A Guide to Buying Real Estate in Barbados

Caribbean islands have breathtaking beaches, lower costs and higher ease of living, and friendly natives- making them great prospective real estate investments.

Barbados is the best place to invest, especially since it meets all of the criteria listed above.

So, whether you're looking at a Barbados luxury real estate or simply a plot of land for sale in Barbados, here's an in-depth guide to the legal know-how of buying real estate in Barbados.

• Permissions Required

Foreign ownership is generally unrestricted, except for one formality: nonresidents must obtain permission from the Barbados Central Bank to purchase a property. Any money brought into Barbados by foreign buyers must be registered as well. This is merely a formality, but failure to do so will result in the cancellation of your purchase.

• Transfer Of Title

Property in Barbados is relocated by transfer of title, which is documented by land title and certified census initiatives recorded at the registry of title. Before signing the papers, a buyer will need a registered Barbadian attorney to scan the register and establish ownership of the property.

• Calculate Your Finances:

In addition to the costs of purchasing the plot of land for sale in Barbados, there are a few other token costs to consider when estimating your finances.

• Above a 15% VAT, lawyer fees range from 1.5 to 2% of the purchase price 

• Realtor fees range from 5% to 8% of the sale price.  

• There is no stamp duty for the buyer 

• 2% of the purchase price in legal fees  

• Keep In Mind The Resale Costs

When you sell your Barbados luxury real estate, you will not be taxed on the earned income.

However, there are a few seller taxes that can add up, so you need to be aware of that before investing.

• When it comes to the seller's property transfer tax: 10% of the total purchase price    

• Stamp duty is 1% of the purchase price. 

• On the sale of a property, the seller must pay a land tax of 2.5 percent of the purchase price.

Conclusion

A property in the Caribbean islands of Barbados is undoubtedly a great investment, but it's always best to do your due diligence and be armed with the legal know-how before going all in.

Hiring the right real estate agent can help you navigate the red tape, get your permissions in order, and even save you some extra costs.