Exploring investment opportunities in Barbados

Barbados blends idyllic island living with a world-class business environment, offering global investors a stable, transparent, and well-regulated jurisdiction backed by innovation, talent and international tax compliance

 
 

Barbados has long been synonymous with warm hospitality, pristine beaches and a high quality of life. But beyond its natural Caribbean charm emerges a well-regulated and robust business centre that has positioned the nation as a premier jurisdiction for global business.

In a world where much uncertainty exists across the globe, the discerning investor seeks a jurisdiction that provides a welcoming investment climate, one that is grounded in substance and good governance. As the most easterly of the Caribbean islands, with a size of 166 square miles, Barbados checks the box for all this and more, while delivering a compelling value proposition.

Over the years, Barbados has evolved into a respected jurisdiction for global business, offering a diverse range of investment opportunities. These include financial services, insurance, wealth management, fintech, ICT, renewable energy and R&D, to name a few. The jurisdiction continues to offer a competitive advantage for global investors and business entities. Boasting a tradition of political and social stability and a developed legal system based on English common law, Barbados continues to attract investors near and far, who are seeking to expand their global footprint. Additionally, the jurisdiction features an expanding network of double taxation agreements with 40 countries.

Best for business
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). As such, the country’s general corporate tax rate is nine percent with some sector exceptions including small businesses earning less than $1m, taxed at five percent; international shipping, taxed at 5.5 percent to one percent on a sliding scale; and insurance, with class one entities taxed at zero percent and classes two and three at two percent.

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 percent qualified domestic minimum top-up tax, which is applied to in-scope large multinational enterprise (MNE) groups with annual consolidated revenue of at least €750m. Barbados has also since signed the multilateral convention to facilitate the implementation of the pillar two subject to tax rule. Investments in R&D activities also benefit from a refundable R&D credit of 50 percent 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 percent. These reforms signal Barbados’ continued commitment to ensuring a level playing field for MNEs, while strengthening the nation’s corporate tax system in the process. Barbados’ value proposition for business goes beyond compliance.

What sets Barbados apart is not only the strategic benefits of doing business but the fact that its workforce is well educated and its people are warm, friendly and welcoming. Investors will also find Barbados to be a location that offers a talented and available pool of qualified industry professionals, excellent physical infrastructure including a modern seaport and international airport with efficient air connectivity, as well as a sound ICT infrastructure with fibre-optic high-speed internet. Barbados also offers an attractive option for high-net-worth individuals including quality healthcare facilities and a range of accommodation (from budget to luxury) and other amenities.

Additionally, the Barbados government has made significant strides in digital transformation with initiatives that seek to simplify the process of doing business and enhance the ease of access to services.

Living the island life
When you add the jurisdiction’s delectable cuisine, lively arts and music culture, as well as its year-round sunshine to the mix, Barbados offers a compelling alignment of opportunity and quality of life. In fact, the jurisdiction has emerged as an attractive location for remote work and digital nomads. The Welcome Stamp, a 12-month visa for remote workers, serves as an added bonus for business professionals who value lifestyle, connectivity and stability – key components of the Barbados brand and an ideal place to live and work.

Indeed, Barbados isn’t just a destination; it is an experience and an informed choice. Whether you are an MNE considering expansion to a safe and thriving domicile or an entrepreneur ready to scale globally, consider Barbados, a welcoming investment climate that facilitates investment, partnership and growth.

There is no better time than now to explore the opportunities. Further information can be found at www.InvestBarbados.org