International Management Trust Services
Map of Barbados
Flag of Barbados

Barbados

Location
Barbados is the most easternly island in the Caribbean island chain, and is located 13 degrees north and 59 degrees west between the Caribbean Sea and the North Atlantic Ocean.

Size
166 sq. miles/430 sq. km

Language
English

Population
At the end of 2007 residential population stood at 280,946

Currency
The national currency is the Barbados dollar. The Barbados dollar is fixed to the US dollar US $1: BDS $2.

Barbados has traditionally engaged in the pursuit of attracting foreign investment business and has set about the establishment and expansion of its treaty network through the conclusion of the Bilateral Investment Treaties and Double Taxation Agreements. Barbados has entered into agreements with the following countries:


InvestmentTax
Canada - May 1996
China - July 1998
Cuba - February 1996
Germany - December 1994
Italy - October 1995
Switzerland - March 1995
United Kingdom - April 1993
Venezuela - July 1994
Canada - January 1980
CARICOM - July 1995
China - 2000
Cuba - April 1999
Finland - June 1989
Malta - December 2001
Norway - November 1990
Sweden - July 1991
Switzerland - Extended to Barbados from UK, 1954
United Kingdom - March 1970
United States - December 1984
Venezuela - November 1998

Income Tax Treaties
Bilateral Investment Treaty (Republic of Mauritius) - September 2004
Income Tax (Caricom Agreement) 1973 - Cap 73
Income Tax (China & Barbados) 1999 - Cap 73
Income Tax (Cuba & Barbados) 1999 - Cap 73
Income Tax (Double Taxation Relief) (Canada) Agreement, 1980 - Cap 73
Income Tax (Double Taxation Relief) (Republic of Botswana & Barbados) - 2005
Income Tax (Double Taxation Relief) (Republic of Mauritius & Barbados) - 2004
Income Tax (Malta & Barbados) 2001 - Cap 73
Income Tax (Norway & Barbados)
Income Tax (Second protocol amending United States and Barbados agreement) - 2004
Income Tax (Sweden & Barbados)
Income Tax (Switzerland & Barbados)
Income Tax (United Kingdom of Norway & Barbados) - Cap 73
Income Tax (United Kingdom, Northern Ireland & Barbados) 1970 - Cap 73
Income Tax (United States & Barbados) 1984 - Cap 73
Income Tax Convention - Sweden & Barbados) - Cap 73
Income Tax Convention (Barbados / Austria) - 2007
Income Tax Convention (Barbados / Kingdom of Netherlands) - 2007
Income Tax Convention (Barbados / Seychelles) - 2008


Business Advantages

In Barbados you will find:
  • A legal system based on English common law
  • An independent judiciary ensuring fair and impartial dispute resolution
  • Investment laws which are clear, transparent and modern, providing for easy incorporation and corporate maintenance
  • No restrictions on foreign ownership of business enterprises
  • An expanding network of Double Taxation Agreements and Bilateral Investment Treaties
  • A range of special incentive entities for conducting international business
  • An International Business Customer Charter detailing the commitments of regulatory agencies to provide swift, efficient and professional service to the international business sector
  • Social, economic and political stability
  • Modern infrastructure featuring a well-developed telecommunications and transport network
  • A well-educated and highly skilled workforce generating a ready supply of professional services

High Quality Jurisdiction
  • United Nations Human Development Index 2007: classified 31st out of 175 countries, 1st in the Caribbean and 3rd in the Americas after Canada and USA
  • EIU Quality of Life Index 2006: ranked number 33 out of 111 countries
  • World Economic Forum Global Competitiveness Index 2007/8: ranked 50th among 131 countries and 5th in the Western Hemisphere; Business Competitiveness Index 2007/8: ranked 4th in the Western Hemisphere
  • Transparency International 2007 Corruption Perception Index: ranked 23rd among 180 countries, 3 places after USA

Prudent Regulatory Environment
  • Meets or exceeds international best practices
  • Represented in main international financial organisations including the Offshore Group of Banking Supervisors, the International Association of Insurance Supervisors and the International Organisation of Securities Commissions
  • Member of the Caribbean Financial Action Task Force and regarded by anti-money laundering agencies as a clean and well-regulated domicile
  • Wide-ranging business laws, including:
    • International Business Companies Act
    • Societies with Restricted Liability Act
    • Segregated Cell Legislation / Companies Act
    • International Financial Services Act
    • Financial Institutions Act
    • Insurance Act
    • Exempt Insurance Act
    • International Trusts Act
    • Mutual Funds Act
    • Money Laundering (Prevention Control) Act
    • Regulatory and governance standards approved by the OECD in 2002

Hub for Treaty-based Business
  • Barbados has concluded Double Taxation Agreements (DTAs) with the UK, Canada, USA, Finland, Norway, Sweden, Switzerland, CARICOM, Venezuela, Cuba, China, Malta, Mauritius, Botswana, Austria and the Netherlands
  • DTAs with Mexico, the Seychelles and Ghana are awaiting signature
  • Under these taxation treaties, Barbadian resident companies are subject to lower rates of tax than would otherwise apply in the other contracting state
  • The DTA with China gives companies operating out of Barbados more advantageous tax treatment than treaties China has concluded with other countries
  • Barbados has also entered into Bilateral Investment Treaties with the UK, Venezuela, Germany, Switzerland, Italy, Cuba, Canada, China and Mauritius

Excellent Professional Services
  • Reputable international banks and major international accounting firms
  • Presence of Management Companies offering the full range of corporate and investment services
  • Institutional Investment Managers with access to products available in locations such as London, Hong Kong or New York
  • Readily available ancillary services, such as legal, actuarial and consulting services

Modern Infrastructure
  • World Class Telecommunications featuring international private leased circuits at any band width for voice and data, T1 connectivity, DSL and High-speed data links
  • Internet penetration rate of approximately 60%
  • Airport offering direct flights to major international cities such as London, New York, Miami, Toronto
  • Extensive network of roads and modern seaport facilities

Stability
  • Long-standing tradition of parliamentary democracy
  • Consistent and significant currency surplus and carefully managed capital spending
  • Low crime rate

Intellectual Property Protection
  • Signatory to the Paris, Rome, Berne and Patents Co-operating Treaties and the TRIPS Agreement
  • Legislation protecting holders of rights in relation to trademarks, patents, designs, copyrights and plant varieties

Special Incentive Entities
  • Barbados offers a range of tax-efficient vehicles through which investors can conduct international business. The International Business Company and the Society with Restricted Liability can be used to conduct business with customers residing outside of Barbados. In addition, special incentive entities are available specifically for the provision of international financial services, namely, International Banks, Exempt Insurance Companies, Qualifying Insurance Companies, Offshore Trusts and International Trusts. All of these vehicles benefit from the following cost advantages:
  • No capital gains tax
  • Exemption from withholding tax on dividends, interest, management fees, royalties or other income paid to non-residents
  • Exemption from taxes on transfers of securities and assets to non-residents
  • Freedom from exchange controls

Barbados has established an excellent reputation as a location from which to conduct international business of substance, including:
  • Financial Services
  • Information and Communication Technology
  • Manufacturing
  • Ships' Registration & Shipping Incentives