The Government of Barbados encourages foreign investment in real estate on the island with a number of policies, there are no restrictions preventing foreigners from buying and owning Real Estate.
Another important benefit for owners is the absence of capital gains tax on the sale of a Real Estate or estate duty. These policies encourage foreign investment into the island with particular emphasis placed on the luxury market for upscale villas and townhouses.
Transaction Costs
In September of 1999 the Property Transfer Tax of 10% on the purchase of property by non-nationals was removed. Sales commissions and survey costs are borne by the vendor. Each party bears their own legal fees which are based on a scale of fees ranging between 1.5% to 2%. On average, the cost would be about 1.5% to the purchaser plus VAT at 15%. This is the only purchase transaction cost as the incidental costs of forming, registering and maintaining of the BVI company that owns each property has already been done. Transfer Tax and Stamp Duty would not apply on the sale of shares in a non resident corporation which owns the property.
Financing
Most Real Estate in Barbados is bought with a combination of the owners’ investment and borrowing. Twenty to twenty-five year mortgages are available for residents of Barbados, and in the case of non-residents US dollar loans are available through First Caribbean International Bank for up to 60% of the value of the investment, over a term of up to fifteen years. Interest rates for Barbados dollar loans are around 10%, and foreign currency loans float at around 3% over LIBOR.
No description or information given whether or not in these particulars and whether written or verbal information about Barbados may be relied upon as a statement or representation of fact. Neither Alleyne Aguilar & Altman nor its joint agents have any authority to make any representation and accordingly any information given is entirely without responsibility on the part of Alleyne Aguilar & Altman.
