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Blog - Port Ferdinand

Buying Property in Barbados

Wednesday, September 20, 2017 | By Terra Caribbean
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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 Property 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

 

Click here to search Commercial & Residential Properties for Sale in Barbados

 

 

 Buying Property in Barbados

 

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

 

Click here for more information on how we sell your property

 

 

 Buying Property in Barbados

 

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

1. Long Term Rentals

• 1 month rent - 1st year

• 1/2 month rent - 2nd year

• 1/4 month rent - 3rd year

2. Short Term Rentals

• 10% to 30% commission is payable on short term rentals

 

Click here to learn more about our Facility Management Services in Barbados

 

 

 Sapphire Beach1.jpg

 

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

 

Click here for more information on relocating to Barbados

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