Barbados is the Caribbean's most easterly island, situated in the Atlantic Ocean 434km off the coast of Venezuela.

What's so special about it?

The Portuguese were the first to conquer the island in 1511 when they enslaved the Carib locals. The British landed over 100 years later and the island was associated with the UK, even referred to as Little England, until it gained independence in 1966. A flat island with tranquil waters and a tropical climate, the island has long been one of the most highprofile islands in the Caribbean and popular with the rich and famous, especially since the Sandy Lane Hotel opened in 1961. Its global profile was raised recently when it hosted the 2006 World Golf Championships and the final of the 2007 Cricket World Cup.

Best kept secrets

Barbados has a high standard of living and is the third best place to live in North America, after the US and Canada, according to the UN Human Development Index (it is 31st overall). This is mainly due to high literacy and school enrolment . . . and when it comes to access to sanitation facilities it ranks as one of the best countries in the world. It also has the fourth-highest number of female decision-makers and ties with Japan for the highest number of centenarians in the world.

Who lives here?

Since it opened in 1961, the Sandy Lane Hotel has gained a reputation as one of the best resorts in the Caribbean and has welcomed royalty, celebrities and the business elite, including Tiger Woods, who got married there in 2004. The hotel was bought by Dermot Desmond, JP McManus and John Magnier in 1997. Visitors include the Blairs, the Beckhams, Mick Jagger and Sting; and current chart-topper Rihanna is also a native.

What's the property market like?

Tthe 9/11 attacks in the US led to a decline in tourism and the Barbados economy fell by 2.6%. With the turnaround in global travel the GDP is back up to 3.5% last year and now Barbados, on a per capital basis, is the ninth most popular destination, receiving nearly half a million visitors a year. While a lot of the Caribbean is still fairly basic, James Lloyd from the Pimento Group believes Barbados is more sophisticated and there are a lot of high-end properties, resorts, entertainment and restaurants. Coastal properties, especially in the west, are expensive and the resort of Port St Charles was one of the most successful in the Caribbean with prices from around 2m. But there are also properties available in the region of 250,000 and capital appreciation is about 8-10% per annum. The Barbadian dollar is also fixed to the US dollar so Euro buyers can enjoy the current currency benefits and Lloyd reports that, thanks to Sandy Lane, Irish investors are already out-buying the Brits in their Maynard Point resort. Mortgages are available but local interest rates are high at about 8.5%.

How do you go about buying property?

The best source of information is the Barbados Advocate or the independent Barbados Property News magazine. Local agents can be found through the Barbados Estate Agents & Valuers Association. There are no restrictions on foreigners buying except for exchange control, whereby any money going in or out of the country must be approved by the Central Bank. However, James Lloyd reports there are talks in the budget to relax or reduce this. Purchase is straightforward: a bid is made and if accepted a 10% deposit paid and contracts are signed. It is best to get a local lawyer as they will need to search the register and establish title and also the vendor's lawyer will keep the money until the remainder is paid. The process takes two to three months. One issue Lloyd highlights is that service charges are high in Barbados, especially for high-end properties, where a $2m villa may have annual charges of $20,000.

Where are the best places to buy?

The west coast is where all the high-end expensive properties are and close to Sandy Lane and the exclusive Parish of Saint James. In Port St Charles prices are lower as it is less built-up and more local.

What's the rental market like?

The majority of properties are bought as lifestyle options but these can be rented out to cover service costs. Yields are low and, according to Global Property Guide statistics, of the 22 Caribbean islands Barbados has the lowest yields. The best yields are in the capital Bridgetown . . . about 4.5%.

What's the resell market like?

Properties in the medium range, around the $1m mark, on the west coast are popular but one downside is the high cost of reselling . . . up to 21%, covered by the seller.

What type of property is available?

The normal villas and beach apartments are available, however, according to the Barbados Advocate, the government has invested in new technology to provide better quality wooden homes costing around 45,000 . . . but these are targeted at locals.

Average property prices?

In the upmarket St James a 200sq m house will cost about 1m while in Bridgetown a 200sq m home will go for around 320,000.

In some of the new resorts, however, apartments cost from 250,000.

What are the tax breaks with Ireland?

Barbados has no capital gains or inheritance taxes, however tax is paid on income from rental . . . 20% on the first 8,793 and 35% thereafter.

FAST FACTS

Getting there: Direct flights from the UK.
Area: 431sq km
Population: 279,254
Currency: Barbadian dollar ( 1.00 = BBD$2.75)
Weather: Temperatures range from 21degreesC to 31degreesC.
Transport: Sir Grantley Adams International Airport is a main hub for the Caribbean and Bridgetown is also a popular cruise port. There is a good, fast and cheap bus service; taxis are plentiful but do not have metres so ask at the start; and while you can rent mopeds and cars, the roads and traffic are not great.
Going out: Rum is almost mandatory, the most popular being the Mount Gay Rum from the local factory. There is also a local beer brewery called Banks. Surfers favour Bathsheba beach, while Bridgetown is the main capital for bars.
Eating Out: Delicacies are the "Flying Fish", served breaded, fried and with a yellow sauce, and "Pepperpot", a pork stew in a spicy dark sauce. Oistins on the south coast has a popular "fish fry" every Friday and The Cliff is one of the many upmarket restaurants on the west coast.
Shopping: Bridgetown is known for its duty-free shopping and in the St Lawrence Gap there is the Chattel House Shopping Village and Little Switzerland, which specialises in luxury items.

USEFUL CONTACTS

Irish Diplomatic Representative in New York (handles Barbados): 001-212 421 6934; www. un. int/ireland Barbados High Commission in London: 0044-207 631 4975; london@foreign. gov. bb
Barbados Advocate: www. barbadosadvocate. com
Barbados Property News: www. barbadospropertynews. com
Barbados Estate Agents & Valuers Association: www. beavainc. com
Caribbean Mortgage Services Ltd: www. caribbeanmortgages. com
The Global Property Guide: www. globalpropertyguide. com
Association of International Property Professionals: www. aipp. org. uk
Federation of Overseas Property Developers, Agents and Consultants: www. fopdac. com MyOverseasProperty: www. myoverseasproperty. ie
OverseasList: www. overseaslist. com
Barbados Tourism Authority: www. barbados. org
Barbados Government: www. barbados. gov. bb
Central Bank of Barbados: www. centralbank. org. bb
Barbados Statistical Service: www. barstats. gov. bb