Barbados is a quality destination that is trusted, well regulated, and follows international best practice in capital market regulation. The Government of Barbados, in concert with its strategic partners from the private sector, remains committed to positioning Barbados as the International Financial Wealth and Management Centre of Choice in the Western Hemisphere.
Foreign direct investment is of paramount importance to Barbados and drives economic activity in the construction, distribution and general business and services sectors. Barbados is presently ranked among the top 10 captive insurance domiciles in the world and is the fourth largest recipient of Canadian direct investment (abroad) after the United States, the United Kingdom and Luxembourg. For investors, the ubiquity of Commonwealth legal features is attractive: Barbados’ well-developed legal system is derived from English Common Law and Statutes; Barbados’ modern corporate law is modeled on the Canada Business Corporations Act.
As a tax treaty jurisdiction, Barbados is firmly committed to transparency, the timely exchange of information and the avoidance of tax evasion. In fact, in their latest report, the OECD’s Forum on Harmful Tax Practices included Barbados in a list of 11 countries that are compliant with the OECD’s standards for ‘substantial activity’ legislation (their tax regimes, therefore, are not harmful). Further, on February 18, 2020, the EU removed Barbados from Annex II, after Barbados implemented all the necessary reforms to comply with EU tax good governance principles. Barbados is among 16 countries that have implemented the requirements ahead of time and among 49 countries in total that have implemented the necessary tax reforms overall. Investors still mindful of political or country risk can be assured that Barbados has been consistently ranked by the German-based Transparency International as the least corrupt country in the Caribbean and Latin America.
The Government of Barbados has progressively refined its legislation to make possible the easy establishment of international business entities, allowing investors to maximise their return on investment. In fact, multinational corporations find the island’s geographically diversified network of double taxation agreements (DTAs), bilateral investment treaties (BITS) and tax information exchange agreements (TIEAs) unique in this hemisphere and essential to their overall tax planning strategies.
Lastly, Barbados is world renowned for its quality lifestyle, sheer natural beauty, culture and, above all, the friendliness of its people. Barbados offers high-quality professional services; modern, world class telecommunications; and an excellent business infrastructure – quintessential features that have positioned Barbados as a premier destination for commerce and leisure.
For more information on the profile of Barbados as a business and investment jurisdiction, kindly consult the following resources: