At Terra Luxury, we believe our clients deserve concrete data and relevant market information to make informed decisions. We stay on top of the market by investing heavily in knowledge so that we guide you and serve you better. Whether you are looking to purchase or rent a property in Barbados for the first time, want to divest an asset, or enhance your Barbados real estate portfolio with another property, rely on our team to provide you with the Barbados real estate information and tools that matter.
Purchasing Barbados property can seem complex and time consuming, but it doesn’t have to be. With over 60 years of real estate experience in Barbados, our highly-skilled team at Terra Luxury helps you streamline the entire purchase process so you can find your ideal luxury home in Barbados, without stress or worry. Below are a few insights worth noting.
KEY INSIGHTS:
- There are NO restrictions to non-nationals purchasing Barbados properties
- There are no special visas required and non-nationals are welcomed to make Barbados their home
- There are some simple procedures that involve Foreign currency being brought into Barbados, as well as funds borrowed by non-nationals which should be registered with the Central Bank of Barbados
- There is no Capital Gains Tax in Barbados so investors are not charged for the appreciation in the value of their property
TRANSACTION COSTS:
- Attorney fees are approx. 1% - 2.5% plus 17.5% VAT
- You will be expected to pay the proportionate amount of Land Tax
STANDARD PURCHASE PROCEDURE:
- Offer and acceptance (in some cases a reservation agreement may apply)
- Appointment of an attorney-at-law
- Exchange of contracts for sale and payment of a 10% deposit to the vendor’s attorney-at-law within two to four weeks
- Conveyance and payment of 90% remaining balance within three to six months (In the case of off-plan developments, stage payments based on construction progress may apply.)
With highly-skilled agents, and unprecedented real estate knowledge, the most discerning clientele trust Terra Luxury with listing and selling their luxury properties. We work with you every step of the way, ensuring you have all the information and resources you need to make the right decisions on the sale of your luxury property in Barbados. Below are few insights worth noting.
TRANSACTION COSTS:
- Attorney fees are approx. 1% - 2.5% plus 17.5% VAT
- Real estate agent’s fees will be 4% to 5% plus 17% VAT – this fee includes marketing, viewing, signage, etc.
- Stamp duty is 1%
- Property transfer tax is payable by the vendor at the following rates:
- Unimproved property – 2.5%
- Improved property
- First US $75,000 is exempt
- Amounts over US $75,000 – 2.5%
STANDARD SALE PROCEDURE:
- Verbal offer and acceptance
- Appointment of an attorney-at-law
- Exchange of contracts within two to four weeks
- Provision of copies of prior deeds
- Draft conveyance sent to the purchaser’s attorney for perusal
- Signing of conveyance within two to six months
- Land tax bills and water bills must be fully paid up
At Terra Luxury, we are committed to finding our clients the ideal luxury home for their long-term stay in Barbados. Whether you are relocating to Barbados or making a permanent move, our team of well-informed professionals will help you narrow down your search to find the luxury property that suits your lifestyle, budget and preferences. Browse our rental FAQ below for more information.
DO YOUR RENTALS COME FURNISHED?
Some properties come furnished, with appliances only, or unfurnished. We will discuss your preferences during our initial meeting, so that your agent knows exactly what you need from your long-term rental.
WE LIKE THE PLACE; CAN WE HAVE IT WITHOUT THE FURNITURE THAT’S IN THERE?
Some owners are flexible and willing to make that adjustment, but we can verify this with the landlord before signing an agreement.
CAN WE BRING OUR PETS?
Pets are an important part of many people’s families, so we can check with the individual landlord to find out what pets, if any, they will allow on their property.
DOES THE PLACE HAVE INSECT SCREENS?
In our tropical island climate, it is not unusual to have small insects flying in and through our homes. Some properties are fitted with window screens to keep this to a minimum. If this is a concern, we can check each property you’re considering to find out if they have window screens.
IS THE PROPERTY WIRED FOR HIGH-SPEED INTERNET/CABLE?
Internet and high-speed connections are increasingly common in many homes. Your agent will be able to confirm the features of each property upon viewing.
DOES THE RENTAL PRICE INCLUDE UTILITIES?
Many landlords will cover the cost of the water bill but this is not a given. We can confirm with the potential landlord to see if they cover the cost of any utilities before signing your rental agreement.
DOES THE RENTAL PRICE INCLUDE MAINTENANCE OF THE GARDEN AND/OR POOL?
This is entirely up to the landlord. However, we can validate this information prior to signing your agreement, or recommend someone who can handle this task.
HOW MUCH DO WE NEED TO PAY TO MOVE IN?
Your move-in deposit varies depending on the landlord’s preference. Typically, you will be asked to pay the first and last month’s rent plus a security deposit; others may require some other combination of this.
If you are new to owning a luxury property in Barbados, the costs outlined below should help clarify the ongoing expenses that you can expect. Should you have any other questions, our team at Terra Luxury would happy to provide you with more information.
Annual Costs
- Property Insurance - US$2.50 to US$3.25 per US$500
- Contents Insurance - US$3.00 to US$3.75 per US$500
- Land Tax:
-
Site Value - Unimproved Land
- < 4,000 sq. ft. - 0.8%
- > 4,000 sq. ft. - 1.0% -
Improved Value - Residential
- First US$75,000 - 0%
- On >US$75,000 but
NB: Property tax is capped at a maximum of US$50,000 on residences - Improved Value - All Other Properties - 0.95%
- Rebates on property taxes are available but must be applied for as follows:
- Pensioners
- Agricultural Properties
- Villa properties
-
Site Value - Unimproved Land
Monthly Costs
- Electricity, Water, Telephone, CableM
- Condo fees, if applicable - see chart for a guide by propertyM
- Property/Home Owners Association fees where applicableM
- Pool and garden maintenance, if applicableM
Property Management
- Management Fee - minimum of US$250
Rental Agent Commission Fees
- Long Term Rentals
- 1 month’s rent - 1st year
- 1/2 month’s rent - 2nd year
- 1/4 month’s rent - 3rd year
- Short Term Rentals
- 10% to 30% commission is payable on short term rentals
Visit our sister company Blue Sky Luxury to find out more about short-term rentals in Barbados.
