Barbados

Mention Barbados and for most, a luxury Caribbean dream springs to mind. Glorious sunshine, warm smiles, clear seas lapping on white sandy beaches, a backdrop of lush tropical greenery and a laid-back vibe. There may be a rum in hand, with the sound of steel pans in the background, travelling on the gentle breeze. The dream is real for thousands of visitors each year, surfing on the East coast, water sports, golf, tennis, duty free shopping, delicious dining experiences all supported by good infrastructure.

Pre-pandemic, visitor figures were rising year on year to the island, now a republic. And during the pandemic, when travel was restricted and when priorities and working practices changed, a large number of higher earning remote workers applied for 12-month Welcome Stamp visa when it was launched by the government in 2020.

Visitors may become second homeowners, seeking out high quality apartments, villas or apartments often in resorts or secure gated communities, beachfront or more in-land. There are a number of new developments available that include high sustainability and eco-credentials and many offer furnishing packages too. The main house transactions are to foreigners from USA, Canada, UK and Europe, buying luxury homes on the West, and Southern, coasts. Thanks to the holiday demand, many homes are let during popular months bringing income to help cover running costs. Others may be strategic investments, or full-time residencies.

Our affiliate partner in Barbados has many years of experience, not only selling and renting property on the island, but also managing property. This includes overseeing work if you buy a home you wish to alter.

Since the last global financial crash the economy did contract, which had impact on the housing market and despite recent increases, they remain 20% or so below their peak. So there is potential for further capital growth in longer term.

Several nationalities, including British passport holders, can stay up to six months without a visa. Barbados offers a choice of Special Entry Residents Permits (SERPs) for longer stays or relocation for retirement, lifestyle, work or perhaps tax efficiency. Categories include a five year resident visa in exchange for US$2 million minimum investment in property on the Island from a high net worth individual (HNWI) with assets over €5 million worldwide, and their dependents. It does mean you become tax resident in Barbados. There terms and conditions, and fees, so consult the Immigration department or specialist for details.

There is no restriction on foreign ownership of property in Barbados, and non-residents are treated the same as citizens and residents. The only difference is non-residents must get approval from the Exchange Control Authority and foreign currency funds registered with the Central Bank. This is a formality usually handled by the buyer’s legal representative, who must be an attorney registered locally.

The Barbados dollar is pegged to the US dollar and US dollar mortgages are offered to foreigners by some banks. There is VAT, corporate and personal taxes in Barbados, but these are favourable compared to some other countries. There is no inheritance tax or capital gains tax.

When it comes to property transactions, the seller pays 1% Stamp Duty and 2.5% property Transfer Tax. There is an annual Land Tax based on property value, and in addition to the usual running costs of a home there may be community or resort charges, based on your location. Get full costs and taxes from the estate agent before making any offer.

Ensure you have your currency exchange and finances in order, and appoint an attorney-at-law early on, as once your offer is accepted, contracts are drawn up and in as little as two weeks. A 10% deposit will be due on exchange. Then the deeds and conveyance are checked with the remaining 90% paid on completion (this will be different if you are buying a new build). The average time is around three months to buy a re-sale property Our affiliate partners can help you through the process, and help you find your dream property in Barbados. Please do get in touch with us and we can connect you.

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