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At Terra Caribbean, we believe the best results are guided by data. That’s why we prioritize acquiring and analyzing in-depth knowledge of the property market in Barbados. Like us, our clients value access to real estate market information, as it empowers them to make more informed and confident decisions. Whether you’re purchasing your first home, investing in commercial real estate or land, or leasing office space, you can trust our team to provide the essential information needed to guide your decisions.
Selling Process
With a wealth of real estate knowledge and a team of highly-qualified experts, more clients trust us to list and sell their properties in Barbados. We provide up-to-date information and valuable resources, giving you the confidence to make informed decisions throughout the sale process. Our seller dashboard keeps you informed with real-time updates on viewings and other property activity as we work to find the ideal buyer. Explore key insights below for more details.
Transaction Costs:
- Attorney fees are approx. 1% – 2.5% plus 17.5% VAT
- Real estate agent’s fees will be 4% to 5% plus 17% VAT – this fee includes marketing, viewing, signage, etc.
- Stamp duty is 1%
- Property transfer tax is payable by the vendor at the following rates:
- Unimproved property – 2.5%
- Improved property
- First US $75,000 is exempt
- Amounts over US $75,000 – 2.5%
Standard Sale Procedure:
- Verbal offer and acceptance
- Appointment of an attorney-at-law
- Exchange of contracts within two to four weeks
- Provision of copies of prior deeds
- Draft conveyance sent to the purchaser’s attorney for perusal
- Signing of conveyance within two to six months
- Land tax bills and water bills must be fully paid up
Mortgage Information
If you’re considering financing the purchase of your property in Barbados, there are several options available. Below, you’ll find information on financing through US dollar offshore mortgages or local currency mortgages. Should you have any questions, our agents are happy to provide more details or connect you with a qualified financing specialist.
US Dollar Mortgage / Finance:
US dollar mortgages (please note that non-nationals/non-residents can also borrow in BBD Dollars) are readily available to non-nationals and non-residents, from the offshore sector of the local banking industry. You would be best advised to contact these institutions for their exact terms and conditions, however here is an overview of what can be expected:
- 65% LTV up to US $2M
- 50% LTV in excess of US$2M
- No minimum loan amount is required
- Amortization is typically capped at 15 years, although longer terms may be considered on an exception basis.
- The interest rate is determined based on the client’s profile and may vary on an individual basis. Currently, the variable rate is approximately 6%.
- Bank attorney fees are approximately 2% to 2.5% of the purchase price, plus VAT. These fees may be reduced if the same law firm is used.
- The Bank’s commitment fee is 0.5% of the loan amount, while the valuation report typically costs 1% of the market value.
Personal requirements include, but are not limited to:
- A demonstrated foreign income stream is required to support mortgage repayment. For salaried clients, this typically includes job letters, pay slips, and three months of salary deposits. If your income is variable or includes significant bonuses, two years of tax returns may also be required.
- For self-employed clients, two years of company financial statements, along with two years of personal and corporate tax returns, are required.
- Current valuation / appraisal on Barbados property you own
- A current personal financial statement is required. If the property is being purchased through a company, financial statements and corporate tax returns for at least two years must be provided. The extent of financial documentation required will depend on the company’s revenue.
- Bank references letter
- Total debt servicing ratio not to exceed 40%
- Approval by The Central Bank of Barbados
- Sales agreement and current valuation report on the Barbados property you intend to purchase
- Two forms of Government issued identification
- A full credit report from your country of residence is required, and it must include a credit score.
- Additional documents may be requested depending on your individual circumstances and source of income.
The Institutions Offering US Dollar Mortgages Are:
- The Royal Bank of Canada
- First Caribbean International Bank
Local Barbados Dollar Mortgage / Finance:
When applying for a local Barbados dollar mortgage there are a few important points to note. Most financial institutions require the following documentation:
- Proof of identification, such as a Barbados ID or passport
- Proof of residential address, e.g., a utility bill
- Job letter, recent pay slip, and at least three months of salary deposits to your bank account.
- If self-employed, company financial statements and corporate tax returns for the past two years.
- Barbados property sales valuation report
- If you are building or renovating a property, a contractor’s estimate must be provided.
- A property sale agreement from the vendor, where applicable, must be provided.
In general, the terms and conditions for local mortgages are as follows (may vary among lending institutions):
- Interest rates range from 3.25% to 7.5%, based on the local market. You can use our Mortgage Calculator tool to estimate your potential monthly payments.
- Mortgages can cover up to 95% of the property value, with some institutions offering up to 100% financing.
- DSCR should not be more than 40% of gross personal income
- List of assets and collateral
- Evidence of full life insurance
- List of cash and bonds
- The property itself can be used as collateral to secure your mortgage
- Terms can vary:
- A deposit of up to 10% is required, although some banks offer 100% financing.
- Up to 35 years to repay
Generally, mortgages must be fully repaid before reaching the standard retirement age of 67 in Barbados, or 70 if self-employed. Your mortgage payments and term will be calculated based on your age and the years remaining before you turn 67 or 70. However, most institutions offer flexibility, and it’s recommended to consult with a mortgage specialist to determine the best loan term for your situation.
Relocating
Relocating to Barbados, or anywhere else in the world, can be an emotional experience. While you and your family may feel excited about the move, it’s natural to also feel apprehensive about the challenges of settling into a new country and leaving loved ones behind. Finding the right property is often the most important step in the relocation process.
