Property
Buying Property in Barbados Property must pass conveyance of title, evidenced by the recording of the deeds and certified survey plans at the registry of title. A purchaser will require a registered Barbadian attorney to search the register and establish title to the property prior to the completion of sale. The parties sign a binding contract and the vendor’s attorney holds the deposit until completion, at which time the balance of the price is paid. Once an agreement has been made and a 10% deposit of the agreed price has been paid, then the deal must proceed or the deposit is forfeited. The title may be taken in a person’s name or through a corporate vehicle set up to own the property. It is possible for non-residents to purchase property through a company, that may be incorporated outside Barbados but which must be registered in Barbados. The sale of property by all persons, including citizens or permanent residents, is subject to property transfer tax of 2.5%, plus approximately 1% stamp duty. However, the first $125,000 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 approximately 1.5% to 2% of the sale price. The real estate agent’s commission fees are normally 5% of the sale. Both fees are subject to 15% VAT. Any owner of land in Barbados is required to pay an annual land tax at the following rates: First BB$125,000 = 0%, next BB$225,000 = 0.10%, next BB$500,000 = 0.65%, excess over BB$850,000 = 0.75% Following enactment of new legislation, there is a BB$60,000 cap on land tax rates, provided that the house is used exclusively as a residence by the person who owns the land upon which the house is erected. Barbados has attracted the attention of high-profile international companies such as Sotheby’s, Knight Frank and Savills. This is a great endorsement of real estate in Barbados as a safe investment for foreign purchasers.
106 | Barbados in a Nutshell