Key Reasons for Choosing Barbados
An underpinning feature of Barbados' value proposition is the tax advantages offered. Barbados is a reputable, low-tax jurisdiction for international business, having a high level of transparency, disclosure and procedures for tax information exchange. Multinational companies can minimize their global tax burden by using a Barbadian entity to conduct business overseas.
Barbados offers a range of tax-efficient vehicles through which international business can be conducted. These international business entities enjoy tax and other incentives locally, including low rates of corporate tax, exemption from withholding tax on dividends or other income paid to non-residents, exemption from taxes on the transfer of certain assets or securities to non-residents and freedom from exchange controls. Capital gains are not taxed in Barbados and the recently instituted participation exemption regime, exempts from tax the dividends that a Barbadian resident company receives from an overseas company in which it has a substantial shareholding. International business entities which establish themselves as regular business companies can be granted export allowances with the potential to reduce the effective tax rate to 1.75%.