Important Steps to Consider
- Understanding what properties are available and suitable
- Defining the type of home that the family needs
- Considering the option of shipping personal effects
- Understanding locations and distances on the island
- Managing security, services and other amenities
- Prioritizing important property characteristics
Understanding Home Choices
Barbados offers a wide variety of home choices such as single standing houses, townhouses, apartments and condominiums. The island offers gated communities and planned residential neighborhoods. It is worth noting that property type categories may have different meanings depending on your country of origin. The same real estate terminology could have different nuances: a cottage – a small house; a cottage – a small holiday home with limited amenities. There are also property designs that have different names depending on which part of the world you are from. For instance, what is a duplex? Is it a semi-detached property? As such, a wide variety of properties should be viewed based on a layout description rather than on a type.
Defining Your Key Criteria
Seeing an ample selection of properties will give you a good understanding of the product range and Barbados landscape. However, identifying key criteria and providing feedback to your agent upon each viewing will lead you to the property best suited to you and your family. Consider the housing options and amenities that are important to your lifestyle:
- Will a pool be important?
- Is a garden necessary?
- Are there plans to have a pet?
- Is walking distance to amenities important to you?
- Do you partake in certain hobbies or sports?
- Will you have a lot of overseas visitors?
- Will you be travelling often?
Shipping Personal Effects
You may be undecided as to whether you should ship your personal effects. While many wish to maintain some sort of familiarity with the importation of the family furniture, others choose leave furniture in the country of origin. The Custom and Excise Department allows items for the individual or household to be imported duty free once the items are a year or older and are imported within the first three months of arrival. It is recommended that a customs broker be retained to receive the shipment. If importing furniture is not an option or feasible, a smaller shipment of personal items such as photos, paintings, ornaments, lamps, books and linens can meet this objective.
Choosing the Right Location
Although our island is small – only 166 square miles – the winding roads and traffic congestion can create long drive times. Even though you might be accustomed to long drive times in your home country, a similar drive time in Barbados is typically a different experience. Therefore, your work location should be considered in relation to the home location. We strongly recommend test-drives to work during rush-hour traffic before signing a lease. Also, have children attending schools, you will need to factor in their transportation in the morning and afternoon. Most of the elementary schools are located in either one congested location on the south coast or in the countryside. The extracurricular activities are generally located on the south coast as well.
Factoring Security and Other Amenities
The security of the house and the neighbourhood is also of paramount importance. Although Barbados has low crime, necessary precautions should be taken. An informed evaluation of the area and review of the security of the home is required before the final decision on the home is reached.
If you are looking for home that offers a tropical garden and a pool, maintenance costs should also be considered. The costs associated with maintaining these choices must be fully investigated and negotiated prior to signing the lease. It is preferable for the renter and the landlord that these items remain the responsibility of the landlord by having the costs included in the monthly rental amount. These services are usually fixed costs under a service contract and the amount of weekly service times should be agreed on beforehand.
It is also recommended to ask for a utility bill review of the past three to six months of other variable costs such as electricity and water so as to avoid being surprised once the tenancy commences.
Making a Checklist
When you shop for any property, there will be compromises to make. Therefore, we recommend that you create a checklist, prioritizing the important characteristics of your ideal home. The list would include home design, neighborhood characteristics, commute time to work and schools and proximity to amenities. Rating these important points will maximize your success of finding the right home in Barbados.
Special Entry Permit
If you plan to stay in Barbados for an extended period, you’ll need to apply for a Special Entry & Reside Permit. The Barbados Immigration Department charges fees for these permits, which are valid for five years. Below are general eligibility requirements and cost guidelines. For more detailed information, please contact the Barbados Immigration Department.
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 Dependents
- US$150 per dependent
Getting an Appraisal
As a full-service real estate firm in Barbados and the Caribbean, we offer comprehensive consultancy services for a wide range of properties. Our Advisory Services include market appraisals, rental and portfolio reviews, as well as highest and best use studies. Whether you’re a first-time buyer, an experienced investor, or an existing property owner, our team of professionals is here to provide expert advice on the value of your real estate or potential investment opportunities.
The following list represents circumstances for which a valuation may be required:
- To set an asking price for the sale of a property
- To establish an offer price for the purchase of a property
- To secure a loan/mortgage
- For financial reporting
- For recoveries/foreclosures
- For divorce settlements
- For estate settlements
Our clients typically include private individuals, local and international banks, attorneys, corporate organizations and conglomerates, hotel groups, property funds and insurance companies.
Terra Caribbean is regulated by the Royal Institution of Chartered Surveyors (RICS) and our Advisory Services team includes three RICS Registered Valuers. We adhere to the valuation guidelines as set by the International Valuation Standards Council (IVSC).
If you are interested in requesting a valuation, please complete our request form
Rental FAQs
Whether you’re looking for the perfect long-term rental to call home or an ideal office space for your growing business, we’re here to assist you. Our team of experienced professionals will present a range of real estate options tailored to your budget and preferences. Explore our rental FAQ below for more details.
Some properties come furnished, with appliances only, or unfurnished. We will discuss your preferences during our initial meeting, so that your agent knows exactly what you need from your long-term rental.
Some owners are flexible and willing to make that adjustment, but we can verify this with the landlord before signing an agreement.
Pets are an important part of many people’s families, so we can check with the individual landlord to find out what pets, if any, they will allow on their property.
In our tropical island climate, it is not unusual to have small insects flying in and through our homes. Some properties are fitted with window screens to keep this to a minimum. If this is a concern, we can check each property you’re considering to find out if they have window screens.
Internet and high-speed connections are increasingly common in many homes. Your agent will be able to confirm the features of each property upon viewing.
Many landlords will cover the cost of the water bill but this is not a given. We can confirm with the potential landlord to see if they cover the cost of any utilities before signing your rental agreement.
This is entirely up to the landlord. However, we can validate this information prior to signing your agreement, or recommend someone who can handle this task.
Your move-in deposit varies depending on the landlord’s preference. Typically, you will be asked to pay the first and last month’s rent plus a security deposit; others may require some other combination of this.