Buying Property in Barbados?
 

Hello,

Can anyone tell me the fees that have to be paid when purchasing a property in Barbados? Are there any taxes etc....?

BQ

Re: Buying Property in Barbados?
 

Firstly you should seek a local attorney for advice on the procedure of buying real property in Barbados, restrictions on non-nationals of Barbados buying and owning real estate in Barbados and Capital Gains Tax on the sale of real estate.
A purchaser legal fees are between 1.5% and 2.0% plus VAT @ 15%.

If a non-national proceeds with a purchase in Barbados, they should formally obtain permission through the Central Bank of Barbados, in order to register the funds being brought into the island in the event they, the purchaser may want to repatriate such funds in the future.

Re: Buying Property in Barbados?
 

Firstly, apologies for posting a link, didn't realise that was a big no no.

Here are some tips from our website:

Fees you might be charged (mostly legal tasks)

• A 10% deposit is paid by the purchaser to the vendor’s lawyer on the signing of the Agreement
  
• An investigation of title is carried out by the purchaser’s attorney-at-law, to whom copies of the prior title deeds are to be provided
  
• If applicable, the approval of the Exchange Control Authority of the Central Bank of Barbados is applied for before completion of the sale and purchase
  
• If applicable, the line-marks to the property are pointed out to the purchaser
  
• The conveyance is prepared by the vendor’s lawyer and is perused by the purchaser’s lawyer. Once approved, the vendor’s attorney-at-law has the conveyance signed by his or client
  
• At closing, the original conveyance and prior title deeds and plan, along with other necessary documents, are provided to the purchaser’s lawyer in exchange for the balance of the purchase price
  
• The purchaser’s lawyer has the conveyance recorded at the Land Registry of Barbados.

Taxes associated with purchasing

Property Transfer Tax (“PTT”) and Stamp Duty are payable by the vendor on the transfer of property. Stamp Duty is assessed at the rate of 1% of the consideration in the conveyance, while the rate of Property Transfer Tax is 2.5% of the value of the property (with an exemption on the first BDS$150,000.00 where there is a building on the land). PTT and Stamp Duty are also payable on a sale of shares of a local company at the same rates. PTT on a sale of shares is based on the net value of the company.

Land tax is payable on an annual basis. Land tax bills are issued in October of every year. If the land tax is paid within thirty days of the date of the land tax bill, a 10% discount will be applicable. If the land tax is paid within sixty days of the date of the land tax bills, a 5% discount will be applicable. Land tax which is not paid by March 31 of the financial year for which it is due is subject to a 5% penalty plus 1% simple interest on the tax for each month during which any tax and penalty remains unpaid. The penalty is not payable until the expiry of sixty days after the date of the land tax bill.