Buying and Selling Process

Residents and non-residents are treated the same in Barbados regarding the purchase of property. There are no restrictions on foreign ownership.

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 based on date of purchase.

Standard Purchase Procedures

• Verbal 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 vendors attorney-at-law withing 2 to 4 weeks
• Conveyance and payment of 90% remaining balance within 3 to 6 months (in the case of off-plan developments, stage payments based on construction progress apply

Mortgages/Finance

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.

Here is an overview of what can be expected, but we would advise you to contact these institutions for their exact terms and conditions:

• Between 60%-70% Loan-To-Value (LTV) up to US$2.5 million
• 50% LTV in excess of US$2.5 million
• Minimum loan value of approx. US$250,000
• Amortization ranging between 5-25 years
• Rate LIBOR plus between 2.5%-4% (rate can change based on market forces)
• Bank’s attorney fees are approx. 1%-2.5% plus 17.5% VAT
• Administration/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
• Current personal state of affairs. If a company, most banks will require audited financial statements 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 that offer US Dollar Mortgages are:

• The Royal Bank of Canada
• Scotiabank
• CIBC FirstCaribbean International Bank

Exchange Control Regulations

• Non-nationals are required to obtain the approval of the Exchange Control Authority for purchasing property.
• Approval is usually granted but is given at the discretion of the authority.
• The monies for the purchase of the property in Barbados must be registered with The Central Bank of Barbados.
• As part of the approval process, the purchaser should present proof of the remittance.
• Should the purchaser decide to sell the whole or part of the property purchased, the sale will be subject to the permission of the Exchange Control Authority.