Barbados is the most easterly of the Caribbean islands, situated approximately 1600 miles south east of Miami, with an area of 166 square miles and a population of 285,000. There are daily direct flights from Miami (approximately 3 ½ hours ) New York (4 hours) Canada (5 hours) and London (8 hours)
Barbados is an independent English-speaking Commonwealth country with a dynamic economy and its legal system is based on English Common Law as modified by statute. Barbados is an outstanding domicile for international business and is consistently rated in the top tier by the world’s leading agencies. Independent since 1966, the island’s stable government and strong regulatory framework create an attractive business environment for international corporations and high net worth investors. There are currently over 4,100 entities comprising of International Business Companies and Societies with Restricted Liability registered in Barbados.
Advantages of Barbados
Barbados has differentiated itself from its competitors as a leading financial centre offering the following unique advantages:
- Long history of political, social and economic stability
- Low tax rate – Barbados legislation provides attractive tax concessions and incentives. IBCs are taxed on a sliding scale from 2.5% to 0.25% depending on their profit. IBCs are entitled to foreign tax credits in relation to taxes paid outside of Barbados. There are no withholding taxes on dividends, and capital gains are tax exempt.
- Barbados has a well-developed tax treaty network which can provide attractive tax concessions and incentives, and can eliminate double taxation. The Barbados Government is committed to expanding its Treaty Network and has successfully negotiated a significant and growing number of double taxation agreements and has eleven bilateral investment treaties.
5 Tax Information Exchange Agreements (TIEAs) have been signed to promote international cooperation in tax matters through the exchange of information between signatories – with Faroe Islands, Denmark, Greenland, USA and South Africa.
Awaiting Ratification: Columbia
Awaiting signature: Germany and France
A number of other treaties are currently at various stages of negotiation.
Barbados has fared well from the increased scrutiny and regulation of financial services by international organizations such as The OECD which has determined that its regulations and tax and other bilateral treaties work effectively to provide adequate transparency and exchange of information to its trading partners. It has built a reputation as an appropriately regulated jurisdiction built on a tradition of transparency.
A well-educated and skilled workforce, as well as a developed infrastructure and telecommunications system provide significant benefits to International corporations and individuals.
Barbados Company formation is cost competitive and fast. The cost of doing business in Barbados is less expensive than in many other International jurisdictions
Barbados Residency Program: Barbados Immigration will grant to suitably qualified High-Net-Worth Persons and retired persons and their dependents indefinite Special Entry Permits, or a 5 year Stay and Reside Permit together with annual and/or indefinite work permits (subject to certain requirements). These permits allow suitably qualified non-nationals the right to live, work and retire in Barbados and to visit the island often and stay for extended periods of time. Under the non-dom program, individuals can become tax resident in Barbados and therefore subject to a very favorable tax regime including maintaining foreign currency accounts which are exempted from exchange controls. There are no restrictions on the ownership of real estate by foreign nationals and no permits or licenses are required for the acquisition of real estate An enviable and unparalleled lifestyle, great beaches and wonderful restaurants and outdoor pursuits to enjoy together with a tax efficient retirement planning option provides an attractive domicile for individuals wishing to relocate..
DGM has successfully secured an increasing number of Special Entry permits for our clients.