Read Less
There are many options available for financing the purchase of your luxury home in Barbados. Both US dollar offshore mortgages and local Barbados dollar mortgages can be considered. Below, the details of each are outlined for your convenience.
US Dollar Mortgage / Finance:
US dollar mortgages are readily available to non-nationals and non-residents, from the offshore sector of the local banking industry. You would be best advised to contact these institutions for their exact terms and conditions, however here is an overview of what can be expected:
- Between 60% - 70% LTV up to US $2.5 million
- 50% LTV in excess of US $2.5 million
- Minimum loan value is approximately US $250,000
- Amortization ranging between 5 to 25 years
- Rate LIBOR plus 2.5% to 4% - N.B. Rate can change based on market forces
- Bank’s attorney fees are approx. 1% - 2.5% plus 17.5% VAT
- Administration and arrangement fees are generally 1%
Personal requirements include, but are not limited to:
- Demonstrated foreign income stream must be provided to support repayment of mortgage (Job Letters / Income Tax returns)
- Current valuation / appraisal on Barbados property you own
- Current personal state of affairs, and if purchased by a company, an audited financial statement from a reputable Chartered Accounting firm
- Bank references
- Total debt servicing ratio not to exceed 40%
- Approval by The Central Bank of Barbados
- Sales agreement and current valuation report on the Barbados property you intend to purchase
- Two forms of Government issued identification
The Institutions Offering US Dollar Mortgages Are:
- The Royal Bank of Canada
- First Caribbean International Bank
Local Barbados Dollar Mortgage / Finance:
When applying for a local Barbados dollar mortgage there are a few important points to note. Most financial institutions require the following documentation:
- Proof of identification such as Barbados ID or Passport
- Confirmation of your residential address eg: utility bill
- Job letter from your employer and a recent pay slip
- If self-employed, financial statements for the company
- Bank statements, especially for new customers
- Barbados property sales valuation
- If you are building on the property, or renovating, a contractor’s estimate
- An agreement of property sale from the vendor selling the property (where applicable)
In general, the terms and conditions for local mortgages are as follows (may vary among lending institutions):
- Interest rates between 6 - 8.5%. This is subject to change based upon the local market. You can use our Mortgage Calculator tool to get an estimate of what you can expect to pay each month.
- Mortgages can cover up to 95% of the total amount, and some institutions do offer 100% coverage
- Housing Service Ratio (HSR) should not be more than 40% of gross personal income
- List of assets and collateral
- Evidence of full life insurance
- List of cash and bonds
- The property itself can be used as collateral to secure your mortgage
- Terms can vary:
- Up to 10% deposit required
- Up to 35 years to repay
Generally, lending institutions require that mortgages be repaid before you reach 70-years of age. This means that your mortgage payments and term will be calculated depending on your age and the number of years before you turn 70. However; there is flexibility with most institutions and it is always better to meet with a mortgage finance specialist to determine the term of your loan.
For further information on Barbados property sales, please contact one of our professional advisors - Sales(at)terracaribbean(dotted)com or 246.422.2618
Read Less
If you are looking to reside in Barbados for a long-term period, you will need to apply for a Special Entry & Reside Permit. The Barbados Immigration Department charges fees for Special Entry and Reside Permits, which are valid for 5 years. Below are some general eligibility and cost guidelines. For more information, contact the Barbados Immigration Department.
Eligibility
Non-nationals who are either:
- High Net Worth Individuals: Owning assets of US$5 million or more, or
- Owners of property not subject to mortgage, or investments purchased in Barbados valued at US$2 million or more with funds originating outside of Barbados
Fees for Retired Persons
- Retired persons over 60 years: US$5,000
- Retired persons under 60 years: US$3,500
Fees for Employed Persons Over 60 years
- Special Entry Permit: US$5,000; plus
- Indefinite work permit: US$15,000; or
- Annual work permit: US$1,500
Fees for Employed Persons Under 60 Years
Option 1:
- Special Entry Permit: US$5,000; plus
- Indefinite work permit: US$20,000
Option 2:
- Special Entry Permit: US$3,500; plus
- Annual work permit: US$1,500
Fees for Non-Executive Directors
- Special Entry Permit: US$5,000; plus US$500 annually
Fees for Dependents
- US$150 per dependent
We offer our clients a full list of complementary real estate services through our partner brand, Terra Caribbean. Our Advisory Services provide consultancy services including market appraisals, rental reviews, portfolio reviews as well as highest and best use studies. Our property valuations are used to support various transactions between buyers and sellers in the open market, as well as to assist various parties in making equitable transfers of ownership. We complete valuations for all property types.
The following list represents circumstances for which a valuation may be required:
- To set an asking price for the sale of a property
- To establish an offer price for the purchase of a property
- To secure a loan/mortgage
- For financial reporting
- For recoveries/foreclosures
- For divorce settlements
- For estate settlements
Our clients typically include private individuals, local and international banks, attorneys, corporate organizations and conglomerates, hotel groups, property funds and insurance companies.
Terra Caribbean is regulated by the Royal Institution of Chartered Surveyors (RICS) and our Advisory Services team includes three RICS Registered Valuers. We adhere to the valuation guidelines as set by the International Valuation Standards Council (IVSC).
If you are interested in a requesting a valuation, please complete our request form on the Terra Caribbean website.
Read Less