Barbados Property Law Guide

When it comes to owning a second home or holiday property, there’s nowhere better to start than Barbados. With lush greenery, picturesque beaches and a vibrant culture, this island truly is a paradise to behold.

However, it’s essential to understand the specific property laws operating on the island before making the leap to property ownership. Our helpful Barbados property law guide covers everything you need to know ahead of purchasing your next home in Barbados.

Property ownership laws in Barbados

Here at Royal Westmoreland, we’re pleased to offer a number of different property ownership models to suit all buyers:

Outright ownership: We have a number of Barbados properties available to purchase and own outright, from stylish townhouses and expansive villas to our exclusive Turnkey Collection and even land and build options, allowing you to design your dream villa from the ground up.

Fractional ownership: The ideal bridge between renting and full ownership, our fractional ownership opportunities allow you to return to your choice of villa or luxury townhouse for a specific length of time each year. The freehold for properties bought under fractional ownership is held in a third-party trust to protect the individual interests in the fractional home.

Resale villas: With over 350 homes in our resort, there is 5–7% of the total inventory is for sale at any given time.

Please note, all properties in Barbados are sold as freehold.

Buying property in Barbados laws

There are a number of legal checks and approvals that have to be granted under Barbados property law before you can move into your dream island home.

Our experienced Royal Westmoreland team is here to help you every step of the way. We can advise on the specifications of your home and offer property details.

However, you should also hire a trained attorney to ensure due diligence throughout the whole process. Your Barbados attorney will be responsible for prepping the legal documents required to close a sale, as well as requesting recent land tax bills relating to your preferred property.

Before viewing any properties, however, you should decide how you will finance the purchase of your new home:

Cash buyer

If you are able to give your attorney evidence of the required wealth to buy your property, you have the opportunity to become a cash buyer. Your attorney will be able to advise you on anti-money laundering (AML) compliance and identification requirements.

If you are not currently a Barbados resident, you must have your foreign funds registered with the Exchange Control Authority of the Central Bank of Barbados before investing in any property. Your attorney will be able to organise this process for you.

This registration is currently the only restriction on buying property for non-residents in Barbados.

Property loan

You may be able to take out a specific loan in order to buy your preferred property. You should meet with an experienced financial adviser to discuss your options and any potential obstacles.

Mortgage

Even if you don’t currently hold residency in Barbados, you may still be eligible for a mortgage. You should meet with a local financial adviser to discover the options available to you when it comes to mortgage availability for foreigners.

Next steps

Once you have decided upon your preferred method of financing and have had this approved, your attorney will be able to exchange the Agreement of Sale. This document sets out all terms, conditions and important information relating to the sale, as well as any Barbados land purchase requirements.

Please note that, in most cases, a 10% deposit is required upon the exchange of the sale agreement. The further 90% should be paid when the sale is closed.

If you are not currently a Barbados resident, your attorney will also apply for exchange control approval from the Central Bank of Barbados. It is a legal requirement for non-residents to have this approval when conducting a property sale.

Your attorney will oversee the final transfer of funds and ensure you have all important documentation to enjoy your new home ownership.

Additional costs

You should ensure that you also have enough funds to cover the additional costs usually incurred when buying a property in Barbados:

• Attorney’s fees.
• Real estate agent fees (if applicable).
• Loan processing fees (if using this type of financing).
• Property insurance.
• Land tax (due annually).

Please note, under Barbados real estate regulations, you will receive a proportionate land tax bill for your particular property. This bill will be calculated relative to the date of purchase.

If you pay your land tax within 30 days of the demand notice, you will receive a 10% discount on the overall amount. If you pay within 60 days, you will receive a 5% discount.

If you are of pensionable age and occupying your own home, your land tax will be calculated on just 40% of monies demanded.

Final considerations

On the completion date, your attorney will transfer the final funds and you will become the legal owner of the property. The successful transfer of the title deeds will be recorded by the Barbados Land Registry, completing the legal process.

Please note that inheritance tax is absent for both residents and non-residents in Barbados. This means that no inheritance or estate tax will be levied in the event of an individual’s death. As a Barbados homeowner, you should consider this financial benefit when it comes to passing on inheritance in your will.

Contact our expert team today to discuss the purchase of your ideal Barbados home.

Plus, if you are considering buying property in Barbados, why not enjoy a luxury holiday in a Royal Westmoreland villa to help cement your decision? Discover VIP experiences, from pristine beaches and incredible golf courses to unique dining opportunities and more.

Barbados property law FAQs

Do I have to pay stamp duty?

No. In Barbados, stamp duty is paid by the seller, not the buyer. The seller is also required to pay property tax and land tax.

Do I need an attorney to buy a property in Barbados?

Yes, you must consult an Attorney-at-Law in order to buy property in Barbados. Your attorney will ensure due diligence and deal with all legal requirements during the buying process.

How much do attorneys cost?

Attorney fees can vary but a typical payment due is 1–2.5% of your property’s purchase value, plus 17.5% VAT.

Can I get a mortgage in Barbados for a property as a foreigner?

Yes, non-residents can apply for a mortgage. You should consult with a local financial adviser to discuss your options when it comes to obtaining a mortgage for your particular property and financial situation.