Whether you are a Barbadian or non-national, you do not normally pay any Government tax or Real Estate Agents fees when purchasing property.

However, sometimes a Vendor may not engage any Real Estate Agent and therefore a Real Estate Agent will only sell that property if the Purchaser pay a Buyer's commission equivalent to the Vendor's commission of 5%.

No licence is needed to purchase property. However, all non-residents whether natural persons or offshore companies must obtain permission from the Exchange Control Authority to purchase property. Normally, such permission is granted once it is confirmed that foreign currency was brought into the country and once the transaction is not tainted with illegality.

Legal fees are charged on a sliding scale starting at 4% and ending at 1%. This is the minimum fee only and depending on the complexity of the matter involved fees can be higher. Generally fees tend to be approximately 2%.

Barbados does not have building inspectors. At no cost, Real Estate Agents would give their opinion on the price the property is likely to bear. If desired, independent valuers would value the property. Valuers charge BD$2.00 per thousand on the value of the property.

If you purchase land only and intend to build, the island is served by an array of architects, quantity surveyors, engineers and construction companies, small contractors and draughtsmen.

Government grants special concessions and incentives if you are building for the tourism market. This applies to restaurants, recreational facilities and services, development of attractions which emphasise the island’s natural, historic and cultural heritage and for the construction of properties in non-coastal areas. Investors in tourism projects also benefit from write off of capital expenditure and 150% of interest; there is also exemption from import duty, value added tax and environmental levy in respect of furniture, fixtures and equipment as well as building materials, supplies and equity financing.

There are also local and international mortgages available. The legal fee is approximately 1% - 2% respectively. It is difficult for non-residents to obtain a local mortgage. However, non-residents can obtain an international mortgage from an offshore bank.