October 21, 2021

Guide to buying a property in Barbados

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a beach in Barbados- unsplash

Investing in one of the most beautiful spots of the Caribbean region is not that uncommon. Many people see this place as perfect for their second home, a rental property, or a great place to develop their business. Either way, several reasons make Barbados an excellent place to invest – and this guide will show you how to do it. Here are tips on buying a property in Barbados and the main factors to look for during that process. 

Buying a property in Barbados – Should you do it?

If you’re still thinking about buying your first home here, you should know that it’s okay to have some doubts about such an investment. However, several arguments make Barbados a great place to buy your next property. Here are some of them:

  • It’s easy to reach – even though it’s an island, Barbados is easy to get to because there’s an international airport. Residents of the United Kingdom, as well as North America, don’t have trouble coming here.
  • Tourism – strong tourism industry makes this place attractive for investors looking for rental properties.
  • Buying a property in Barbados is easy – even for non-nationals, the purchasing process is quite simple, which is why many choose Barbados real estate as their next investment.
  • Climate – we shouldn’t skip mentioning the main reason people love this island – the fantastic weather. Sunshine all year long, along with beautiful sea and pristine beaches, truly makes Barbados a location loved by many. 

It’s easy to understand why so many people buy a property in Barbados – it’s a paradise! alt.tag: beachfront properties to choose from when buying a property in Barbados – Unsplash

Can you buy a property even if you’re not a local?

Absolutely! There are no restrictions for non-nationals in terms of investing in a property in Barbados. The local government welcomes any foreign investments, which results in pretty simple buying procedures. However, foreign buyers need to get permission first. The Central Bank of Barbados issues it, and it’s not difficult to get one.

The taxes 

Buyers should know that the seller pays the transfer tax and the stamp duty. However, the buyer should prepare to pay the Residential Land Tax every year and the legal fees that are usually about 2% of the sales price. 

The market 

Being such an interesting location, Barbados is very attractive among foreign visitors. Unique culture, sunny days, and remarkable beaches make many of them stay and invest in a property on the island. If you’re thinking about purchasing a home here, you can choose among beachfront apartments, luxury villas, and holiday homes, as well as traditional family homes. Generally, the real estate market in Barbados is very active and includes some of the most luxurious properties in the Caribbean. However, you can also find more affordable apartments and condominiums. That’s why it’s best to evaluate your budget first and see how much you can afford before starting the search and buying process.

Evaluate your situation, priorities, and preferences before buying a property in Barbados. alt.tag: a person holding house keys – pixels

Barbados – the buying process

As we have mentioned, purchasing a property in Barbados is not that difficult. However, it includes a couple of steps, so it’s best to be prepared in order to get the best deal. 

Searching for the best property

Looking at properties in Barbados can take a while if you don’t know what you’re looking for. Depending on your budget, lifestyle, and work situation and the reason why you’re investing in the Caribbean will determine the course of the buying process for you. That’s why it’s necessary to sort these details out and then narrow your search to the best possible options. Also, hiring a real estate agent can be of great help here. Even though you’ll have to pay a fee (generally, it’s 5% of the sale price), they’ll guide you through the process and make sure you find the best deal. 

Bonus tip: not only a real estate agent makes the purchase process more manageable. Another situation you should hire an expert is when you decide to relocate to Barbados. For example, if you are relocating from Florida, it’s essential to browse Best Movers in Florida and carefully pick a team that will suit your moving needs. Avoid trusting uncertified sources and contacting shady businesses. Wherever you are from, make sure you explore your options carefully and browse through online databases before you schedule a moving date with a company.

Purchasing methods 

You can choose between the two methods of buying a property here. The most common way is by using an offshore company, as this doesn’t include property tax payments, registering the foreign currency, etc. The other method is the domestic transfer of the property, where the property tax of 2.5% and stamp duty (1%) need to be paid. Make sure you do some research on both methods to pick the one that suits your financial situation. 

Making an offer 

After you find the property you like, it’s time to make an offer. Once accepted, you need to hire an attorney from Barbados who will do a title search. Also, it is necessary to pay a deposit (10%) that will be held until the last step of the sale. After the property transfer title is finished, you have about 3-6 months to pay the remaining amount. 

It’s time to prepare for the move 

Moving to a foreign country is not an easy feat and is a cause of many headaches. However, you can reduce stress when moving abroad if you do your due diligence. Relocation to Barbados can also be simple and easy if you plan on time. It’s possible to organize a worry-free process, but only if you ensure there’s enough time and you have enough energy to do it. Plan every detail, do tasks according to a moving checklist, and leave no space for mistakes. This will help you finish the tasks on time and avoid becoming too tired and overwhelmed by the whole process.

Moving to a place like this shouldn’t be a problem. -pexels

Take your time

Buying a property in Barbados is not something you do every day. That’s why it’s crucial to make the right decision when choosing the property. Take your time with this, especially when purchasing remotely. However, if it takes too long to decide, some good properties will disappear from the market. Once you come across a property you like, don’t wait too long to go for it. 

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