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.
