The geographical, legislative, financial and fiscal conditions plus the workforce and infrastructural aspects of Barbados have positioned the island as one of the preferred jurisdictions for the operation of international business companies worldwide. Geographical Conditions: Barbados has become “The Business Hub of the Caribbean” due to its strategic location at the Eastern side of the chain of Caribbean islands. Its close proximity to South, North and Central America, and the airline services operating seven days a week not only to North America but to London and other European countries, make Barbados an ideal place for business.
Some of the airlines that provide flights to Barbados are: American Airlines, Continental Airlines, Air Canada, Air Jamaica, Virgin Atlantic, British Airways, LIAT and Caribbean Airlines.
Legislative Framework: The legislation related to offshore companies in Barbados has been carefully designed to facilitate the management and operation of international business companies in the island. Additionally, Barbados has developed a hybrid jurisdiction with a tax treaty network which has been expanding over the past 5 years. Barbados has in force investment and double taxation treaties with the following nations:
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Barbados has also gained a distinctive reputation within the Organization of Economic Development for its constant compliance with the regulations of Anti-Terrorism and Money Laundering worldwide.
Among the most important legislation drafted in relation to the International Business Companies are: Barbados Companies Act, International Societies with Restricted Liability Act, Financial Services Act and International Business Companies Act.
Barbados is one of the first countries in the Caribbean to converge its local and international tax rates,
making its tax system globally competitive, while bringing the country in line with the Organisation for Economic Cooperation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) initiative. By implementing the new regime, Barbados is fulfilling its commitment to be fully compliant with BEPS Action 5 addressing harmful tax practices.
Read a full outline of Barbados’ Corporate Tax Regime here.
Barbados also offers high end services within the tourism sector. The infrastructure of the hotel and hospitality services in Barbados is based on high quality standards giving Barbados the reputation of a “high end tourism destination”. Also the network and telecommunication system in the island has the advantage of an experienced and professional workforce.
The Government in Barbados remains committed to improving and expanding its legislative framework to provide generous incentives, greater flexibility for investors and general conditions to facilitate international and domestic business activities.