After a few days in Barbados, many visitors’ thoughts turn to the idea of staying here permanently. Although it covers an area of just 166 square miles, Barbados real estate has some of the most magnificent properties to be found anywhere. From a 17th century plantation house to new luxury villas and condominiums, from timeshares starting at approximately $12,500 US to luxury villas costing millions of dollars, Barbados real estate has something for everyone. Barbados is a safe place to invest in real estate as, unlike other Caribbean islands, it is not affected by hurricanes, which generally pass well to the north.
Barbados has been recognized by the United Nations as having the best quality of life anywhere in the developing world. A stable currency based on the US dollar, social and political stability, a low crime rate, a growing economy, world-class telecommunications, a well-educated and trained workforce, an excellent healthcare system, a good road network , dependent utilities and year-round great weather make it a favorite destination for everyone from budget travelers to rock stars and royalty.
Buying real estate in Barbados is not difficult, but there are things you need to keep in mind. There are no restrictions on non-Barbadians owning property, but there are certain formalities, including obtaining permission from the central bank. Financing is available to non-Barbadians, but you must register any money you bring in with the Central Bank so that you can repatriate the funds if you decide to sell your property at a later date.
Title must be approved and certified deeds and survey plans must be registered. Buyers require a registered Barbadian to search the registry and establish title to the property before completing the sale and it is essential that you use a reputable Barbados real estate agent and lawyer to handle these transactions.
Sellers pay a 7.5% transfer tax on any value over $125,000 plus a 5% sales commission. Legal fees for both the seller and the buyer typically range from 1.5-2%. Once an agreement is signed and a 10% deposit is paid, the deal must continue or the deposit will be forfeited.
Owners pay an annual property tax of:
On the first $125,000 = 0%
Next $350,000 = 0.10%
Next. $500,000 = 0.65%
Excess = 0.75%
(All prices in Barbadian dollars)
As with real estate everywhere, the three most important things are location, location, and location, which means properties on the west coast are usually the most expensive, the south coast is next, and the east coast and inland properties are the latest.
If you don’t plan to spend all of your time in your villa, rentals can provide you with a good return and cover your regular maintenance and administration costs. Prices have risen steadily over the years, although with the financial crisis, luxury properties have seen prices drop as much as 30%r.
New developments are always being built, and depending on your tastes, you’ll probably be able to find something near a beach, golf course, tennis court, marina, polo field, or anything else you can imagine.
If you are interested in purchasing Barbados real estate, there are a number of well-established local and international agencies that can provide you with information on available properties and purchase requirements.