There is no restrictions on the purchase of property in Barbados by persons who are not citizens or permanent residents. These funds must be registered with the Central Bank of Barbados and the permission of the Exchange Control Authority obtained for the sale or purchase of property by a non-resident whether such non-resident is a Barbadian citizen or not.
The sale of property by all persons including citizens or permanent residents is subject to a property transfer tax of 2.5% plus approximately 1% stamp duty. However, the first BB$150,000 (US$75,000) of the sale proceeds is exempt from Property Transfer Tax provided that there is a building on the property. Attorney’s fees for both the seller and the purchaser are on a sliding scale generally ranging between 1% and 2% depending on the sale price of the real estate.
The scale is:-
Up to $25,000 $750
On the next $75,000 2%
On the next $100,000 1.5%
On the next $300,000 1.25%
Thereafter 1%
Note that this is only the minimum fee that may be charged.
Note that in the case of registered land the minimum fees for the sale of registered land is 2/3 or 1/3 of the cost for a normal conveyance (above) depending on if acting for vendor or purchaser. However, the vast majority of land on the island is not registered as yet.
The real estate agent’s commission fees are normally 5% of the sale. Both fees are subject to 17.5% VAT. A deposit of 10% is typically due upon the signing of the purchase agreement with the balance payable on completion of the purchase.
Looking to purchase property in Barbados whether via cash or a loan? Send me an email so that I can assist you with the process whether it be by opening bank accounts or financing the loan.
If you have any questions please do not hesitate to contact us at support@afbconsultingservices.com
Source: Business Barbados