Barbados: A Prime International Business Location
With a long history of hosting international business and insurance companies, as well as an enviable geographic position just north of South America and east of Central America, Barbados is ideally suited to help companies meet their global business challenges.
Gateway to Latin America
As an established and reputable international finance center, Barbados is perfectly situated to facilitate business and insurance solutions for this rapidly growing economic region.
The government of Barbados has signed or agreed to some two dozen double taxation agreements (DTAs), including with Mexico, Panama, Canada, the United States, the United Kingdom, China, CARICOM (the Caribbean Community) and Venezuela.
Reputable and Transparent
Although Barbados also will share tax information and enact other trade agreements, DTAs have proven the most substantial and reputable type of accord. These agreements are the product of a robust, but fair, regulatory regime and attractive tax structure, and transparency that has earned Barbados a spot on the white list published by the Organisation for Economic Co-operation and Development (OECD).
While Latin America is becoming an increasingly important focus of business for Barbados and JLT Towner, the country is among the top recipients of foreign direct investment from Canada. The United Kingdom and United States remain important business partners.
Barbados Fine-Tunes for Business
A tax rate below 1% for International Business Companies (IBCs), Societies with Restricted Liabilities (SRLs), offshore banks and other financial entities is a major reason why companies choose Barbados as a domicile, but not the only reason. Barbados continues to fine-tune its business environment.
In 2012, the government announced two new initiatives designed to make Barbados even more attractive for business:
· Foreign Earnings Currency Credits (FECD) for some businesses. Companies in oil and gas exploration, licensing and sublicensing of intellectual property and select other industries will receive this credit, based on the exchange difference of currencies, against their taxable liability. This change rewards companies earning foreign currency.
· Fine-tuned immigration rules. This component promotes credible foreign investment by making available special-entry permits for high net worth individuals. Dependent children are admitted free. These permits were difficult to obtain in the past. While permits cost BDS $30,000, they are usually much less after applying the exchange rate.