Action Plan

Gayle Hutchinson of Trident Corporate Services offers some sage pointers on how to structure your dream property investment in Barbados.

Barbados has long been a prime location for real estate investment, attracting buyers interested in luxury homes, holiday rentals and investment properties. The island, often called “Little England,” boasts stunning beaches, tranquil on the west coast and wild on the east, and lies outside the Caribbean’s main hurricane belt, with only two hurricanes making landfall since 1950.

Over the years, the Barbados property market has remained robust, featuring some of the region’s most luxurious and beautiful homes, which keep holding their value and rate of appreciation. While there was a postpandemic shortage of available properties, with demand outstripping available supply, residential sales increased by 33% in 2021 and by another 53% in 2022, according to data from Terra Caribbean.

Taking a structured approach

Many non-nationals and non-residents opt to purchase real estate in Barbados through a company rather than as individuals. This company can either be a Barbados company or incorporated overseas.

For a non-Barbados company to qualify to own real estate in the country, it must be registered as an external company in Barbados, which provides the opportunity for potential tax savings on the subsequent resale of the property.

When an individual who holds shares in an external company chooses to sell their shares in the country in which the company was incorporated, the sale does not attract Property Transfer Tax or Stamp Duty in Barbados as the sale occurs outside of its shores.

Depending on the jurisdiction in question, additional benefits of such a transaction may include asset protection, lawsuit protection, and financial privacy.

A key condition for holding and trading in Barbados real estate is that the holding company must be in good standing in both its jurisdiction of origin and in Barbados. Ensuring compliance avoids the costs and delays associated with non-compliance. This includes corporate record-keeping and settling all corporate, land and real estate taxes, such as annual land tax and annual corporation tax.

Expert assistance

With a team of professionally qualified and highly skilled individuals, Trident Corporate Services (Barbados) Ltd offers extensive experience in the registration and maintenance of offshore companies, assisting with all regulatory filings and ensuring the company remains in good standing and compliant with the law. The team also provides a full range of services for Barbados companies.

Trident Trust’s private client, corporate, fund administration and marine services divisions provide a wide range of services, supporting the lifestyle that comes with owning a dream property on a Caribbean island. Visit https://www.tridenttrust.com/americas-caribbean for more information.