For buyers, there is no Property Transfer Tax.

Legal fees for buyers approximately 2 – 2.5% of the purchase price (plus 17.5% VAT).
stamp duty of 1%

OFF SHORE MORTGAGES

Timeframe for Local Mortgage Repayment: Up to 30 Years or till Borrower Turns 65 years of age.
Down payments for non-national mortgages often range from 30% to 50%.
Maximum 15-year non-national mortgage repayment period

Fees for mortgage commitment and negotiation: 0.5% to 3%.
If you require a mortgage, life insurance is necessary.
Annual Property Insurance: 0.4% for a home, 0.6% for businesses, and 0.9% for lodging establishments. These rates can be impacted by additional factors like geography, property valuation, and use.

ADDITIONAL IMPORTANT INFORMATION

1. There are no limitations on non-nationals buying real estate in Barbados.

2. There are some formalities for bringing foreign currency into the island as well as for mortgages from outside the country. They must all register with the Barbados Central Bank.

3. Barbados does not impose a capital gains tax. Investors are not charged for the increase in their property’s value.

CHECK LIST:

• For the purpose of knowing what you can afford, think about pre-qualifying with your lender.
• Copies of the title deeds and title certificate (be sure the originals will be delivered upon completion).
• Copy of the property’s lot plan; this shouldn’t be older than 20 years; make sure the original will be sent upon completion.
• A copy of the most recent certificate, receipt, and land tax bill.
• A copy of the most recent water bill and, if appropriate, the receipt.
• A copy of the most recent electricity bill and, if appropriate, the receipt.
• Copies of all Town Planning requests, authorizations, authorized plans, and certificates of compliance pertaining to the property.
• Verify that using the property as you intend is not prohibited by covenants.
• Copies of all leases for the entire property or any individual components, if relevant.
• If the property has a building, it should be covered by a property insurance policy. It should be in place before you sign the sale and buy agreement, whether you want to use the vendor’s policy or create your own (which is advised).
• Policy on life insurance (as required by your lender), a copy of your certificate of NIS clearance and one for the potential vendor,
  copies of your and the potential vendor’s BRA clearance certificates.
• A vendor’s certificate of input tax clearance.
• Verified copies of all corporate paperwork if you intend to own the property through a corporation (decide beforehand).
• Think about getting a boundary certificate from your own independent land surveyor.
• Make sure a civil engineer, electrician, and plumber have examined any buildings.

LAND TAX

HOW LAND TAX IS WORKED OUT;

land that has been improved for residential use

0% on real estate up to $150,000
0.1% on the excess of the increased value over $150,000 but not more than $450,000
0.7% of the excess of the increased value beyond $450,000 but not more than $850,000
1.0% of the increased value over $850,000.

*Take notice that the improved value of the land is used to determine how much tax is due on improved land.

Improved Land (for Non-Residential purposes)

0.95% of the increased value of each piece of land with a structure other than a home.
Empty Land

0.8% of the site value of undeveloped land that is smaller than 4,000 square feet, or 371.6 square meters
0.9% on the site value of undeveloped land up to $450,000 and more than 4,000 square feet
1.0% on the site value of undeveloped land over 4,000 square feet and worth over $450,000

*Please note that tax on vacant land is calculated on the site value of the land.