Buying property in Barbados: part three of three

Seaside house, BarbadosInsuring your property

A number of quality (international and local) insurance companies exist on the island and rates for insurance vary between the different companies. As a guideline property insurance costs around 0.4% for residential property and between 0.6% and 0.8% for commercial buildings. Hotel insurance costs about 0.9%. All properties of course, are valued individually and the final rate charged depends upon the characteristics of the building and the site itself.

Running costs

Other costs you need to consider either when you live in your own property or whether you purchase property you’re renting out in Barbados will attract monthly bills for your water service from the Barbados Water Authority and your electrical service from the Barbados Light and Power company.

Depending upon where you live, if you are attached to the local sewage system you will be billed accordingly but alternatively a deep well is dug on your land to deal with your drainage and sewerage.

Your telephone and internet connections are billed monthly, but like all of these bills they can be paid online.
If you’re non-resident in Barbados there’s a high probability you will be expected to make advance payments to cover the usage for water, electric, telephone and internet, in advance.

All of these providers will require that you present yourself at their offoces for the completion of application forms, not an online application.

Agents fees

You should allow for approximately 10% to cover your total costs when you’re selling a property. The seller will pay a transfer tax of 2.5% (whether you’re resident or not the rate is the same) and stamp duty of 1%. If you factor in your legal fees of 1.5% and real estate agents fees of about 5% you’ll see how the 10% figure is calculated.

Villa rentals

There’s a number of tax decisions you need to be aware of if you own a villa in Barbados if you have a certificate from the Barbados Tourism Authority (which means you’re registered through them rent out your property.) You’ll receive a rebate of 25% of your land tax bill.

Property owners who want to rent their property on the short-term rental market must charge 7.5% VAT on top of the rent. This registration for VAT lets the property deduct VAT on input costs.

Any property profits made from the regular rentals will be subject to income tax in Barbados.

Hotels

A quirk of the Tourism Development Act 2002, means that the land tax for hotels registered under the act is calculated at half of the improved value rates of the land.

Take advice

It’s essential that you take proper professional advice from real estate agents, official bodies, architects and builders to ensure the Process of buying and building is completed efficiently and competently. The process will take longer than you expect. It’s a hot country for builders to work in so don’t expect to build your palace in a couple of weeks. The good news is because the legal system is respected throughout the world title to your property will be 100% guaranteed.

Please go look over parts one and part two of this guide.

(Photo: Abeeeer)

Buying property in Barbados: part two of three

Beautiful Barbadian Chattel HousePlanning permission

The Town and Country Development Planning Office (TCDPO) decides what properties can be built and where. Properties cannot be built on greenbelt land, unless you’re successful in getting permission from Town & Country to change the use of a lot of land.

If you’re buying an empty piece of land, the seller will always need to get a certificate of compliance from Town & Country to satisfy that the roads and services have been provided in accordance with planning or guidelines.

Before the purchaser can build a property on land for the first-time or improve property that’s already there, they require planning permission from Town & Country. This helpful and useful department should be brought into play early in any planning. There are set guidelines as to what can and cannot be done on any lots of land. There is a limit to the size of property that can be built on a piece of land and a limit to the height of the property in relation to the zone on which it is being built.

Planning permission can be a lengthy process often taking between two and six months to get the results in writing. Taking a meeting with the correct person from Town & Country beforehand can go a long way to ensuring that your application meets not only your requirements but those also of the Town & Country.

Your yearly ownership costs

The tax called ‘residential land tax’ is charged on the improved value in the following scale rates;

0% on the first 150,000 Barbados dollars
0 .1% on the next 250,000 Barbados dollars
0.45% on the next 600,000 Barbados dollars

where the value is greater than 1 million Barbados dollars the tax rate is 0.75%.

A tax cap exists. Therefore, a maximum of 60,000 Barbados dollars has been placed on residential properties as the most you can pay.

Unimproved land, land that just sits there before you do anything with it, is taxed at 0.6% of its value.
Pensioners get a specific deal applicable only to them. If they occupy their own residential home they pay land tax calculated and payable at just 50% of the improved value of the property in excess of 150,000 Barbados dollars

Agricultural land, where the land is used for that specific purpose, gains a rebate of 50% of the land tax paid. You should be sure to read the small print as many conditions apply.

Please go look over parts one and part three of this guide.

Photo: David_Turner

Buying property in Barbados: part one of three

Seaside house, Barbados

The process of buying property in Barbados is relatively straightforward, quite similar to the British legal system where its roots exist, but it may take a little longer than you’d hope for, as is the Caribbean way of life.

Firstly, let’s look at the actual buying process itself then we’ll be able to look at the associated list of the costs involved.

Once you select the property you want to purchase, you make a verbal offer. Once the offer has been accepted (and this may involve to and fro offers with several refusals in the meanwhile) you are required by law to choose a registered Barbadian attorney who will carry out the search of the register and establish ‘title’ (ownership) to the property.

The seller’s attorney prepares the contract which always provides for a deposit the be paid to secure the property. A 10% deposit is held by the seller’s attorney in escrow until the completion of the process which is the stage at which the balance of the purchase price is paid for the title of the property that passes to the purchaser always in a legal document called a conveyance. The final 90% of the balance due is paid just before the conveyance completes.

The title to your property can be made out to either an individual’s name or for a company set up purposely to own the property. You should take legal advice and taxation advice to find out which route is most suitable for you. It’s not always the case that as a nonresident of Barbados, you will purchase via a company which may be incorporated outside Barbados, but must be registered to do business in Barbados, in other words operate the property. Likewise, a resident of Barbados may choose either an individual or company ownership depending upon taxation requirements.

