Best way to hold title to property in Barbados

Why you should hold tittle to your Barbados property in a company

Simply put, your Barbados property should be held in a company so that when you sell your property you don’t have to pay transfer tax. Why? Because the purchaser is buying a company and not a property directly. Yes, the company owns the underlying property but since the property is not being purchased directly it can’t be taxed.

Transfer tax

Prior to 2008, transfer tax was 7.5% of the purchase price of a property in Barbados. The savings were so significant that it would have been a foolhardy mistake not to own your property in a company. In 2008, the government reduced the transfer tax to 2.5%.

Still, 2.5% of a $1MM property is $25,000, whether the economy is good or bad, that is a savings that most people won’t neglect.