How is Land Tax Calculated?

In Barbados, tax is levied every year on land. There are 3 types of land:

  • Improved Land (for Residential purposes)
  • Improved land (for Non-Residential purposes)
  • Vacant Land

From Land Tax year 2019 -2020, there has been a change to the tax rates which are as follows:

Improved Land (for Residential purposes)

  • 0.0% of land valued up to $150,000
  • 0.1% on the excess of the improved value greater than $150,000 but not exceeding $450,000
  • 0.7% on the excess of the improved value greater than $450,000 but not exceeding $850,000
  • 1.0% on the excess of the improved value greater than $850,000

Please note that tax on improved land is calculated on the improved value of the land

Improved Land (for Non-Residential purposes)

  • 0.95% on the improved value of each parcel of land on which there is a building other than a residence

Vacant Land

  • 0.8% of the site value of land where the gross area of the lot is not greater than 4,000 sq ft or 371.6 M2
  • 0.9% on the site value of vacant land measuring over 4,000 sq. ft. & valued up to $450,000
  • 1.0% on all other vacant lands

Please note that tax on vacant land is calculated on the site value of the land.

Land Tax Demand Notices (Land Tax) bills are issued annually and sent via post. Bills are required to be paid by March 31 the following year to avoid a penalty of 5% of the unpaid tax plus 1% interest per month on the principal and penalty.

Source: Barbados Revenue Authority Website

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Cherita O’dell is the Broker of this agency who brings a wealth of experience to the table, having been the Sales & Marketing Manager and Operations Manager of several 4-star hotels and in addition, the Marketing Manager of 2 luxury condo developments. She knows how to promote property for sale & rent and get them noticed. She is one of the best real estate agents in Barbados and won the The Agent of the Year award in 2019.

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