Buying Property in Barbados
When buying property in Barbados there are no major restrictions, however non residents need to obtain permission to buy property from the 'Barbados Exchange Control Authority' and ensure that funds for the purchase of property are derived from external sources. Financial arrangements such as mortgage, purchase price and deposit payments should be in place prior to entering a binding agreement.
All monies transferred into Barbados need to be registered with the Central Bank, this process enables the repatriation of the same amount of funds if and when the property is sold.
Buyers Guide to Property in Barbados
Purchasers are advised to use the services of a Lawyer who will check property titles to ensure that no hidden encumbrances are registered against the property.
Lawyer fees are approximately 1.5% - 2% of the property sale price and are subject to VAT.
Both buyer and seller are responsible for their respective Legal fees.
Generally the buyer of property in Barbados needs to pay a 10% deposit on signing the sales contract. Normally a Lawyer will generally hold the deposit in escrow with the balance of the monies payable on completion of the property purchase.
When buying a property in Barbados, sellers are subject to a standard commission fee to estate agents which is normally 4% of the sale price + VAT.
Non resident buyers can buy property in Barbados under their own name(s) or via a company which has been incorporated in a jurisdiction other than Barbados. The company must be registered in Barbados as an External Company in order to purchase the property in Barbados. This method allows the intended buyer of Barbados property the option to future sell the real estate ‘on shore’ or sell the shares of the External Company ‘off shore’ which does not incur local taxes and/or stamp duty.
Tips to Buying Land in Barbados
When buying land in Barbados, the seller will be required to produce a Certificate of Compliance from the Town and Country Planning Office (TCPO). This document certifies that the roads and services have been provided in accordance with planning rules.
If the purchaser is buying land in Barbados that already has a structure on it or if the buyer intends to develop a house then planning permission is required from the Town & County Planning Office. An application for same should be submitted to the TCPO prior to the renovation or development. Planning permission is usually granted subject to the environmental guidelines. Once development has been completed a certificate of compliance should be obtained from the TCPO.
If a structure is already present on the Barbados land the vendor will should prepare an affidavit to confirm that there have been no changes within the previous four years that would have needed permission from the Chief Town Planner.
If you would like to find a property in Barbados then start now by searching our online listings if you require advice about buying land in Barbados or sourcing a reputable lawyer then please do not hesitate to contact our team today!