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Land and property are available without restrictions to non-nationals. Any non-Barbadian wishing to purchase property on the island, must initially get permission from the Central Bank of Barbados.
This is simply a formality. |
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In Barbados, property passes by conveyance of title, evidenced
by the recording of the deed and certified survey plans at
the registry of title.
The title may be taken in an individual’s name or through
a corporate vehicle set up to own the property. It is usual in the
case of non-residents of Barbados that they purchase property through
a company, which may be incorporated outside Barbados but must be
registered in Barbados.
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 in escrow until completion of the sale
when the balance of the purchase price is paid and the title passes
to the purchaser by way of the conveyance. Purchasers should be
aware that once an agreement has been made, and a 10% deposit of
the agreed price paid, the deal must proceed or the deposit is forfeited.
The
vendor pays a property transfer tax of 7.5% and each party
bears their own legal fees, which average between 1.5% to
2% . |
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The
only other cost for the vendor is a sales commission, usually
of 5%. From the purchaser’s perspective, transfer
costs are usually 2% or less. |
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All
money brought into Barbados must be registered at the Central
Bank which, in turn, then guarantees repatriation if the property
is sold. The obvious importance of this procedure makes it essential
to conduct any transaction through a reputable real estate agent
and a local attorney-at-law.
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TAX & REAL ESTATE INFORMATION |
An annual tax is charged on property. The assessment is made
in the improved value, or if underdeveloped, on the site value. These Government
valuations are reviewed every three years. |
Property Tax |
A Resident or Non-Resident will pay 7.5 percent Transfer Tax to sell a property.
The
Vendor has to pay 1 percent stamp duty when selling.
Any
transaction involving a Non-Resident has to have the approval of the Central Bank.
Individual
Ownership - Locally Controlled Companies |
Improved Property Value Tax Rate |
Residences:
Up
to $200,000 - 0.2 percent
$200,000
to $500,000
- 0.7 percent
Over
$500,000 - 1.2 percent
Properties
other than residences: - 0.7 percent |
| If
you are Selling a Property |
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Property
Transfer Tax for land only – 7.5% of the Purchase Price.
Property
Transfer Tax for house and land - first $125,000 exempt, 7.5%
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) |
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Contact Central Projects for information on the showcased properties.
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