Welcome to Barbados!
You have been visiting the island and have now decided that you would like to purchase a property in Barbados. This article seeks to identify the top things you need to be aware of when purchasing a property in Barbados as a Non-Resident client:-
- Under Central Bank you are classified a Non-Resident if you are making your income outside of Barbados. This is an important point because they are some returning nationals that think because they are Barbadian born they would not be classified as Non-Resident. This is not so – Non-Resident financing applies to anyone who makes their income outside of Barbados.
- As a Non-Resident you are free to borrow in either USD$ or BDS$. Each currency attracts a different interest rate as USD financing is tied to the New York Prime while BDS financing is tied to our local prime. At RBC we can provide financing in either currency. Please make sure that you are selecting the best currency for your purchase transaction as it would keep your interest cost to a minimum.
- If you have decided to purchase a property cash you need to ensure that as the funds enter Barbados that they are registered with the Central Bank as incoming foreign exchange. Why is this important? If you want to in the future sell the same property and move the funds outside of Barbados its this registration of funds that would make this process a lot easier. You can open a Bank account at RBC to assist with this registration process.
- You can purchase your property in a Holding Company name if you so desire. Many Non-Residents think that they can only purchase the property in their personal name – this is not so you can purchase your property in a holding company. RBC can assist you with identifying legal professionals who can assist with this process.
- You can get financing from local banks in Barbados secured by the said property. This allows you to utilize your assets accordingly. You do not need to use other properties overseas to seek financing for this local purchase. Let this property hold its own and therefore free up your other assets for other investment opportunities. RBC has a Non-Resident Financing product that can provide the necessary financing secured by the property.
- You can get a bank account in Barbados. Once you have purchased a property in Barbados this purchase can be used to form a connection to the island and therefore allow you to open a bank account in Barbados. Having a bank account in Barbados allows you the opportunity to manage your property’s expenses from your home country via an online platform. RBC has an amazing online platform that can work for you!
- As a Non-Resident you will need to seek Central Bank approval to borrow funds from a local bank in Barbados. RBC can assist with this approval process.
Please note these points are up to date and relevant as at the writing of this article.
There are other points that should be considered when purchasing a property in Barbados so I invite you to message me if you have made this decision so that I can assist you with this process.
Thank you for taking the time to read this article. Please feel free to comment below any questions you may have and as usual until next time LinkedIn family – take care!
If you have any questions please do not hesitate to contact us at support@afbconsultingservices.com