Property Tax
In Barbados, property tax is levied on the ownership of all real estate. The rate of property tax is determined by the value of the property, with higher-value properties being subject to a higher tax rate. Property tax is typically due annually and is calculated based on the assessed value of the property. The assessed value is determined by the Barbados Revenue Authority.
Capital Gains Tax (CGT)
Capital Gains Tax is not applicable in Barbados. This means that there is no tax on the sale of property in Barbados.
Inheritance Tax
Barbados does not have an inheritance tax. This means that there is no tax on the transfer of property through inheritance.
Gift Tax
Barbados does not have a gift tax. This means that there is no tax on the transfer of property as a gift.
Tax on Property Income
Income from rental properties in Barbados is subject to income tax, which is levied at a rate of 25%. In order to be taxed on rental income, the property must be registered with the Barbados Revenue Authority. The owner of the property must file an annual tax return and pay tax on the rental income received.
Tax Advantages in Buying a House in Barbados
There are several tax advantages to owning property in Barbados. Firstly, as mentioned, there is no Capital Gains Tax or Inheritance Tax. This means that any gains made on the sale of property or transfer of property through inheritance are not subject to tax. Additionally, income from rental properties is taxed at a relatively low rate of 25%. Finally, there is no annual property tax on the ownership of property in Barbados.
Further Information on Taxes and Fees in House Purchasing/Selling in Barbados
For the most up-to-date information on taxes and fees involved in house purchasing/selling in Barbados, please consult the Barbados Revenue Authority. The Barbados Revenue Authority website can be found at https://www.bra.gov.bb/.