What are the current annual land tax rates for residential property in Barbados?

The BRA applies progressive rates on improved residential value: 0.0% up to BBD 150,000; 0.1% on the portion between BBD 150,001 and BBD 450,000; 0.7% on the portion between BBD 450,001 and BBD 850,000; and 1.0% on any amount above BBD 850,000. These bands have been in effect since the 2019-2020 tax year. The nil-rate threshold rises to BBD 400,000 from 1 April 2026.

Who pays property transfer tax and stamp duty when selling in Barbados?

Both charges fall entirely on the **seller**. Property Transfer Tax is 2.5% of the gross sale price (with the first BBD 150,000 exempt when a building is included); stamp duty is 1% of the gross sale price. The buyer is not responsible for either. Both must be paid in full before the Land Registry will register the conveyance.

Can pensioners get a reduction on their Barbados land tax bill?

Yes. Qualifying pensioners receive a 60% rebate on their annual land tax charge. Eligibility requires the owner to be aged 60 or over, in receipt of a pension, resident in Barbados for at least six months of the year, and occupying the property as their sole residence without any tenants or business use. Approved pensioners have the rebate applied automatically to current bills.

Is there a capital gains tax when you sell property in Barbados?

No. Barbados does not impose a capital gains tax on individuals or corporations. Selling property at a profit does not trigger a separate CGT charge. The seller does pay Property Transfer Tax (2.5%) and Stamp Duty (1%) on the gross sale price regardless of whether a gain or loss is made, but these are transaction taxes on value, not taxes on profit.

How often are Barbados properties revalued for land tax, and can owners challenge the assessment?

Barbados law requires revaluation at market value every three years under the Land Valuation Act, Cap. 229A; the most recent cycle was triggered by the Land Valuation (Fresh Valuations) Order 2024. Owners who disagree with their assessed value may object in writing to BRA within 21 days of receiving their land tax bill, citing grounds such as incorrect valuation, disputed ownership, or wrong property classification.

Property Tax Overview in Barbados — Rates, Rules & Filing

What is Barbados land tax and who pays it?

Barbados levies an annual Land Tax on every parcel of land, administered by the Barbados Revenue Authority (BRA) under the Land Tax Act, Cap. 78A. The tax is charged against the registered owner of the property as at the assessment date and applies to both residents and non-residents equally [SC1]. Bills are issued by BRA each May covering the financial year ahead; the 2025-2026 bills were released 12 May 2025 and are accessible through the BRA e-billing portal at bill.bra.gov.bb as well as by post [SC2]. The annual Land Tax is distinct from the taxes triggered when a property changes hands (see transfer tax and stamp duty below).

How are Barbados land tax rates structured for residential properties?

For improved land used for residential purposes, the tax is calculated progressively on the property's improved value (the combined assessed value of the land and any buildings on it). The current bands, in force since the 2019-2020 tax year and confirmed on the BRA's official FAQ page, are [SC1]:

Improved value band (BBD)	Rate on that band
Up to 150,000	0.0% (nil)
150,001 to 450,000	0.1%
450,001 to 850,000	0.7%
Above 850,000	1.0%

The nil-rate threshold is rising to BBD 400,000 for residential properties from 1 April 2026, following a commitment made by Prime Minister Mottley in the 2022 Budget and confirmed by BRA and property market commentators [SC4]. This change will remove many mid-market homes from the annual land tax charge entirely. For improved land used for non-residential purposes (commercial, industrial), a flat rate of 0.95% applies to the full improved value. Vacant land is taxed on site value rather than improved value: 0.8% for parcels under 4,000 square feet; 0.9% for larger plots valued up to BBD 450,000; and 1.0% for larger plots valued above BBD 450,000 [SC1].

What discounts and rebates reduce the annual land tax bill?

BRA publishes bills with a structured early-payment discount window. Payment within 30 days of receiving the bill attracts a 10% discount; payment in the following 30 days attracts a 5% discount. Online payments through the BRA portal have historically received the same 10% discount for an extended period [SC2]. After the discount window closes, the balance is due by 31 March of the relevant year; late payment incurs a 5% penalty plus 1% monthly simple interest [SC1].

The following statutory rebates reduce the assessed Land Tax liability [SC1]:

Pensioners: 60% rebate for owners aged 60 or over, in receipt of a pension, resident in Barbados for at least six months of the year, and using the property as their sole residence with no tenants or commercial activity on the premises.
Agricultural practitioners: 50% rebate for registered farmers using the land for agricultural production.
Hotel owners: 50% rebate on hotel properties.
Villa owners: 25% rebate applicable to villas registered with the BRA as rental properties.

Pensioners approved for the rebate in the prior year have it automatically applied to the current bill; new applicants and villa/agricultural applicants can submit forms online through the BRA portal [SC2].

How does the BRA value properties for land tax purposes?

Barbados law requires all properties to be assessed at market value every three years under the Land Valuation Act, Cap. 229A. The Land Valuation (Fresh Valuations) Order 2024 triggered the most recent revaluation cycle [SC4][SC5]. Improved properties are valued on their improved value (land plus buildings); vacant parcels on site value alone. The valuation roll is maintained by the BRA's Valuations Department. Owners who dispute their bill may object in writing to BRA within 21 days, on grounds including incorrect valuation, disputed ownership, or misclassification of use.

What taxes apply when selling property in Barbados?

When a Barbados property is sold, the vendor (seller) pays two charges before the conveyance can be registered [SC3][SC6]:

Property Transfer Tax (PTT): 2.5% of the sale price (or market value, whichever is higher), charged on the gross consideration - not on any gain. When the sale includes land and a dwelling, the first BBD 150,000 is exempt; only the excess is taxed. Bare land attracts PTT on the full price with no exemption. Governed by the Property Transfer Tax Act, Cap. 84A.

Stamp Duty: 1% of the gross sale price (BBD 10 per BBD 1,000), also borne by the vendor under the Stamp Duty Act, Cap. 91 [SC3].

The combined seller charge is 3.5% of the sale price (above the PTT threshold), plus any outstanding annual Land Tax - which must also be cleared before the Land Registry will register the transfer. The buyer does not pay PTT or stamp duty.

Does Barbados tax capital gains on property?

No. Barbados does not impose a standalone capital gains tax (CGT) on individuals or corporations. A property owner who sells at a profit does not face a separate CGT charge on that gain. PTT (above) is levied on the gross sale price irrespective of whether a gain has been made, but it is a transaction tax on value, not a tax on profit [SC6]. For a full treatment of Barbados's no-CGT position and how it interacts with income tax on business profits, see the Barbados capital gains tax overview and the Barbados country overview.

Property that is sold as part of a trade or business (for example, land held by a developer as trading stock) may be treated differently, with profits characterised as ordinary income subject to personal or corporate income tax. A qualified tax professional with Barbados expertise can advise on the correct characterisation for a specific transaction.

Property Tax Overview in Barbados

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