Barbados Property Investment
If you are thinking of renting your apartment, the rents currently being achieved for annual tenancies for a one-bed unit is about US$1000 (BDS$ 2000) per month. For annual tenancies, the 2-bed town house or 3 bed apartment we estimate would rent at about US$ 2000 (BDS$ 4000) per month.
Holiday lets - Daily rates
A guide for the daily rates that you might expect to achieve for holiday makers at Springcourt is as follows:-
Studios - US$ 100
One-bed - US$ 150
Two-bed - US$ 260
Three-bed - US$ 290
This is the high season rate - the low season rate would be about 30% less. The higher rate period is December to April and July and August. The estimated occupancy rate is 50% to 70%.
You will need to open a bank account in Barbados. You can get the application forms from the Bank of your choice. You will need identification 2 documents with photos and a utility bill showing you home address. It is wise to get the bank to confirm what they will accept.
Letting Management charges - Springcourt Management Company
Commission for short term rental is 10% of the rent plus 15% VAT. This includes collecting rent, handling problems & managing inventory, depositing to local accounts and paying any bills.
Maid to clean with laundry included approx. BDS$75.00 each time.
This includes bed linen and towels, NOT personal items.
You may also make your own arrangements to rent out your property.
There is no Capital gains tax or Inheritance tax in Barbados.
VAT is 17.5%
Profit received from letting property is taxable in Barbados, however, your tax position is personal to you and you should be sure to seek appropriate legal and tax advice. Taxation is liable to change and announced in the annual budget statement.
The current personal tax rates are:
|Tax rate||Barbados dollars|
Information from www.lowtax.net
Non-residents (individuals) who buy a condominium and rent it out
Non-residents must provide the government with an income statement less the expenses which will then show their net income. From this amount there are various allowances that the government permits, once these are deducted what remains is taxable income.
It is recommended that you seek advice from an accountant about your personal tax position.
There are no death duties in Barbados but you will need to clarify your personal tax arrangements.
Residency in Barbados
If you are not a Barbadian citizen or resident, you can live in Barbados as long as you own a property and can supply information indicating that your income will come from abroad. The immigration department may give a special entry permit allowing residence for 5 years. This is renewable. If you are over 60 years you can apply for immigrant status in retirement. All applications to reside in Barbados should be made to:
Chief Immigration Officer
Careenage House, The Wharf,
Tel: (246) 426-1011
For more details see www.barbados.org and search for “Relocating To Barbados”.