Barbados A Preferred Domicile For Investment

Barbados Welcomes YOU, and Your Investment

Or if you're not here yet, we're confident it's just a matter of time.

Barbados is attractive to investors as a secure and reputable jurisdiction that facilitates global growth and profitability, in various sectors including international business, financial, wealth management and insurance services, global education services, information & communication technology (ICT), renewable energy, medicinal cannabis, fintech and niche manufacturing, to name a few.

Emerging sectors are growing exponentially around the world and Barbados is well-positioned to benefit from this. Our success as a centre for global business has been built on transparency, effective regulation, adherence to international best practice standards and the attraction of businesses of substance. Additionally, Barbados is the only Caribbean jurisdiction with an established and growing Double Taxation Agreement (DTA) network that enables investors to enhance their global competitive advantage. On the ground, we have the infrastructure, highly-skilled workforce, competitive costs and tax structure and, importantly – a supportive government wanting you to succeed.

Read on to learn more about Barbados' investment opportunities across our diversified economy – there's an opportunity for everyone. Some priority sectors have special incentives like concessions on imports and tax allowances – refer to our incentives section for more details.

Ready to make the next move? Our doors at Invest Barbados are always open, and the experienced team is ready to support you through your investment journey.

Quick Facts

Why Barbados?

We know you have options. But we're confident you'll come to the conclusion that Barbados offers everything that your business needs with all that your heart desires.

Here's why:

• A business-friendly environment for businesses of substance, with a pro-investment Government ready to support you
• A long history of political and social stability, with a legal system based on English common law – so your investment is safe here
• Excellent physical infrastructure with an international airport and modern seaport to get you and your goods on and off the island quickly and efficiently
• The right people for the job – Barbados has a well educated and available pool of qualified industry professionals
• All the connectivity you need – we have island-wide 4G LTE and fibre optic high-speed internet
• An expanding international treaty network, ensuring clarity and straight-forward tax considerations
• All of the above while enjoying an enviable lifestyle in the most beautiful location. Think world-class sporting events, a packed social and cultural calendar, exquisite local dining, excellent schools, top-notch health system and more. Life in Barbados is good and you'll fit right in.

Investment Incentives

Let's dig a little deeper. Here are some of the specific incentives that make Barbados the right choice for your business or investment.

• Foreign Currency Permit: Entities that earn 100% of their income in foreign currency, are entitled to receive a Foreign Currency Permit (FCP). Holders of an FCP benefit from exemption from exchange control, and once engaged exclusively in the trade of services, machinery, equipment, appliances, fixtures, raw materials etc., are exempted from certain taxes and duties.
• Duty free concessions: Some industries such as manufacturing, renewable energy and tourism have specific duty free concessions on imports, tax exemptions, training grants and more.
• Tax losses: Tax losses brought forward and available for offset are restricted to 50% of taxable income in any income year.
• Double Taxation Agreements: These agreements offer reduced withholding tax ranging from 0-15%. Barbados has an expanding treaty network with 40 Double Taxation Agreements with countries including Canada, China, Cuba, Mexico, the UK and the USA.
• Competitive tax rates: The general tax rate is 9% with lower rates for specific sectors: 5.5% for approved small business; 0%-2% for insurance, depending on class entity; 4.5% on income derived from intellectual property in Barbados.

Attracting Businesses of Substance

Economic substance is a G20/OECD global initiative that requires companies to demonstrate that the profits they register are commensurate with their economic presence and activities in the jurisdiction in which they reside. The Companies (Economic Substance) Act 2019-43 took effect on November 29, 2019, requiring companies to satisfy the economic substance test in relation to any relevant activity carried on in Barbados by the company. An entity whose business is directed, managed and controlled from Barbados is defined as a "Resident Company" and must satisfy the economic substance test.

More details on The Companies (Economic Substance) Act 2019-43 are available on the Invest Barbados website.

Further details are available on the Invest Barbados website.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.