Barbados Property Investment
Rental Value
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 the 2-bed town house or 3 bed apartment rents are in the region of and US$ 2000 (BDS$ 4000) per month for annual tenancies.
A guide for the daily rates that you might expect to achieve for holiday makers at Springcourt is:
Studios - US$ 90
One-bed - US$ 150
Two-bed - US$ 250
Three-bed - US$ 300
This would be the winter rate, the summer rate would be 20% less. The higher rate would be achievable in July and August.
Car Hire
Car hire rates in Barbados vary with the size of the car, an average four seater car cost about US$450 (£240) per week to hire. Offering use of a car, at a marginally cheaper rate, with your condo is recommended as a convenience for your guests and an additional source of income for you.
Management charges - General
These would depend on the level of service you require but could be between 10% and 15% of the rent if the apartment were let annually. The costs of management for holiday lettings would depend on the level of service you choose. If you occupy or manage your apartment yourself, there would be no management charges.
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.
The "Meet and Greet" service offers two levels of service
Sandra Boodham (Tel. No. 427 4201) offers the following services:-
-
Meeting your guests at the airport and transferring them by air-conditioned taxi to the condo and return to the airport. Supply of an information pack. Charges: Meet and Greet - US$30. Taxi US$40 for both journeys. If a mini van is needed to cope with the number passengers or quantity of luggage the charge would be US$60.
-
In addition to 1 above she would visit the guests the next day and help to plan any activities they would like. She would also be available to help them cope with any emergencies that might occur while they are in Barbados. Charge: for the full Meet and Greet service US$75.
Taxation
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.
The current tax rates are:
| Tax rate | Barbados dollars | US Dollars |
| Free | First 20,000 | First 10,000 |
| 20% | Next 24,200 | Next 12,100 |
| 37.5% |
Remainder | Remainder |
Information from www.lowtax.net
[There are various personal allowances, and the minimum annual total deduction from income for a resident is BDS$15,000. In the 2003 budget, it was announced that personal allowances would be increased to BDS$25,000 in four annual increments of BDS$2,500.
Until 2002 chargeable income (after all allowances) was taxed at 25% on the first BDS$24,200 and at 40% thereafter. The basic rate is being reduced to 22.5% in 2003 and to 20% in 2004, and the top rate is being reduced to 37.5% in income year 2005, and from 37.5% to 35% in income year 2006.]
Non-residents (individuals) who buy a condominium and rent it out.
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. The tax rate is on this amount is 25% on the 1st BDS $24,200.00, then 40% on the remainder.
It is recommended that you seek advice from an accountant about you personal tax position.
Death Duties
There are no taxes on death in Barbados.
Capital Appreciation
Property prices in Barbados are stable and generally show a steady increase in value about 5% per year. Invest in Springcourt today if you're looking for rental income and capital appreciation.
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 will 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
Immigration Department
Careenage House, The Wharf,
Bridgetown, Barbados
Tel: (246) 426-1011
E-mail: Imm-dept@caribsurf.com
For more details see www.barbados.org and search for “Relocating To Barbados”