Taxes In Barbados: What Investors Need To Know
Barbados offers one of the Caribbean’s most transparent and business-friendly tax systems, balancing investor incentives with regulatory clarity. Below is a simplified overview of the main taxes affecting individuals and companies in 2025.
Personal Income Tax
As of the 2025 income year, individuals are taxed progressively:
12.5% on the first BBD $50,000 of taxable income
28.5% on income above BBD $50,000
Residency rules determine how income is taxed:
Resident & domiciled: taxed on worldwide income
Resident but not domiciled: taxed on Barbados-sourced income + foreign income remitted to Barbados
Non-resident: taxed only on income earned in Barbados
Allowances & credits:
Personal allowance: BBD $40,000 (working-age) or BBD $50,000 (pensioners)
Foreign currency earnings rebate: up to 65% on tax payable for foreign income remitted via local banks
Corporate Income Tax (CIT)
Effective January 1, 2024, Barbados applies competitive corporate rates:
5.5% – on taxable income up to BBD $1 million
3.0% – on BBD $1 million–$20 million
2.5% – on BBD $20 million–$30 million
1.0% – on BBD $30 million+
Insurance companies: 0–2%
The global minimum tax of 15% applies to qualifying Multinational Enterprises (MNEs) with revenue above EUR 750 million.
Value-Added Tax (VAT)
Standard rate: 17.5% on most goods and services
Tourism & accommodation: 10%
Basic goods: many are zero-rated or exempt
Property & Other Taxes
Land Tax (annual): based on the improved value of the property
First BBD $150,000 – exempt
$150,000–$450,000 – 0.10%
$450,000–$850,000 – 0.70%
Over $850,000 – 1% (capped at BBD $100,000)
Additional taxes:
Land transfer tax: 2.5% (usually paid by seller)
Rental income: 15% flat rate on net income
No capital gains tax
National Insurance Scheme (NIS): employees 11%, employers 12.75%
Foreign exchange fee: 2% on sales of foreign currency
Compliance & Filing
The Barbados Revenue Authority, (BRA) manages all tax collection via the Tax Administration Management Information System, (TAMIS) online portal for filing and payment.
How Invest Caribbean Helps
At Invest Caribbean, we guide investors and developers through the region’s tax and regulatory frameworks. Our team can structure compliant, bankable projects and connect you with vetted lenders, strategic partners and debt-capital solutions tailored for qualified projects in Barbados and beyond.
Barbados combines lifestyle appeal with sound financial governance and attractive incentives. With one of the Caribbean’s most progressive tax systems, it remains a premier gateway for global investors seeking stability, opportunity, and long-term growth in the region.