Barbados has long been admired for its turquoise waters, pristine beaches and vibrant, hospitable culture. But beyond those attributes lies a sophisticated, well-regulated business ecosystem that has positioned the Caribbean jurisdiction as a hub for global business.
nvestors continue to seek a stable and transparent jurisdiction built on sound governance. Barbados checks the box for all this and more. With its strategic location bridging North and South America, the island presents a compelling proposition for businesses aiming to access global markets while enjoying the benefits of an investment-friendly climate.
Barbados is a mature, globally respected business jurisdiction, catering to a diverse array of sectors. From financial services and insurance to fintech, ICT, renewable energy and research and development, the country features a wealth of opportunity. Additionally, the jurisdiction offers political stability, a robust legal infrastructure grounded in English common law and a tax treaty network spanning 40 countries.
Barbados is fully committed to international best practices and adheres to global standards of transparency and tax cooperation, as endorsed by the Organisation for Economic Cooperation and Development (OECD). The country’s general corporate tax rate is 9% with some sector exceptions including small businesses earning less than US$1 million, taxed at 5%; international shipping, taxed at 5.5% – 1% on a sliding scale; and insurance, with Class 1 entities taxed at 0% and Classes 2 and 3 at 2%.
Furthermore, another major development in Barbados, influenced by the OECD’s Base Erosion and Profit Shifting (BEPS) Pillar Two tax initiative, has been the introduction of a 15% Qualified Domestic Minimum Top-up Tax, which is applied to in-scope large multinational enterprise (MNE) groups with annual consolidated revenue of at least EUR750 million. Barbados has also since signed the Multilateral Convention to facilitate the implementation of the Pillar Two Subject to Tax Rule. Measures such as these ensure Barbados’ continued commitment to and compliance with global standards.
Investments in R&D activities also benefit from a refundable R&D credit of 50% of eligible expenditure. Qualifying activities span fields such as medical sciences, engineering and technology, natural sciences and financial technology. Additionally, income arising from intellectual property located in Barbados is subject to a favourable tax rate of 4.5%. These incentives enhance and support the jurisdiction’s competitive tax environment, while encouraging the growth of innovation-led sectors in Barbados.
Yet, what truly sets Barbados apart is not just its adherence to global standards and favourable tax incentives, but its people and infrastructure. The island boasts a highly educated workforce and a robust talent pool across multiple sectors. Investors benefit from reliable physical infrastructure, including a modern seaport and an international airport with extensive airlift. Additionally, the country offers a state-of-the-art ICT framework with island-wide high-speed fibre connectivity.
Barbados is equally appealing for high-net-worth individuals and senior executives looking for a balanced lifestyle. The country offers excellent healthcare, a wide range of accommodation, from boutique hotels to luxury villas, as well as a vibrant cultural scene. When you add the jurisdiction’s delectable culinary cuisine, lively arts and music, as well as its year-round sunshine to the mix, Barbados offers a compelling alignment of opportunity and quality of life!
Recent strides in digital transformation have further improved the ease of doing business. The government has rolled out initiatives designed to streamline regulatory processes, making it easier to establish and operate a business in Barbados.
And for those seeking a change of scenery while staying connected to global markets, Barbados continues to attract remote workers. As such, the jurisdiction’s Welcome Stamp visa allows professionals to live and work on the island for up to 12 months, providing an unbeatable combination of lifestyle, connectivity and stability all in one place.
Ultimately, Barbados is more than a business jurisdiction, it’s a smart decision. Whether you’re a multinational corporation seeking global expansion or a startup looking to scale, consider Barbados, a welcoming investment climate that facilitates investment, partnership and growth.
Therefore, we warmly invite UK businesses to take part in the upcoming inward mission to Barbados from November 10–14. I am confident that the conversations and collaborations sparked during this visit will play a vital role in fostering mutual growth and new opportunities for both Barbados and the UK.
There is no better time than now – Explore the opportunities!
investbarbados.org
