There are no restrictions to owning property on the island. Any non-Barbadian wishing to purchase property on the island must initially get permission from the Central Bank of Barbados. This is simply a formality.
All money brought into Barbados must be registered at the Central Bank, which, in turn, guarantees repatriation when the property is sold.
LEGAL ISSUES
In Barbados, property is passed by conveyance of title, evidenced by the recording of the deeds and the certified survey plans at the registry of title. Once the purchaser has agreed to buy, and the vendor has agreed to sell, a legal contract has to be drawn up by a lawyer in Barbados, which provides for a deposit to be made to secure the property. The vendor's attorney holds this deposit in escrow until completion of the sale when the balance of the purchase price is paid and the title passes to the purchaser by way of the conveyance.
A purchaser will require a registered Barbadian attorney to search the register and establish title to the property prior to the completion of sale to ensure that there are no encumbrances, charges, encroachments or other impediments to the sale.
It will normally take 2-3 months for all the legal issues to be resolved.
The title may be taken in an individual’s name or through a corporate vehicle set up to own the property. It is usual in the case of non-residents of Barbados that they purchase property through a company, which may be incorporated outside Barbados but which must be registered in Barbados.
Purchasers should be aware that once an agreement has been made, and a 10% deposit of the agreed purchase price has been paid, the sale must proceed. Alternatively, the deposit will be forfeited.
The period between payment of deposit and completion is likely to be at least 3 months.
SELLER'S INFORMATION
The Vendor pays a property transfer tax of 2.5% of the purchase price and a government stamp duty of 1%. There is no Property Transfer tax payable by the buyer. Each party bears their own legal fees, which average between 1.5% to 2% of the purchase price. Legal fees are subject to 15% VAT.
FOR NON-RESIDENTS OF BARBADOS
Financing is available for individuals or corporations who are non-resident under Barbados Exchange Control regulations, subject to being able to prove adequate income stream in dollars or other hard currency to service the mortgage. US Dollar loans are available to non-residents from First Caribbean International Bank for up to 60% of the value of the property over a term of up to 15 years.
ANNUAL LAND TAX
An annual tax is charged on property. The assessment is made on the improved value, or if undeveloped, on the site value. These Government valuations are reviewed every three years. Please see guide below:
- 0% on the first Bds$125,000
- 0.10% on Bds$125,001 to Bds$350,000
- 0.65% on Bds$350,001 to Bds$850,000
- 0.75% on Bds$850,001 and over
- .60% Unimproved Value of Land
- .65% Commercial Properties
*Conveyance - A written document, which transfers property from one person to another.
**Escrow - The money is held in the attorney's bank account until the completion of the sale.
