Buying & Owning Property in Barbados – The Ins & Outs

When it comes to purchasing real estate in Barbados, whether for residential or commercial purposes, our team is dedicated to ensuring a seamless experience. With many years of expertise in the Barbadian real estate market, our team of professionals is well-equipped to simplify every aspect of the buying process. This guarantees that the search for your ideal home, office, or plot of land is consistently efficient and stress-free. Delve into the key insights below for a comprehensive understanding.

Key Buyer Insights:

1. No Restrictions for Non-Nationals: Barbados welcomes non-nationals without any restrictions on purchasing properties.
2. No Special Visas Required: Non-nationals are not required to obtain special visas and are encouraged to make Barbados their home.
3. Procedures for Foreign Currency and Borrowed Funds: There are straightforward procedures for bringing foreign currency into Barbados and registering funds borrowed by non-nationals with the Central Bank of Barbados.
4. No Capital Gains Tax: Barbados does not impose Capital Gains Tax, providing investors relief from charges related to the appreciation in the value of their property.

Transaction Costs:

• Attorney Fees: Approximately 1% – 2.5%, plus 17.5% VAT.
• Land Tax: Buyers are expected to pay the proportionate amount of Land Tax.

Standard Purchase Procedure:

1. Offer and Acceptance: Initiate the process with an offer and acceptance; in some cases, a reservation agreement may apply.
2. Appointment of an Attorney-at-Law: Engage the services of an attorney-at-law to facilitate the legal aspects of the transaction.
3. Exchange of Contracts and Deposit: Exchange contracts for sale and make a 10% deposit to the vendor’s attorney-at-law within two to four weeks.
4. Conveyance and Remaining Balance: Complete the conveyance process and pay the remaining 90% balance within three to six months. For off-plan developments, stage payments based on construction progress may apply.

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Key Owner Insights

If you’re embarking on your first property purchase in Barbados, understanding the associated costs is crucial for a transparent view of ongoing expenses. Below, we outline the various expenditures you can anticipate.

Annual Costs:

1. Property Insurance:
   • Range: US$2.50 to US$3.25 per US$500
2. Contents Insurance:
   • Range: US$3.00 to US$3.75 per US$500
3. Land Tax:
   • Site Value – Unimproved Land:
     • < 4,000 sq. ft. – 0.8%
     • 4,000 sq. ft. – 1.0%
   • Improved Value – Residential:
     • First US$75,000 – 0%
     • US$75,000 but <US$225,000 – 0.1%
     • US$225,000 but <US$425,000 – 0.7%
     • US 425,000 – 1.0%
   • Note: Property tax capped at a maximum of US$50,000 on residences
   • Improved Value – All Other Properties – 0.95%
   • Rebates on property taxes are available but must be applied for, such as:
     • Pensioners
     • Agricultural Properties
     • Villa Properties

Monthly Costs:

1. Utilities:
   • Electricity, Water, Telephone, Cable
2. Fees:
   • Condo fees, if applicable (see chart for a guide by property)
   • Property/Home Owners Association fees where applicable
3. Maintenance:
   • Pool and garden maintenance, if applicable
4. Property Management:
   • Management Fee – minimum of US$250
5. Rental Agent Commission Fees:
   • Long Term Rentals:
     • 1 month’s rent – 1st year
     • 1/2 month’s rent – 2nd year
     • 1/4 month’s rent – 3rd year
   • Short Term Rentals:
     • 10% to 30% commission payable on short-term rentals

Feel free to reach out to our team for any clarifications or additional information regarding these costs. We are here to assist you throughout the process.

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