Helpful tips for investing in Barbados real estate

If you’re planning to invest in a rental property or second home in Barbados, here are several helpful tips to keep in mind.

Purchasing properties in Barbados

The Government of Barbados welcomes investments from foreign buyers. There are no restrictions on overseas buyers who want to purchase Barbados real estate. Foreign buyers share the same rights as Barbadians including the right to buy beachfront land

Non-residents, however, require approval from the Barbados Exchange Control Authority to purchase a property. The transfer of funds used to purchase a property needs to be registered under the Central Bank of Barbados as well.

Individuals or companies can purchase Barbados real estate, which can help reduce costs.

The buying proces

Buying Barbados real estate is a relatively simple and straightforward process. Key steps involve:

• Searching for a property and making an offer.
• Conducting a title search through the assistance of a Barbadian attorney after your offer is accepted.
• Signing a contract prepared by the seller’s attorney.
• Paying a 10% deposit to secure the property. The deposit will be held in escrow by the seller and their attorney until the transaction is completed.
• Obtaining permission to buy property from the Barbados Exchange Control Authority.
• Paying the remaining 90% within three to six months upon conveyance of the property title

Rules on employment and taxes

Non-citizens are allowed to apply for employment in Barbados provided they acquire a work permit. Processing of permits typically takes around six to eight weeks. Barbados has an ever-expanding network of double taxation agreements with over 40 countries including the U.S., Canada, and the U.K. Residents of these countries not domiciled in Barbados are taxed only on their income collected from Barbados as well as any income remitted overseas

For companies looking to take advantage of low taxes and exchange of information treaties, Barbados is a prime choice. There are more than 4,000 International Business Companies (IBC) currently registered in the country.

Property sellers in Barbados are required to pay a 2.5% transfer tax and a stamp duty of 1%. Both buyers and sellers are responsible for paying their own legal fees, which usually range from 1.5% to 2% of the property’s sale price. In addition, there’s a yearly Residential Land Tax which varies depending on improved value up to 0.75% but does not exceed USD $30,000.

Find the perfect property in Barbados today!

Browse the best selection of investment properties and vacation homes in Barbados today by working with One Caribbean Estates, the top resource for Barbados real estate. With over a billion in sales achieved in Barbados alone, you can count on the team’s wealth of experience and deep knowledge of the market to realize your real estate goals.

Get in touch with One Caribbean Estates’ elite team of experts today at +1.246.620.4105 or leave a message here.