and Selling Property in Barbados:
The information shown below is a guide only and while we
have endeavored to show accurate information we do not guarantee
you are Buying a Property
There is no Property Transfer Tax for buyers.
Buyers Legal Fees - Approximately 1.5% of the Purchase Price (plus
Mortgage Down Payment - Usually a minimum of 10%, but can be as
low as 0%.
Mortgage Repayment Time - Up to 30 Years or until the borrower
reaches 65 years of age.
Mortgage Interest Rate - Range from 6% to 9%
Mortgage commitment fee and negotiation fee - Ranges from 0.5%
Life Insurance - This is usually required if you need a mortgage.
Annual Land Tax - On the initial $190,000 -
On the next $310,000 -
On the next $750,000
On the excess of $1,250,000 - 0.75%
For additional information please click on the following link:
Annual Property Insurance - 0.4% for a residence
0.6% for commercial buildings
0.9% for hotels
If you are
Selling a Property
Property Transfer Tax for land only - 2.5% of the Purchase Price.
Property Transfer Tax for house and land - first $125,000 exempt,
2.5% on the excess.
Legal fees - Approximately 1.5 to 2% of the Purchase Price (plus
Stamp Duty - 1% of the Purchase Price
Land Surveyor's fee - Approximately BDS$1,500.00 (plus 17.5%VAT)
Real Estate Commission - Normally 5% of the Purchase Price (plus
Early mortgage termination fee - There is normally a fee when
a mortgage is terminated before the agreed time period.
Nationals of Barbados
In 1998 the government abolished property transfer tax for non-nationals
It is necessary for a non-national purchaser to remit the purchase
price to Barbados in a foreign currency. It is then converted
into Barbados currency and registered with the Exchange Control
Authority of Barbados. This is to facilitate a subsequent repatriation
of funds if the property is sold.
Exchange Control Authority permission is also necessary for the
purchase itself. This is usually a formality once the purchase
monies have been registered.
US Dollar loans are available to non-residents from FirstCaribbean
International Bank for up to 60% of the value of the property
over a term of up to 15 years.
Property is passed by conveyance* of title,
which is evidenced by the recording of title deeds and certified
survey plans at the registry of title.
Once the purchaser has agreed to buy, and the vendor have 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.
The 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
*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.