Buyer’s Guide

Below is a concise overview of typical costs and considerations when acquiring real estate in Barbados. Always obtain current professional advice; taxation and statutory charges can change.

Purchaser’s Expenses

With regard to a purchaser’s expenses, there is no distinction between nationals and non‑nationals:

• Property Transfer Tax — currently nil
• Land Tax — variable depending on value & time of sale
• Out of pocket expenses — $450 BBD
• Legislated Legal Fees:

  • Up to $25,000 — $1,000.00
  • Next $75,000 — 2.5%
  • Next $100,000 — 1.5%
  • Next $300,000 — 1.25%
  • Thereafter — 1%
• VAT of 17.5% is payable on legal fees

Property Tax & Real Estate

An annual Property (Land) Tax is charged on real estate. The assessment is made on the “improved value” or, if undeveloped, on the “site value”. Assessments are performed by the Government and reviewed every three (3) years.

Property Tax on Improved Property

• On first $150,000 BBD — Exempt
• $150,001 to $350,000 BBD — 0.10%
• $350,001 to $850,000 BBD — 0.65%
• $850,001 and over — 0.75%

Property Tax on Improved Land

0.6% on the unimproved value of the land.

Transfer Tax and Real Estate

A Transfer Tax is applicable when ownership of a property is transferred (changes hands).

Other Costs (Typical)

Additional expenses sometimes involved in buying and selling property:

• Attorney fees — approximately 2%
• Stamp Duty — 1%
• Realtor (if used) — 5% plus 17.5% VAT

These can total approximately 8% of the selling price of a property. Together with transfer tax (2.5%), a vendor could realize total expenses of roughly 10.5%.

Advice

Non‑national purchasers should obtain Exchange Control Permission to ensure the foreign currency brought into the island is registered, enabling repatriation of funds upon resale. This is usually a formality handled by your legal representative.

Selecting an attorney is an important step—our team can recommend reputable attorneys‑at‑law familiar with Barbados property transactions.

Disclaimer

This guide is provided for general informational purposes only and does not constitute legal, tax or investment advice. Figures, rates and regulations are subject to change. Always consult qualified professionals before proceeding with a transaction.