Property for Sale in Barbados, Caribbean

In 1998 the government abolished property transfer tax for non-nationals of Barbados.

It is necessary for a non-national purchaser to remit the purchase price to Barbados in a foreign currency. It is then converted into Barbados currency and registered with the Exchange Control Authority of Barbados. This is to facilitate a subsequent repatriation of funds if the property is sold.

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.
The rental market is equally as strong. The short term market is healthy due to Barbados being one of the most popular holiday destinations and the long term market is in demand as there are a number of overseas workers requiring living accommodation.

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.

If you own a property on Barbados and use it as your main residence and do not rent it out, you can be a tax resident on the island without any qualifying period. Other types of residency would need advice from a Lawyer.