Updated: Aug 20, 2021
Rianna Holas | Mithril International
Barbados is one of the Caribbean’s safe stable destinations that is ideal for international business owners and families and has so much to offer. Its idyllic tropical climate, pristine beaches and crystalline waters are what makes the island well-known for luxury travel, real estate and leisure however, Barbados has and will continue to position itself as an established international financial center and a hub for international business and wealth management.
This diversified jurisdiction offers many benefits for expatriates who decide to live and move their business and families to the gem of the Caribbean Sea, here are some of the top reasons :
1. Well-developed infrastructure Barbados’ business friendly environment and well-developed infrastructure enables residents and non-nationals to conduct business efficiently. Its strong network of international relationships, contemporary air and sea ports, high standard of telecommunications, robust legal and regulatory systems and established international financial center all contribute to Barbados’ positioning as one of the Caribbean’s leading international business, wealth management and financial services jurisdictions. The standard of the infrastructure will improve your business operations and make conducting business in Barbados a rewarding experience with ample opportunities.
2. Politically, economically and socially stable environment Barbados is one of the most politically stable jurisdictions in the Caribbean. Its long history of steady growth and high global reputation of political, economic and social stability have provided a perpetual foundation for the establishment and operation of international business and wealth management platforms.
Its parliamentary system has existed since 1639, therefore making it one of the oldest in the world. Barbados has a Westminster style democracy and the Central Bank of Barbados is the prudential regulator. As an independent country, Barbados maintains High Commissions in Venezuela, Brazil, USA, UK and Canada among many others.
3. Attractive tax incentives, treaties and residency options Barbados is the only jurisdiction in the Caribbean with an extensive double tax treaty network, which includes the UK, USA and Canada. The extensive list of double taxation agreements provide non-nationals and HNWI clients with international tax planning opportunities and benefits, all of which can be tailored to protect their wealth. Owner managers and entrepreneurs who establish and manage their wealth management platforms and adopt residency in Barbados are only subject to < 5% tax on income that is remitted to Barbados for living. This alone makes Barbados the ideal jurisdiction to reduce costs of establishing and operating international business and wealth management platforms.
4. Prime location and positioning as a luxury destination Barbados’ prime location makes it a hub for international business and wealth management for clients from Latin American and North America. Clients wishing to travel to Barbados from Latin America can do so via Miami in less than 4 hours. There is an average of 30 direct flights per week to Miami and several other flights departing from major international cities such as London and New York.
5. Pathway to residency through work permits Barbados’ work permits can create an entry to residency in Barbados. Non-national clients can set up their own company and apply for a 3-5 year work permit. After 7 years, the client can apply for permanent residency and will by default be entitled to certain tax incentives and advantages. Obtaining a work permit has many benefits including declaring tax residency in Barbados. It also allows applicants to travel to and from Barbados freely during the duration of the permit.
Once an individual becomes a resident of Barbados, they are only subject to pay taxes at a rate of <5% on income remitted to Barbados for living. All other non-Barbados sourced income is tax fee and corporation tax on taxable business income is less than 5%.
6. Geographically positioned outside of the hurricane belt The easternmost island in the Caribbean has not been affected by a hurricane since 1955. The possibility of being hit by a hurricane is a great concern of many non- nationals who consider relocating to Barbados. Barbados’ unique position isolates itself geographically from the hurricane belt, therefore resulting in a lesser chance of being affected by severe weather conditions.
7. Excellent standard of education Barbados is home to some of the best education institutions throughout the Caribbean. The education in Barbados is based on the British model with many international schools following a curriculum model from the UK.
8. Robust legal and regulatory framework Over the years, Barbados has developed a robust legal and regulatory framework for the international business and wealth management industry. These developments have aided in the stringent and uncompromising law and guidelines as it relates to international business operation and compliance. Barbados is a well-regulated jurisdiction and is considered to be transparent and cooperative internationally.
9. Luxury real estate The West Coast, also known as the “Platinum Coast” of Barbados embodies a shoreline of the calm Caribbean Sea and hosts an 8 mile stretch of pristine golden sands, therefore making it a popular location for non-nationals who desire to invest in some of the most luxurious properties on the island. The West Coast is a hub for luxury lifestyle and real estate investment. It is furnished with boutique hotels, villas, condominiums, fine dining restaurants, bars, world renowned golf courses, pristine beaches and luxury retail brands.
Know more about Mithril International: