Fees associated with buying property in Barbados

What are the fees attached to buying and selling property in Barbados

The transaction costs associated with buying like selling are attorney fees, which are at the same rate of 1.5%-2% of the purchasing price, plus VAT which stands at 15% in Barbados. Additionally there is proportionate among of Land tax, this amount will differ as it is dependent on the value of the property at the time of the transaction. There are no property transfer tax for the buyer to pay in the transaction.

Many buyers opt for mortgages to finance their purchase of property in Barbados. For non-nationals, US dollar mortgages are available, from the offshore sector of the local banking industry following wide terms as listed below:
- 70% LTV up to US $2.5 million
- 60% LTV- US $ 2.5 million to $5 million
Terms up to 20 years
Rate – LIBOR plus 3 % ( rate can change based on market forces)

According to the BEVA the expenses incurred by a Purchaser (there is no distinction between National or Non- National purchasers due to recent amendments to the Barbados legislation) will be as follows:
Property Transfer Tax – Nil
Proportionate part of land tax – This amount will vary depending on the value of the property and the time of the transaction.
Out-of-Pocket Expenses – BDS $300 (Approximately)

Legal Fees are legislated as follows:
1. Up to $25,000 – $1,000
2. On the next $75,000 – 2.5%
3. On the next $100,000 – 1.5%
4. On the next $300,000 – 1.25%_
5. Thereafter – 1%
VAT of 15% is payable on legal fees

It is necessary for a Non-National purchaser to remit the purchase price to Barbados in foreign currency, after which it will be converted into Barbados currency and registered with the Exchange Control Authority of Barbados to facilitate a subsequent repatriation. Exchange Control Authority permission is also necessary for the purchase itself. This is usually readily obtainable once the purchase monies have been registered.