, Cable, internet
- Condo fees, if applicable – see chart for a guide by property
- Pool and garden maintenance, if applicable
Property Management
- Management Fee – minimum of US$250
Landlord Rental Fees
- Long Term Rentals
- 1 month rent – 1st year
- 1/2 month rent – 2nd year
- 1/4 month rent – 3rd year
- Short Term Rentals
- 10% to 30% commission is payable on short term rentals
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SPECIAL ENTRY & RESIDE PERMIT (SERP)
The fees charged by the Barbados Immigration Department for Special Entry and Reside Permits, which are valid for 5 years:
Eligibility
Non-nationals who are either:
- High Net Worth Individuals: Owning assets of US$5 million
or more, or
- Owners of property not subject to mortgage, or investments purchased in Barbados valued at US$2 million or more with funds originating outside of Barbados
Fees For Retired Persons
- Retired persons over 60 years: US$5,000
- Retired persons under 60 years: US$3,500
Fees For Employed Persons Over 60 years
- Special Entry Permit: US$5,000; plus
- Indefinite work permit: US$15,000; or
- Annual work permit: US$1,500
Fees For Employed Persons Under 60 Years
Option 1:
- Special Entry Permit: US$5,000; plus
- Indefinite work permit: US$20,000
Option 2:
- Special Entry Permit: US$3,500; plus
- Annual work permit: US$1,500
Fees For Non-Executive Directors
- Special Entry Permit: US$5,000; plus US$500 annually
Fees For Dependants
- US$150 per dependent
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