For a typical Barbados resale, the buyer’s main extra cost is their own attorney: commonly 1% to 2.5% of the price plus 17.5% VAT. The seller normally pays property transfer tax (2.5%), stamp duty (1%) and the agent’s commission. There is no buyer’s agent fee when you use us. After you buy, you pay annual land tax on the property’s improved value.
Who pays what
| Cost | Who pays | Typical amount |
|---|---|---|
| Deposit (part of the price) | Buyer | 10% on signing the agreement for sale |
| Buyer’s attorney | Buyer | Commonly 1% to 2.5% of the price, plus 17.5% VAT |
| Registration and search costs | Buyer | Your attorney will quote these |
| Mortgage costs (if borrowing) | Buyer | Set by the lender |
| Buyer’s agent (Barbados Property Finder) | Seller | US$0 to you |
| Property transfer tax | Seller | 2.5%, on value above BBD 150,000 for land with a building |
| Stamp duty on the conveyance | Seller | 1% |
| Agent’s commission | Seller | Commonly around 5% plus VAT |
Worked example: a US$1.5 million home
Price US$1,500,000, which is BBD 3,000,000 at the fixed rate of two to one. The figures are illustrative; your attorney will confirm exact amounts.
| Item | Buyer pays | Seller pays |
|---|---|---|
| Deposit on signing (10%) | US$150,000 (part of the price) | – |
| Attorney at 1% to 2.5%, plus 17.5% VAT | US$17,625 to US$44,063 | Own attorney |
| Buyer’s agent fee | US$0 | Paid from the commission |
| Property transfer tax: 2.5% of (BBD 3,000,000 − BBD 150,000) | – | BBD 71,250 (US$35,625) |
| Stamp duty, 1% | – | BBD 30,000 (US$15,000) |
These are the seller’s costs here, but they become yours when you sell. Factor them into your plans for holding the home.
Annual costs after you buy
Land tax is charged every year on the improved value, in bands: 0% on the first BBD 400,000, 0.1% from BBD 400,000 to 550,000, 0.7% from BBD 550,000 to 950,000, and 1% above BBD 950,000. On an improved value of BBD 3,000,000, that comes to about BBD 23,450 (US$11,725) a year:
- First BBD 400,000 at 0%: BBD 0
- Next BBD 150,000 at 0.1%: BBD 150
- Next BBD 400,000 at 0.7%: BBD 2,800
- Remaining BBD 2,050,000 at 1%: BBD 20,500
Also budget for insurance (including windstorm cover), maintenance, staff and utilities. In a managed community, add estate or HOA fees. Ask for the last two years of service charges before you make an offer.
Taxes you won’t pay
Barbados has no capital gains tax and no inheritance or estate tax. Your home country may still tax gains or estates, so see our guides for American, Canadian and UK buyers.
Read next
- Do I need a buyer’s agent in Barbados?
- Rental income in Barbados: what to expect
- New developments in Barbados: buying off-plan in 2026
Mike has lived in Barbados for 10 years and spent more than 25 years in international sales, including as Head of Sales at The Crane Resort and Royal Westmoreland. He acts only for buyers, and you pay no fee because the seller pays the agent’s commission.
Last reviewed November 2026
WhatsApp MikeThis is general information, not legal or tax advice. Confirm the details with your Barbados attorney and your tax adviser at home.