It is essential that any foreign currency bought into Barbados is registered by the correct legal forms at the Central Bank of Barbados. This is necessary to ensure that funds can be repatriated if the property is sold.
Legal fees

Barbados has a scale of fees for attorneys operating conveyancing on the buying and selling of property. Each party to the deal pays their own legal fees. The scale ranges from 1.5% to 2%, with 15% VAT added to your bill.

Please go look over part two and part three of this guide.

(Photo: Abeeeer)

Judging a restaurant

The easiest way to judge the quality of restaurant is by ordering a Mudslide and testing the quality of the drink in comparison to the perfect Mudslide.

For those without the knowledge, a Mudslide is made from a combination of the following:

30 ml vodka (substituted with Barbados rum in Barbados )
30 ml Kahlua® coffee liqueur
30 ml Bailey’s® Irish cream
60 ml cream
60 ml milk
1 banana
3 ice cubes
grated chocolate


The experts will tell you that you should pour chocolate syrup (Hershey’s if you’re from North America/Canada, Cadbury’s if you’re from Great Britain and anything from Switzerland if you are European) around the inside rim of your glass. Add your ice, the rest of your ingredients, blend and serve.

You may have guessed by now that Mudslides are one of my favorite ‘special’ drinks. Not for every day consumption, but for those ‘special’ occasions. They are particularly chocolatey and become a thick alcoholic milkshake on demand. Some people mess around with the formula perhaps increasing or decreasing the amount of rum, Irish cream, or coffee liqueur to achieve a greater satisfaction for the individual.

A nonalcoholic version is available by substituting alternatives with similar flavors, but the smooth kick will disappear. Cold coffee often appears in the version without alcohol.

Art and craft people spend time making pretty patterns on the inside of your glass with chocolate sauce. This will enhance the visual appeal, but makes no difference to the final taste.

TGI Friday’s on the south coast makes a reasonable Mudslide and finds itself in second place. The winner off the best location for a Mudslide is at either of the two Lucky Horseshoe locations. They have mustered the perfection of combination and presentation.

So why’s it called a Mudslide? It ends up various shades of brown and slides down the throat, oh, so very well.

Child abuse in Barbados

While most countries have done away with corporal punishment, in school and at home, Barbados has still not moved into the 21st century and outlawed this type of child abuse.

It’s still legal in Barbados for teachers to administer corporal punishment on a child. This form of chastisement is the only lingering embarrassment Barbadians either insist is necessary or have not been vocal sufficiently in the right areas to bring about a total mood for change.

Let’s be clear. A grown-up is still allowed, legally, to beat a small child with a stick, a leather strap or even a slipper to try to enforce a change of attitude or actions that the child ‘might’ have carried out. Proof in law is not required; just say so of a teacher, parent or guardian.

To provide a simple example, an eight-year-old daughter of a close friend, told us that she’s only been beaten twice at school. On both occasions she had made a mistake with her school work. She hadn’t bullied another child; she hadn’t hit anyone; she hadn’t been abusive to a teacher; she had just made a simple error and her thrashing was meant to teach her not to make the error again. It obviously didn’t work the first time, so would it work the second time?

So what provides the outstanding memories for this are eight-year-old at school so far? Her beatings. Even if she completes her schooling with no further corporal punishment what lessons has she learnt? She now knows that if someone makes a simple mistake it’s obviously correct – the teacher hit her – to strike them so that it hurts them in the hope that they would learn never to make another mistake in their life.

Whatever way you look at it, it’s child abuse. It’s potentially a 250 pound man repeatedly hitting a 40 pound small child. While you may think that it’s an exaggerated example, the reality is that this action could be taking place at almost any school on the island, today. Out of school, if the same action occurred the man would be looking at jail time. It’s also wrong to believe that only male teachers administer this type of punishment as women are just as quick to force children to toe the line in this manner.

At another school a teacher decided to give every child who was at least an hour late for school, a minimum of six of the best as they enter the school gates in full view of other pupils, teachers and the general public. We all know that these children needed some sort of chastisement, but to live in fear of the stick would probably keep them away from school completely, rather than turning up on time. When the headteacher found out, he moved the process behind closed doors. Incredibly, the headteacher and school governors backed the abuser. They had the opportunity to show humans that they have learned from the past, they missed a substantial opportunity. How this did not turn into a full-scale riot is only down to the apathy and acceptability of this practice by the parents and guardians involved.

One of our criteria when seeking a school for our seven-year-old, was a written guarantee that she would never, ever have a teacher lay a finger on her. It was also confirmed by the principle that it was considered way out of line for any pupil to intentionally hurt another pupil. Mutual appreciation of each other, child to child and teacher to child was paramount.

One school we visited contained a proud head teacher who told us that only she and her deputy would now beat the children. She consider this her move to bring this violence up to date. This form of human rights mistreatment doesn’t look like ending any time soon.

It’s no excuse to say that ‘I got beaten at school so therefore I can beat my child.’ What this will teach children is that bullying is acceptable and that physical abuse is perfectly acceptable as the first line of attack, let alone being the last resort. It teaches children that adults are prepared to hit out, in a temper, when they are unable to come to a satisfactory verbal conclusion with a child. If a teacher (who is trained to deal with children) or parents/guardians (who may not be trained) cannot reason with a young child through verbal interaction, then they’re probably not fit to teach in the first place.

There’s a lot of talk in Barbados that this form of child abuse should end. Local newspapers report that less than 30% of people still agree with corporal punishment in this manner. The talk needs to become reality so that we can teach our children that they don’t need to live in fear of being beaten, if they make mistakes they can learn from them without fear of a stick. There are many ways a child can be chastised efficiently without physical abuse and in a manner that won’t be their one major memory from school days.