Buying property in Barbados

There are no restrictions on non-Barbadians buying and owning real estate on the island and there is no capital gains tax on the sale of real estate or estate duty. However, you must go through the formality of obtaining permission from the Central Bank.

Transaction Costs

The developer is responsible for sales commissions and Property Transfer Tax. Each party bears their own legal fees which are based on a scale ranging from 1.5% to 2.0% plus VAT at 15%. The developer can put you in touch with an on island attorney if required.

Interest to be Acquired

The purchaser will acquire a condominium interest governed by the Barbados Condominium Act comprising the apartment/penthouse, together with a share of the structure and common parts in proportion to the floor area of the apartment/penthouse, in perpetuity.

If preferred from a tax planning perspective it is possible to purchase an apartment/penthouse by purchasing the shares in a British Virgin Islands based company which owns the condominium interest. Further details from the developer or Focus Intenational Property.

Payment Schedule

Upon agreement of terms – a reservation deposit of US$ 10,000.

Upon exchange of contracts – a contract deposit of 10% of agreed purchase price (less reservation deposit) . Exchange of contracts to take place not more than 21 days after agreement of terms.

Upon Completion of purchase – the balance of purchase price. Completion to take place not more than 14 days after exchange.

(Retention – 2.5% of the purchase price to be held in escrow and released to developer on expiry of building retention period of six months.)

Property Management

Upon completion the property will be managed via a body corporate with each owner having a vote in proportion to the floor area of their apartment/penthouse. A management committee will be elected from the property owners.

The estimated service charge budget for the entire building for the first year following completion is approximately BDS$485,300, reflecting BDS$14.30 per sq ft annually (BDS$1.19 monthly).

The service charge which will be charged monthly includes the costs of management, security, insurance, maintenance of the building exterior and interior common areas, including the gardens and forecourt, lighting and water for the common areas and any other relevant expenses.

The service charge is allocated to each property in proportion to the occupied floor area and a schedule of allocations can be obtained from the developer or the appointed off-island agents, Focus International Property.