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Buying a Property in Barbados
Purchasing a property abroad can be a daunting process. We aim to make it a stress-free and enjoyable transaction.
Typical Costs
When buying or selling a property in Barbados it’s essential to understand any costs you may incur in the process.
Finance & Mortgages
Foreign buyers (non Nationals of Barbados) typically have to purchase with cash. The source of cash can come from a variety of places, for example personal savings, inheritance, pension or releasing equity from existing assets.
Regardless of the source, it is very important to make sure the funds are readily available as having the cash locked in bonds or accounts that need notice to release can cause delays, if not aborted sales.
Banks in Barbados can sometimes lend to non-nationals however lenders have extremely strict requirements in order to obtain a loan. Generally speaking the banks offer 40-60 LTV on purchases valued US$250,000 or more. Although this opens up more opportunities, you will need a large deposit while mortgage terms are typically full repayment and interest for 15 year terms charging 8-9% interest.
We heavily advise our customers needing finance to explore options in your home country first, for example it will be quicker, easier and cheaper to remortgage your home in order to release equity and become a cash buyer.
If you wanted to speak with our mortgage broker please reach out to [email protected]
Regardless of the source, it is very important to make sure the funds are readily available as having the cash locked in bonds or accounts that need notice to release can cause delays, if not aborted sales.
Banks in Barbados can sometimes lend to non-nationals however lenders have extremely strict requirements in order to obtain a loan. Generally speaking the banks offer 40-60 LTV on purchases valued US$250,000 or more. Although this opens up more opportunities, you will need a large deposit while mortgage terms are typically full repayment and interest for 15 year terms charging 8-9% interest.
We heavily advise our customers needing finance to explore options in your home country first, for example it will be quicker, easier and cheaper to remortgage your home in order to release equity and become a cash buyer.
If you wanted to speak with our mortgage broker please reach out to [email protected]
Inheritance
There are no restrictions to foreign nationals owning and/or inheriting property in Barbados. If the estate consists of property in Barbados then the laws of Barbados are applicable.
Something that entices foreign buyers to Barbados is that there are no inheritance or gift taxes! You will however be liable to property transfer tax if transferring real estate to another person.
Something that entices foreign buyers to Barbados is that there are no inheritance or gift taxes! You will however be liable to property transfer tax if transferring real estate to another person.
Rental Income
The amount of tax paid varies depending on the level of revenue generated, but property rental income is taxed at 15%.
Tax Returns are due annually with deductible expenses.
Note, we’re not accountants and therefore you would need to seek professional advice.
Tax Returns are due annually with deductible expenses.
Note, we’re not accountants and therefore you would need to seek professional advice.
FAQs
There are no restrictions on non-nationals purchasing property in Barbados. However, you must apply for permission from the Central Bank of Barbados to register any money brought into Barbados. Your attorney will do this on your behalf.
A deposit of 10% is required on exchange (unless otherwise agreed).
No! The seller is responsible for paying stamp duty (unless the property is held in an offshore company, in which case there is no stamp duty).
The average purchase/sale in Barbados should take 2-3 months but we advise clients to allocate 4-5 months.
Capital Gains Tax is 0%
Corporation Tax is 25%
Income Tax is 12.5% Basic Rate (<BBD$50,000)
Income Tax is 28.5% Higher Rate (>BBD$50,000)
Property Transfer Tax is 2.5%
Stamp Duty Tax is 1%
Value Added Tax (VAT) is 17.5%
No, however it may be easier to keep money in a Barbados Bank Account in order to pay regular bills (such as land tax, utility bills, wifi, tv etc)
Explore Our Featured Listings
Our finest properties for sale in Barbados. Whether you’re looking for a holiday home or an investment opportunity, these properties exemplify the luxury and beauty that Barbados has to offer.
