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Barbados property sales from the professionals 

 Purchasing Barbados property can be very time consuming and labourious without the help of a professional like Terra Caribbean. Terra Caribbean has been specialising in Barbados property sales for many years and as a consequence has gained a vast amount of experience.

The property sales process can be made much easier should you make the right contacts and work with credible professionals that will guide you not only to the best Barbados properties for your budget and lifestyle; but also take you through the steps to acquiring what is likely most buyers largest investment outside of their homeland.  

Understanding the Barbados tax and legal structure, finding a suitable financial institution and eventually having a local entity to manage your property investment will all be made easier by appointing a Barbados sales agent you are comfortable with and trust to have your interests in mind.

Here are a few things you should know about the Barbados property market:

  1. There are NO restrictions to non-nationals purchasing Barbados properties.  

  2. There are no special visas required and non-nationals are welcomed to make Barbados their home.

  3. There are some simple procedures that involve Foreign currency being brought into Barbados, as well as funds borrowed by non-nationals which should be registered with the Central Bank of Barbados. 

  4. There is no Capital Gains Tax in Barbados so investors are not charged for the appreciation in the value of their property.


Barbados Property Sales

Transaction Costs:

  • Attorney Fees are approx. 1% - 2.5% plus 17.5% VAT

  • You will be expected to pay the proportionate amount of Land Tax

Standard Purchase Procedure:

  • Verbal offer and acceptance (in some cases a reservation agreement may apply)

  • Appointment of an attorney-at-law 

  • Exchange of contracts for sale and payment of a 10% deposit to the vendor’s attorney-at-law within two to four weeks

  • Conveyance and payment of 90% remaining within three to six months (in the case of off-plan developments, stage payments based on construction progress may apply)

US Dollar Mortgage / Finance:

US Dollar mortgages 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:

  • Between 60% - 70% LTV up to US $2.5 million

  • 50% LTV in excess of US $2.5 million

  • Minimum loan value if approx. US $250,000

  • Amortization ranging between 5 to 25 years

  • Rate LIBOR plus between 2.5% to 4% - N.B. Rate can change based on market forces

  • Bank’s Attorney Fees are approx. 1% - 2.5% plus 17.5% VAT

  • Administration / Arrangement fees are generally 1%

  • Personal requirement include, but are not limited to:

    • Demonstrated foreign income stream must be provided to support repayment of mortgage (Job Letters / Income Tax returns)

    • Current valuation / appraisal on Barbados property you own

    • Current personal state of affairs, and if a company most banks require audited financial statement from a reputable Chartered Accounting firm.

    • Bank references

    • 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

  • The institutions that offer US Dollar Mortgages are:

    • The Royal Bank of Canada

    • Scotiabank

    • FirstCaribbean International Bank

Local Barbados 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 Barbados ID or Passport

  • Confirmation of your residential address eg: utility bill

  • Job letter from your employer and a recent pay slip

  • If self employed you will have to present financial statements for the company

  • Bank statements, especially for new customers

  • Barbados property sales valuation

  • If you are building on the property  or renovating then a contractor’s estimate

  • An agreement of property sale from the vendor selling the property (where applicable)

In general the terms and conditions for local mortgages are as follows (may vary among lending institutions):

  • Interest rates between 6 - 8.5%. This however, is subject to change based upon the local market. You can use our Mortgage Calculator tool to get a ball-park of what you can expect to pay each month.

  • Mortgage cover ranges from 95% of the total amount, however, some institutions do offer 100% coverage. 

  • Housing Service Ratio (HSR) should not be more than 40% of gross personal income

  • Collateral

    • The property itself can be used as collateral to secure your mortgage

    • Full Life Insurance

    • Cash and Bonds

  • Terms can vary:

    • Up to 10% deposit required

    • Up to 35 years to repay 

    • Generally lending institutions require that mortgages be repaid before you reach 70-years of age. This means that your mortgage payments and term will be are calculated depending on your age and the number of years before you turn seventy. However; there is flexibility with most institutions and it is always better to meet with a mortgage financer regardless of your age; to determine the term of your loan.

    For further information on Barbados property sales please contact one of our professional advisors - or +246 434-9000