🇧🇧 Barbados · Taxes
Taxes in Barbados
A low corporate tax rate and a straightforward income tax scale. Here is who pays tax in Barbados and on what income.
The tax burden in Barbados depends on your status: resident and domiciled, resident but not domiciled, or non-resident. That is what determines which income is taxed.
Who pays tax and on what income
The rules depend on the status of the individual:
- Resident and domiciled in Barbados. Taxed on all income worldwide.
- Resident but not domiciled. Taxed on income earned in Barbados and on foreign income - to the extent that the benefit from it is received in Barbados.
- Non-resident. Taxed only on income earned in Barbados.
Personal income tax rates
There are two rates - 12.5% or 28.5%. The basic 12.5% rate applies to the first 50,000 Barbadian dollars of taxable income, and the 28.5% rate applies to income above that amount.
Corporate tax and VAT
Corporate income tax is 2.5%. The standard VAT rate is 17.5%.
On a free consultation we look at your situation and tell you which tax status suits you.
Why the tax system in Barbados is attractive
Low corporate tax
The corporate income tax rate is just 2.5%.
Progressive personal income tax
12.5% on the first 50,000 Barbadian dollars of income, and 28.5% only on the amount above that threshold.
Clear rules for non-residents
A non-resident pays tax only on income earned in Barbados.
A transparent residency system
Three clear statuses - resident and domiciled, resident but not domiciled, and non-resident - each with its own tax rules.
FAQ
What is the personal income tax rate in Barbados?
What is the corporate tax rate in Barbados?
What is the VAT rate in Barbados?
Does a non-resident pay tax on worldwide income?
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