Buying Property in Barbados as a Foreigner: How It Works

No restrictions on foreign ownership

Unlike some Caribbean islands, Barbados does not require foreign buyers to obtain an alien landholding licence. According to Invest Barbados, there are no restrictions on non-citizens purchasing property; the only condition is that buyers who are not resident in Barbados must fund the purchase from external sources rather than from money raised locally.

Foreigners take the same legal title as Bajan citizens, and most residential property is sold freehold. Some overseas buyers choose to hold property through a company for estate-planning reasons, but that is a choice to discuss with a Barbados attorney and your own tax adviser, not a requirement.

Exchange control: the step you cannot skip

The Central Bank of Barbados states plainly that permission is required from the Central Bank for the purchase of real estate situated in Barbados by a non-resident. In practice your Barbados bank, acting as an authorised dealer, and your attorney handle most of the paperwork, but you should understand what is happening in your name.

• Send your purchase funds to Barbados through an authorised dealer, usually a licensed Barbados bank, which documents receipt of the foreign currency and its Barbados dollar equivalent.
• Supporting documents, such as the sale and purchase agreement, are submitted to the Central Bank of Barbados.
• The Central Bank issues an electronic approval on Form FI, which you should keep safely with your title documents.

Why registration matters when you sell

The Central Bank's guidance says the record of approval should be retained and presented to the Central Bank at the time you apply to repatriate funds. In other words, registering your money on the way in is what gives you the right to convert your sale proceeds back into foreign currency and send them home later.

If the funds were never registered, repatriation can become slow and complicated. Make sure your attorney confirms in writing that the Form FI approval has been obtained before completion.

Funding the purchase

Central Bank guidance notes that non-residents are not normally allowed to borrow locally to finance such purchases, so most overseas buyers complete in cash from foreign funds or arrange finance in their home country against assets there.

The Barbados dollar is pegged to the US dollar at US$1 = BDS$1.98, according to Invest Barbados, and higher-end property is commonly priced in US dollars. For British buyers that means your real exposure is the pound-to-US-dollar rate, which is worth factoring into your budget.

The buying process in brief

Conveyancing is handled by an attorney-at-law, who investigates title, prepares the conveyance and deals with exchange control. On costs, PwC's Barbados tax summaries report stamp duty of BBD 10 per BBD 1,000 on real estate sales and a property transfer tax of 2.5%, with land that includes a building taxed only on value above BBD 150,000; we cover the full cost picture in a separate guide.

Rules and rates can change, so confirm the current position with the Central Bank of Barbados and the Barbados Revenue Authority before committing. You can browse Barbados listings and buyer guides on Habio to get a feel for prices and locations while you plan.