Key Reasons for Choosing Barbados
Expanding Treaty Network
A major benefit gained from doing business in Barbados is having access to its international tax agreements. Barbados has an expanding network of double taxation treaties which offers tax advantages to investors that use Barbadian resident entities to conduct business in other countries.
Barbados' tax treaty partners include traditional and emerging economies in the Americas, Europe, Asia and Africa. Barbados has entered into Double Tax Agreements (DTAs) with Austria, Bahrain, Botswana, Canada, CARICOM, China, Cuba, the Czech Republic, Finland, Iceland, Luxembourg, Malta, Mauritius, Mexico, the Netherlands, Norway, Panama, Qatar, San Marino, Seychelles, Singapore, Spain, Sweden, Switzerland, the UK, the USA, the United Arab Emirates and Venezuela. Tax treaties with Ghana, Portugal, Italy, Rwanda and Slovak Republic and are awaiting ratification. Barbados has initialled treaties with Belgium, Cyprus, Malaysia and Vietnam. Discussions are ongoing towards the implementation of similar conventions with other nations including Brazil, Chile, and India.
Under Barbados' DTAs, the other contracting state imposes preferential withholding tax rates on income paid to qualifying Barbadian resident entities or lower rates of tax on capital gains derived by qualifying Barbadian resident entities.
Investors that use a Barbadian entity to invest in other countries may also enjoy protection of their investment. Barbados has entered into treaties for the promotion and protection of investment with Canada, China, Cuba, Germany, Italy, Mauritius, Switzerland, the UK and Venezuela. Investment treaties with the Belgium-Luxembourg Economic Union and Ghana are awaiting ratification. Under these agreements, Barbadian entities that invest in the other contracting state benefit from provisions offering protection including guarantees of non-discriminatory treatment of their investments, the transfer of investments and returns held in the host state and recourse to international arbitration to settle disputes with the host state.