Running Costs of Owning a property in Barbados…

Barbados Villa Sales want you to have all the information you need when it comes to owning a property in Barbados, especially if you plan to rent it out while unoccupied.

Here are a few running costs to keep in mind when owning a property in Barbados.. Let’s start with the yearly costs:

• Land Tax - Site Value
  - Unimproved Land
  0.8% of anything less than 4,000 sqft.
  1% of anything greater than 4,000 sqft.
  - Improved Value (Residential)
  the first USD$75,000 is 0%
  USD$75,000-$225,000 is 0.1%
  USD$225,000-$425,000 is 0.7%
  USD$425,000-$500,000 is 1% (there is a cap at USD$500,000)
  - Improved Value (All other property) is 0.95%

• Insurance
  -Property Insurance USD$2.50-$3.25 per $500
  -Contents Insurance USD3.00-$3.75 oer USD$500

You can get a rebate on property taxes but only if applied as follows

• The property is one of Agriculture

• The property is. Villa Property

• If you are a pensioner

Some monthly costs of running your property in Barbados would include:

• Water, Electricity, Telephone, Internet, TV etc.

• HOA Fees if buying in a community where applicable

• Maintenance of garden or pool should the property have either

• Condo Fees if applicable

• Management Fee - this is for someone who does not reside on the island or who doesn’t want to have the hassle of day-to-day running of the house. This is usually a starting fee of USD$300 based on a two bedroom property that short term rents

Should you choose to rent your property in Barbados then you will have to pay commission to Rental Agents who book rentals for your property. For short term rentals or ‘holiday rentals’ it’s usually a commission of 15%-30% depending on the company. As for long term this is usually; 1 month rent for the 1st year, half month rent for the 2nd year & 1/4 month rent for the 3rd year.

Feel free to reach out about our Property Management & Holiday Rentals in Barbados, our ‘mother company’ Barbados Villa Services.