Buying property in Barbados
Thinking of buying property in Barbados. Here are some frequently asked questions about buying property in Barbados.
Are there any purchasing restrictions on non-nationals buying property in Barbados?
No, but non-residents must apply for permission from the Central Bank of Barbados to buy a property. This is generally a formality which your lawyer will deal with. Foreign buyers need to register any money brought into Barbados. This is not necessary where an off shore company owns the property and the shares in the off shore company are purchased.
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 15%.
How much do real estate agents/relators usually charge on sale of a property in Barbados?
They usually charge between 3% and 5% depending of the sale price achieved depending on whether the listing is exclusive to them or not.
What deposit is usually required on exchange of contracts?
10% is the usual.
Is stamp duty payable on the purchase of a property in Barbados?
No stamp duty is payable by a buyer on purchase of a property. Stamp duty is however payable by a seller on sale. It is payable by a seller at the rate of 1% of the sale price.
Are there any annual property taxes in Barbados?
Yes. The amount of annual land tax will depend on the value of the property. Your local lawyer should be able to advise.
Is Capital Gains Tax payable locally?
How long does the sale process in Barbados usually take?
On average the legal process takes around 3 months. It is not necessary for the buyer or seller to remain in Barbados during the sale process.
How much does property insurance in Barbados cost?
It is usually charged at the rate of approximately 0.4% of the value of the property 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 should be able to advise you on the pros and cons of buying the shares in a company that owns a property in Barbados.
Can I get a mortgage in Barbados?
Mortgages are usually available for around 50% to 70% of the property value. Mortgage terms are usually for a maximum of 15 years. You will need to show that you can make repayments from personal funds. Any rental income from the property to service the mortgage is usually disregarded by lenders when assessing affordability.
The mortgage process can be slow and foreign buyers are advised to line up funding (whether within or without 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. These can take some time to obtain (around 6-8 months). It is advisable to make applications as soon as possible.
If I rent my property on holiday rentals can I find managers to look after it?
Yes, there are many professional firms who will manage your property if you choose to rent it out (whether on short term rental or long term rental). Many owners in Barbados do rent out their properties to cover the running costs and to provide spending money in Barbados.
If you are looking for holiday rentals in Barbados visit Barbadosdreamvillas.com
For long term rentals visit longtermrentalsbarbados.com
Our team in the UK and our team in Barbados will be happy to help you with any further questions on buying property in Barbados. Just contact us.
Barbados : Indigo Courtyard, Holetown
UK:40 Knutsford Road, Alderley Edge, SK9 7SF