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When looking at purchasing property in Barbados, It
is good to familiarize oneself with the local laws and
ins and outs of Real Estate. This is to ensure that
the transaction goes as smoothly as possible.
Little errors could drastically change the outcome,
time it takes to complete the transaction, or if the
property is sold/purchased at all.
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There is no Property Transfer Tax for buyers.
Buyers Legal Fees - Approximately 1.5% of the Purchase
Price (plus 15% VAT).
Mortgage Down Payment - Usually a minimum of 10%, but
can be as low as 5%.
Mortgage Repayment Time - Up to 30 Years or until the
borrower reaches 65 years of age.
Mortgage Interest Rate - Range from 7.75% to 9%
Mortgage commitment fee and negotiation fee - Ranges
from 0.5% to 3%.
Life Insurance - This is required if you need a mortgage.
Annual Land Tax - Up to $350,000 - 0.2%
- Between $350,000 and $850,000 - 0.7%
- Over $850,000 - 1%
Annual Property Insurance - 0.4% for a residence
- 0.6% for commercial buildings
- 0.9% for hotels
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Property Transfer Tax for land only - 5% of the Purchase
Price.
Property Transfer Tax for house and land - first $125,000
exempt, 10% on the excess.
Legal fees - Approximately 1.5 to 2% of the Purchase
Price (plus 15% VAT).
Stamp Duty - 1% of the Purchase Price
Land Surveyor's fee - Approximately BDS$1,500.00 (plus
15%VAT)
Real Estate Commission - Normally 5% of the Purchase
Price (plus 15% VAT)
Early mortgage termination fee - There is normally a
fee when a mortgage is terminated before the agreed
time period.
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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
Barclays bank and CIBC for up to 60% of the value of
the property over a term of up to 15 years.
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