Selling your Barbados property is a significant financial transaction, and it’s essential to be clear about the costs involved. Whatever your reasons for selling, understanding these expenses will help you plan effectively. At Hannah Properties, we believe in keeping things straightforward. So let’s break down the common costs you’ll encounter as a vendor.
Firstly, there’s the Property Transfer Tax. The rate for this depends on what you’re selling. You’ll pay 2.5% of the agreed sale price if it’s land only. The first $125,000 of the sale price is exempt for a house and land together. After this, you’ll pay 2.5% on the remaining amount. This is a government tax on the transfer of property ownership.
Next up is Stamp Duty, which is currently set at 1% of the total purchase price. Like the Property Transfer Tax, this is another government levy associated with the sale.
You’ll also need to consider Land Tax. The exact amount you pay here will depend on the assessed value of your property and where you are in the land tax cycle when the sale closes. It’s a good idea to have your latest land tax bill handy to estimate this cost.
If you don’t have recent survey markers, you should engage a Land Surveyor. Their fees can vary depending on the size and location of your property, so it’s best to get a direct quote from a surveyor.
When you work with a real estate agent like Hannah Properties, you’ll typically pay the Real Estate Commission. The standard commission in Barbados is usually 4-5% of the final sale price. Remember that Value Added Tax (VAT) at the current rate of 17.5% is also applied to this commission. Our expertise and local knowledge help you achieve the best possible price, making this a worthwhile investment.
There are also usually some Out-of-Pocket Expenses associated with the sale. This is generally around $300 to cover things like advertising.
Finally, you’ll need to factor in Legal Fees. These are legislated and usually range from 1.5% to 2.5% of the purchase price. Getting a precise quotation from your attorney is crucial to understanding their specific charges. Importantly, VAT at 17.5% is also payable on these legal fees.
As a vendor in Barbados, you’ll likely need to budget for:
- Property Transfer Tax
- Stamp Duty, Land Tax (pro-rated)
- Land Surveyor’s fee (if applicable)
- Real Estate Commission (plus VAT)
- Out-of-Pocket Expenses
- Legal Fees (plus VAT).
At Hannah Properties, we’re committed to providing transparent and supportive service throughout your selling journey. We understand the local market and are here to guide you through each step, ensuring a smooth and successful sale of your property. If you’re considering selling, reach out to Hannah Properties—the real estate agent who puts you first.