BUYER’S GUIDE
WELCOME
This guide is designed to provide you with the confidence and clarity you need to make informed decisions when purchasing your ideal property. While the process can seem daunting, we’re here to help navigate you through it smoothly.
For non-nationals, here are some key details to keep in mind:
There are no restrictions for non-nationals purchasing property in Barbados.
You are welcome to make Barbados your home for 3 to 6 months a year without needing a Special Entry and Reside Permit (SERP).
When bringing foreign currency into Barbados or borrowing funds, simple procedures should be followed to register these transactions with the Central Bank of Barbados.
There is no Capital Gains Tax in Barbados. Property prices are listed in US dollars (US$).
The Barbados dollar (BBD) is pegged to the US dollar at a rate of 2:1.
STANDARD PURCHASE PROCEDURE
Once your written offer is signed and accepted, we’ll connect you with a reputable attorney who will conduct thorough due diligence on your behalf. Meanwhile, the seller’s attorney will draft a sale agreement. Upon signing, you’ll pay a 10% deposit to secure the property, while the remaining 90% balance is due at closing. In some cases, like with planned developments for instance, there will be stage payments required and you’ll need to abide by that schedule. Expect the entire process to take approximately 3 to 6 months, with our dedicated support ensuring a smooth and successful transaction.
Here are Some Things We Would Need to Start:
Whether you’ll be purchasing through financing or cash
- If by financing - a mortgage prequalification letter
- If with cash - proof of funds or the equivalent, if requested
Your time frame to purchase
Your property wish list (starter home, investment property, minimum bedrooms, etc.)
Your desired location
FINANCING
When financing by way of a mortgage, you’ll require the following documentation:
Proof of identification such as Barbados ID or passport
Confirmation of your residential address e.g. utility bill
Job letter from your employer and a recent pay slip
If self-employed you will have to present financial statements for the company
Six months of bank statements, especially for new customers
A real estate valuation by a valuer approved by your mortgage or finance company. The cost is an approximation of the assessed value + VAT
If you are building on the property or renovating, then a contractor’s estimate
An offer and acceptance document from the vendor selling the property (where applicable)
General Mortgage terms and conditions:
Interest rates vary between institutions from 4% - 8.5%.
Mortgage rates can vary between institutions, with some offering to cover from 80% of the total amount up to 100%. Typically, commercial banking institutions offer 90% however. Your individual situation will also determine the rate you qualify for especially in cases where part of the purchase is facilitated through cash. Additionally, the rates for non-residents and residents differ as do the rates for land and new builds.
The property can be used as collateral to secure your mortgage through Full Life Insurance Cash and Bonds
Up to 35 years to repay
ASSOCIATED COSTS
Transaction Costs
Attorneys fees average 1-2.5% - the higher percentage applies to lower value transactions (The attorney fees are charged on a sliding scale set by government) The proportionate amount of land tax
Annual Costs
Property & contents insurance
Land tax - see chart below to determine your costs:
PROPERTY TYPE / VALUE TAX RATE
Un-improved residential land - site value
Improved value - residential first US$75,000 on the excess greater than US$75,000 but not exceeding US$225,000 on the excess greater than US$225,000 but not exceeding US$425,000 on the excess greater than US$425,000
Improved value for all other property
Land tax is capped at a maximum of US$50,000 on residences
Monthly Costs
Electricity - Barbados Light & Power
Water - Barbados Water Authority
Telephone landline & WiFi - Flow or Digicel
Cable TV - Flow TV or Digicel Play
Applicable condo & pool and garden maintenance fees
Property Management
Property management services are readily available through our sister company Blue Sky Luxury. The BSL team manages a holiday rental portfolio of over 250 villas, including some of the island’s finest flagship residences, and provides a direct line to affluent short-term renters.
Long-term rental vs short-term rental projections can be shared upon request.
The SERP programme offers long-term residency status to qualifying applicants who meet specific financial criteria. Successful applicants receive the right to reside in Barbados for a 5-year period, with the possibility of renewal.
Special Entry and Reside Permit (SERP)
The SERP programme is for 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.
The fees for the SERP vary based on the applicant’s age and employment status.
For retired persons:
Over 60 years: US$5,000
Under 60 years: US$3,500
For employed persons over 60 years:
Special Entry Permit: US$5,000 plus Indefinite Work Permit: US$20,000 or Annual Work Permit: US$1,500
For employed persons under 60 years:
Special Entry Permit: US$3,500 plus Indefinite Work Permit at: US$20,000 or Annual Work Permit: US$1,500
For non-executive directors, the fee is US$5,000 plus an annual US$500 fee. Additionally, dependents are charged US$150 each.
WHY US
With the combined expertise of 21 dedicated agents and frequent tailored communications, we provide unparalleled insights into comparable property values, ensuring you get the best price for your investment.
Our team will canvas the market to find your ideal property, presenting suggestions that meet your expectations. With the largest property inventory on the island, we guarantee that you’ll find your ideal property with us.
We offer a comprehensive range of services to accommodate your real estate needs, whether you are looking to buy, sell, or rent, need facility or property management services, or valuation services.
Additionally, you’ll benefit from our wide network of industry partners, including lawyers, developers, bankers, and land surveyors, ensuring a seamless and comprehensive real estate experience.
Using our internally developed Genius software, we’ll match any new listings to your preferences, ensuring you never miss out on the perfect property.
We’ll provide valuable market information with insights into market conditions, including pricing trends, and investment potential.
Our website is up to date, allowing you to conveniently browse our inventory.
THE TERRA GROUP
The Terra Group is a significant player in both the real estate and holiday rentals sector, boasting three distinct brandsTerra Caribbean, Terra Luxury, and Blue Sky Luxury. With a holiday rental portfolio of over 250 villas, including some of the island’s finest flagship residences, the group further extends its services across residential and commercial markets throughout the Caribbean. The team is RCIS and CCIM certified and is supported by three regional offices in Trinidad, St. Lucia, and Grenada, as well as through a longstanding partnership with Knight Frank and Douglas Elliman. Catering to property owners, developers, and multinational corporations, the group operates the largest team of industry professionals in the region.
Terra, Welches, St. James, BB23016
T: 1 (246) 434-9000 • e: infobb@terracaribbean.com
terracaribbean.com