Buying Property Guide Barbados Discover the benefits of buying property in Barbados with R&M Property Services. We are proud to offer our expertise.
Property Transfer Tax: Nil
Proportionate part of Land Tax: varies depending on property value and transaction time
Out-of-Pocket Expenses: Approximately BDS$300
Foreign currency purchase: The purchase price must be remitted to Barbados in foreign currency and registered with the Exchange Control Authority of Barbados to facilitate repatriation. Permission from the Exchange Control Authority is required for the purchase.
- Legal Fees:
- VAT of 17.5% payable on legal fees
- Up to $25,000 – $1,000
- Next $75,000 – 2.5%
- Next $100,000 – 1.5%
- Next $300,000 – 1.25%
- Thereafter – 1%
- Foreign ownership restrictions:
- Non-residents must obtain permission from the Central Bank of Barbados before purchasing a property. This is mandatory and failure to do so will void the purchase.
- Central Bank registration: All money brought into the country must be registered with the Central Bank of Barbados.
- Legal representation: It is recommended to hire a lawyer to assist with the Central Bank and purchase transactions.
- Contract signing: After the price agreement, the purchaser and vendor sign a contract prepared by the vendor’s attorney. A 10% deposit is paid by the purchaser and held in escrow until completion.
- Property conveyance: Property passes by conveyance of title, recorded at the registry of title.
- A registered Barbadian attorney is required to search the title and ensure that there are no encumbrances or impediments to the sale.
- Title search: Legal representative of the purchaser will search the title, taking 3-6 months, before the completion of the sale.
- Government stamp duty: Vendor is responsible for paying the transfer taxes and government stamp duty.