Buying real estate in Barbados is not difficult but there are things you need to be aware of. There are no restrictions on non-Barbadians owning property, but there are certain formalities including getting permission from the central bank. Financing is not generally available to non-Barbadians so you will be required to bring the full amount of the purchase price with you, you must register the amount you are bringing in with the Central Bank so you can repatriate the funds if you decide to sell your property later.
Title conveyance must pass, and deeds and certified survey plans must be registered. Purchasers require a registered Barbadian to search the register and establish title to the property prior to the completion of the sale and it is essential that you use a reputable real estate agent and lawyer to handle these transactions.
Vendors pay a transfer tax of 7.5% on any value over $125,000 plus a sales commission of 5%. Legal fees for both the vendor and the purchaser usually run at about 1.5-2%. Once an agreement is signed and a 10% deposit is paid, the deal must proceed or the deposit is forfeited.
Owners pay an annual property tax of:
On the first $125,000 = 0%
Next $350,000 = 0.10%
Next. $500,000 = 0.65%
Excess = 0.75%
(All prices Barbados Dollars)
As with real estate everywhere the three most important things are location, location, and location, which means properties on the west coast are usually the most expensive, the south coast is next and the east coast and inland properties last.
If you don’t plan to spend all your time in your villa, rentals can provide a good return and cover your regular maintenance and management costs. Prices have risen steadily over the years and owners can expect a reasonable capital gain if they decide to sell later.
There are always new developments being built and depending on your tastes you will probably be able to find something close to a beach, a golf course, a tennis facility, a marina, a polo field or just about anything else you can imagine.
If you are interested in purchasing there are a number of well established local and international real estate agencies who can provide information about available properties and purchase requirements.