Barbados has further expanded its network of treaties after signing a Double Taxation Agreement with Spain on December 1st, 2010.
The Barbados-Kingdom of Spain treaty is expected to boost the competitiveness of Barbadian and Spanish firms seeking to do business in the counterpart market. In particular, the Barbados Government is looking forward to local companies engaging in joint ventures with Spanish counterparts, aiding with product development and enhancing of local offerings in the tourism, financial services and renewable energy sectors. The treaty will also extend the global reach of International Business Companies (IBCs) conducting business in Barbados.
Both Governments are eager to facilitate increased trade in accordance with the treaty and as such, the Spanish Government has already indicated interest in undertaking a mission to the island to explore potential opportunities for Spanish businesses.
The Government of Barbados is hopeful that the treaty will provide the impetus for attracting other bilateral agreements, like Air Services Agreements, to further enhance the island’s competitive advantage.
To date, Barbados has signed 23 Double Taxation Agreement (DTA)s, 18 of which are in force, positioning the country as a major force to be reckoned with for international investment. As recently as September 2010, Barbados signed its 22nd DTA with Portugal. Barbados’ treaties with Ghana, Luxembourg, Panama, Portugal and Spain are awaiting ratification.