Acquiring property in Barbados from Canada

Each winter, a great many Canadians begin to consider what it would take to own a residence in Barbados. Foreign nationals may purchase property here outright, and much of the process will feel familiar. The differences, however, are material: they shape how funds are moved, how long the transaction takes and how proceeds are eventually returned home.

This article follows an acquisition from a Canadian purchaser’s perspective. It is general information rather than legal or tax advice, and you should retain your own Barbados attorney from the moment an offer is contemplated.

Can Canadians own property in Barbados?

Yes. Barbados permits non-residents to hold property freehold. The principal additional step is exchange control: as a non-resident, you bring your purchase funds into Barbados and register them with the Central Bank of Barbados. Withers, the international law firm, notes that permission is ordinarily granted where the purchaser brings in funds covering the full purchase price.

That registration is significant beyond the purchase itself. It is what entitles you to repatriate your capital when you eventually sell. Your attorney or bank will normally manage it as part of the transaction.

Searching without a multiple listing service

Canadian buyers are accustomed to an agent drawing every available listing from the MLS. Barbados has no public equivalent. Properties are listed with individual brokerages, and a meaningful number change hands privately without public marketing.

Barbadian agents do, however, co-operate. A buyer’s agent can introduce you to properties listed with other firms, with the commission shared between agents and paid by the seller. In practice, a well-connected agent can search the entire market on your behalf; it simply requires relationships rather than a database query.

The acquisition, stage by stage

1. Define the purpose of the property

A winter residence, a future retirement home, an income property and a permanent relocation each point to different parishes and property types. The west coast offers calm water and the island’s most prestigious addresses. The south coast is livelier, closer to the airport and generally more accessible in price. We compare the two in West coast or south coast.

2. Establish how you will fund the purchase

Most international purchasers buy with cash or finance against assets at home. If you intend to borrow in Barbados, approach local lenders early; lending to non-residents is typically more conservative than Canadian buyers expect.

Prices are customarily quoted in US dollars as well as Barbados dollars. As the Barbados dollar is pegged at BDS$2 to US$1, the currency question for a Canadian buyer is essentially one of CAD against USD.

3. Viewings, in person and by video

At least one visit to view properties and neighbourhoods in person is advisable. Between visits, live video walkthroughs allow you to shortlist or decline properties without travelling for each one.

4. Offer and agreement for sale

Once terms are agreed, the attorneys prepare an agreement for sale and the purchaser pays a deposit, normally 10% of the price, with the balance due on completion (Knight Frank). The amount and timing are set out in the agreement, which you should review carefully with your attorney before signing.

5. Due diligence

Your attorney examines the title, searches for any registered encumbrances, and confirms boundaries and permissions. For a non-resident, they also coordinate the exchange control registration of your funds.

6. Completion

On completion, the balance is paid and the conveyance is executed and recorded. The keys are then handed over.

The allocation of costs

In Barbados the principal government charges on a sale customarily fall to the seller. Withers describes stamp duty of 1% and property transfer tax of 2.5% on the price above an exempt threshold, both payable by the seller, who also ordinarily bears the agent’s commission.

The purchaser’s principal costs are:

• Legal fees. Global Property Guide places these at roughly 1–2% of the price, plus VAT.
• Financing costs, where a mortgage is arranged.
• Registration and disbursements, which your attorney will itemise.

These figures are revised from time to time. Request a written estimate from your attorney before signing.

The costs of ownership

The principal annual tax is land tax. The Barbados Revenue Authority publishes the current residential bands: no land tax on the improved value of a residential property up to BDS$400,000, with graduated rates applying above that. Owners should also budget for insurance, including hurricane cover, as well as maintenance, utilities and, within gated communities, estate fees.

If you intend to rent the property while you are away, our guide to long-term rentals is a useful starting point, and advice from a tax specialist in both countries is essential. Rental income carries tax consequences in Barbados and may do so in Canada as well.

Selling and repatriating your capital

Because your purchase funds were registered on arrival, you may apply to repatriate the proceeds of a future sale. Withers notes that the Central Bank has historically permitted the original purchase price plus a mark-up to be repatriated, with any balance released over time. Confirm the current position with your attorney or bank before you buy, so your eventual exit is clearly understood.

In summary

• Canadians may own property in Barbados outright.
• Register your purchase funds with the Central Bank on arrival.
• Retain your own Barbados attorney.
• The seller customarily bears the transfer tax and stamp duty; the purchaser bears legal fees.
• A well-connected agent can search the whole market, even without an MLS.

For the complete process on a few pages, request our complimentary international buyer’s guide.