Are you dreaming of owning a slice of paradise in the sun-soaked island of Barbados? As an expat, the thought of purchasing property in this Caribbean haven may seem daunting. However, the process is more straightforward than you might think. In this post, we will explain the legal requirements for buying property in Barbados as a foreigner.
No Barriers to Ownership
The first thing you need to know is that Barbados has no restrictions on foreigners owning property. Whether you’re looking for a beachfront villa, a charming inland villa, or an investment property, Barbados is open for business. Regardless of your citizenship or residency status, you are free to own land and property in Barbados. The government has made it incredibly easy and appealing for foreigners to invest in the local real estate market.
Applying for Permission
While there are no restrictions on ownership, there is a legal requirement that all non-nationals must meet. If you’re planning to buy property in Barbados, you will need to apply for permission from the Central Bank of Barbados. This step is essentially a formality and approvals are almost always granted, but it is an essential part of the process.
Closing the Deal
Once you’ve chosen your dream property and your permission from the Central Bank has been granted, you’re ready to proceed to the closing process. This typically involves signing a binding contract and paying a deposit, usually 10% of the purchase price. The remainder of the price is payable upon completion, which usually occurs within 3 months.
The closing process also involves conducting a title search to ensure that the property is free from any encroachments and the seller has the legal right to sell. A local attorney usually handles this process, and they will also lodge the title deed at the Land Registry once the transaction is complete.
Taxes and Fees
The financial aspects of buying property in Barbados as a foreigner are also important to consider. The primary expenses you’ll encounter are legal fees. Legal fees typically range from 1-2.5% of the purchase price, plus 17.5% VAT. The property transfer tax and stamp duty are paid by the seller.
Long-Term Considerations
Once you’ve purchased your property, you’ll also need to consider the ongoing costs. Property taxes in Barbados are relatively low, but they do exist. The rate varies depending on the property’s value and use, so it’s important to budget for this expense. Additionally, if you plan to rent out your property, we can advise you further on this.
Conclusion
Buying property in Barbados as a foreigner is a relatively straightforward process. The government of Barbados encourages foreign investment, making it easy for expats to own and invest in property on the island. The key is to familiarise yourself with the process, understand the costs involved, and work with a reputable local attorney and real estate agent.
Remember, buying property in a foreign country is a significant decision, so it’s essential to do thorough research and feel free to reach out to us for some further advice. But with the right guidance, you could soon be sipping a cool rum punch on the porch of your own Barbadian home, enjoying the island life you’ve always dreamed of.
