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.

Realtor
A real estate agent in Barbados will charge between 4-6% to sell a property. There are no fees for purchasing.
Attorney
An attorney in Barbados will charge between 1-2% to buy or sell a property.
Mortgage
If you're selling with a mortgage you may pay an early payment penalty. If you're purchasing with a mortgage you will have arrangement and bank attorney fees.
Transfer Tax
When selling a property in Barbados the government will charge you 2.5% transfer tax. There is no payment when purchasing.
Stamp Duty
When selling a property in Barbados the government will charge you 1% stamp duty. There is no payment when purchasing.
Services
You may encounter admin fees for private services engaged such as financial advisors, mortgage brokers, surveyors or valuers etc

Finance & Mortgages

Foreign buyers (Non-Nationals of Barbados) typically 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 strict requirements in order to obtain a loan. Generally speaking the banks offer 40-70 LTV on purchases valued US$250,000 or more. Although this opens up more opportunities, you will need a deposit while mortgage terms are typically full repayment and interest for 15 year terms charging 3-9% interest.

We heavily advise our customers needing finance to explore options in your home country first.

If you wanted to speak with our Barbados 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.

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.

Buying Property in Barbados 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 9%

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)

Yes, your attorney and/or accountant can arrange purchasing real estate within a LTD company.

Yes, we have a recommended attorney in Barbados that has helped many of our customers and we can happily introduce you and provide a quote for purchasing.

Yes, we have a recommended FX Broker that handles most of our clients funds. Our currency broker achieves better exchange rates than the banks and does not carry any transfer costs.