Do I report a Barbados home on IRS Form 8938?

Not if you hold it directly. The IRS says foreign real estate held directly is not reported on Form 8938, but an interest in a foreign entity that holds it may be.

Is Barbados property priced in US dollars?

Most luxury homes are. The Barbados dollar has been fixed at BBD 2 to US$1 since July 1975.

Buying Property in Barbados as an American: 2026 Guide

Q: Can Americans buy property in Barbados?

Yes. Barbados has no restrictions on foreign ownership of property, and foreign owners pay the same property taxes as locals.

by Mike Ashton | Nov 12, 2026 | Blog

Short answer

Yes. Americans can buy property in Barbados on the same terms as Barbadians, with no foreign ownership restrictions. You bring the money in from abroad, the Central Bank of Barbados verifies the purchase, and your attorney registers the funds so you can take them back out when you sell. The Barbados dollar has been fixed at BBD 2 to US$1 since 1975, so you are in effect buying in US dollars.

Key points

No restrictions on foreign ownership. Foreign and local owners pay the same property taxes.
Exchange rate fixed at US$1 = BBD 2.00 since July 1975.
You pay no buyer’s agent fee when you use us. The seller pays the agent’s commission.
Your main purchase cost is your own attorney, commonly 1% to 2.5% of the price plus 17.5% VAT.
A home you own directly in your own name is not reported on IRS Form 8938. A Barbados bank account above US$10,000 can trigger an FBAR.
Direct flights run from several US cities, including New York JFK, Boston and Atlanta.

Can a US citizen buy property in Barbados?

Yes. Barbados places no restrictions on foreign ownership of property, and foreign owners are treated the same as locals for property taxes. You can buy in your own name, jointly, or through a company. A company formed outside Barbados must be registered locally as an external company before it buys.

How does the money work?

As a non-resident you pay for the property with foreign funds wired into Barbados. Your attorney applies to the Central Bank of Barbados, which verifies the purchase and registers your funds as a foreign investment. That registration is what lets you repatriate the sale proceeds later. Because the Barbados dollar is fixed at two to one against the US dollar, most luxury homes are priced in US dollars and you carry no currency risk between the two.

What will it cost me?

You usually pay a 10% deposit when you sign the agreement for sale and the balance at completion. On top of the price, the buyer pays their own attorney (commonly 1% to 2.5% plus 17.5% VAT) and registration costs. On a standard sale the seller pays property transfer tax and stamp duty. Our cost guide works through a full example for a US$1.5 million home.

Can I get a mortgage in Barbados?

Yes, but terms for non-residents are conservative. RBC in Barbados, for example, lends non-residents up to 65% of the price (a 35% minimum down payment) on owner-occupied homes, over up to 15 years. At US$1 million and above, many of our clients buy with cash or borrow against assets at home.

What do I report to the IRS?

Form 8938: foreign real estate you hold directly, whether a personal residence or a rental, is not reported. If you hold it through a foreign company, partnership or trust, your interest in that entity may be reportable.
FBAR (FinCEN Form 114): required if your foreign financial accounts together exceed US$10,000 at any time in the year, for example a Barbados account for utilities and staff.
Rental income: Barbados taxes rent from Barbados property, and you will normally also report it on your US return. The United States–Barbados income tax treaty, signed in 1984 and amended by a 2004 protocol, deals with double taxation.

Speak to a US tax adviser who knows Barbados before you choose how to hold the property.

Can I live in Barbados?

Owning property does not by itself give you the right to live in Barbados. Two routes are commonly used. The Welcome Stamp lets you live and work remotely for up to 12 months if you earn at least US$50,000 a year, for a fee of US$2,000 (individual) or US$3,000 (family). The Special Entry and Reside Permit (SERP) includes categories for high-net-worth investors and for property owners. Ask your attorney to confirm current SERP requirements before you rely on them.

Can I rent it out?

Yes. Owners of short-term tourist accommodation should register with the Barbados Tourism Product Authority (BTPA). Many West Coast communities also have their own rental rules, so check them before you make an offer.

How we help American buyers

We search listed and off-market homes, view them for you, send video walk-throughs, negotiate, and work with your attorney through to completion. You only need to fly down when you choose to. See what to expect or read our FAQ.