ROYAL WESTMORELAND, BARBADOS
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We've put together a short list of questions about buying property in Barbados that we often get asked, together with their answers - we hope you find them useful.

If you still have any questions, please contact us - we're always happy to help!

Q: Can an overseas national purchase a property in Barbados?
A: Yes. There are no restrictions in place for overseas nationals. However, your attorney will advise you on matters pertaining to the local registration of funds brought into the country.

Q: Are there any specific taxes relating to the purchase?
A: There are no taxes imposed upon a purchaser. On sale of a property, Property Transfer Tax is payable by the vendor of the property at the rate of 7.5% on the improved value of the property, excluding the first BDS$125,000.

Q: Can I obtain a loan in Barbados to assist with the purchase?
A: Yes, as an overseas purchaser you can obtain a loan in Barbados to assist with the purchase in Barbados.

Q: If the property is financed from outside Barbados, can the funds be taken out of the Island should the property be sold at a later date?
A: Yes, the funds can be taken out of Barbados after gaining approval from the Exchange Control Authority. All foreign funds coming into Barbados should be registered with the Exchange Control Authority to ensure the easy repatriation of these funds on the sale of the property. All such matters are handled by your attorney.

Q: Can I transfer ownership to another member of my family in the future?
A: There is no restriction on the transfer of ownership of property in Barbados. However all non-nationals, whether they are transferring or acquiring land, must first obtain the approval of the Exchange Control Authority to effect the transfer.

Q: What happens to the property in the unfortunate case of death?
A: On the death of the owner the property passes as dictated under the terms of the will or, in the absence of a will, by way of Administration. If the will is probated outside of Barbados then it must be resealed in Barbados by way of an Application through the High Court. Any transfer of property to the beneficiaries of the estate of the deceased would not attract Property Transfer Tax.

Q: What are typical annual land taxes?
A: The rate of tax on residential properties based on a graduated scale is as follows:
- First BDS$125,000 of improved value is tax free.
- 0.1 per cent on the first BDS$225,000 or part thereof of the improved value; 
- 0.45 per cent on the next BDS$500,000 or part thereof of the improved value; and
- 0.75 per cent on the improved value in excess of $850,000.
However, there is a cap of US$30,000 as the maximum amount of land tax that can be assessed on any residential property.

Q: When do I need to engage an Attorney-at-Law and how should I select one?
A: You should engage the services of an Attorney-at-Law before you enter into any contractual obligations or pay over any money to the vendor or his agent. All practising Attorneys-at-Law in Barbados are required by law to be registered and to become members of the Barbados Bar Association.

Q: Do I still need an Attorney at home?
A: You should advise your Attorney-at-Law at home of your intention to acquire property in Barbados. They should be in a position to advise you on your tax liability at home and the type of structures that may be appropriate to accommodate your acquisitions abroad.

Q: How long does it take for a sale to be completed?
A: In a normal situation the legal formalities for a sale should take approximately three months. If a mortgage is being obtained by the purchaser, then the time for completing the sale may be extended.

Q: What are the legal fees involved?
A: The legal fees are legislated under the Legal Profession (Attorneys’-at-Law) (Remuneration Non-Contentious Business) Rules, 1997. The legislated fees for the purchase of land generally range between 1.2 per cent to 1.5 per cent of the land purchase value and are dependent upon such purchase value. Legal fees for involvement in the completion of a building contract are negotiable between client and attorney.

Q: Buying a property in Barbados sounds complicated. Is it really? 
A: No. It is very simple provided that proper and reputable advice is sought and used. Your Attorney-at-Law in Barbados would look after any unforeseen complications that may arise in relation to your purchase in Barbados.