About Barbados

Living There

Regarded as the ‘jewel’ of the Caribbean, Barbados has one of the highest standards of living and literacy rates worldwide. Despite its small size, Barbados's Human Development Index ranking is consistently among the top 35 in the world. The island's climate is tropical, with constant trade winds off the Atlantic Ocean serving to keep temperatures mild.

Economy

Historically, the Barbadian economy had been dependent on sugarcane cultivation. However, since World War II, tourism has superseded agriculture as the highest revenue raker for the economy. The government is also taking ample measures to promote tourist destinations in the country all over the world. 

Politics

Barbados is a parliamentary democracy modelled on the British Westminster system. Its Parliament comprises of thirty seats. Proposals have been made for Barbados to become a republic within the Commonwealth of Nations, with a ceremonial president replacing the British Sovereign.

Buying Guide & Process 

There are no restrictions on foreigners buying property although non-residents need to obtain permission from the Barbados Central Bank before they can purchase. Once a price agreement has been reached, the buyer and vendor sign a contract. A 10% deposit is paid by the buyer which the vendor will then hold in escrow until the title transfer is complete.

Investment Facts and Guide 

With property prices up by 20% and heightened demand for beachfront living, there has been a steep hike in land prices (especially along the west coast). This makes the Barbadian realty market a financially rewarding and stable investment option. 

Price per Square Foot/Metre 

With waterfront living becoming increasingly popular, land on the West Coast is priced at US$250 per square foot. Across the road, the same sized piece of land would cost just US$35. The average price for coastal properties in the Parish of Saint James would average US$9,500 per square metre. In Bridgetown, the average price would be US$2,550 for a square metre. Luxury beachfront houses in Port St. Charles start at US$2.75 million. Beachfront property on the South Coast would cost US$35 per square foot, while the same sized land for residential purposes would be US$10.
Please note that these figures are for 2005. Kindly contact your Better Homes consultant for up-to-date information. 

Rental Yields 

In Bridgetown, houses may, on average, earn a yield of 4.5% and can go up to 6%. Yields average 2.9% for expensive houses in Saint James, the island's exclusive high-end area. Luxury apartments here yield around 1.5%.

Rental Income Tax 

Rental income earned by non-resident individuals is subject to a 40% withholding tax. However, the nonresident individual can opt to file an income tax return. The taxable income will be the gross rent less income-generating expenses.

Capital Gains Tax 

In Barbados, no tax is levied on capital gains.