Starting a business in
🇧🇧Barbados
Checked November 9, 2026 · How we score
Corporate tax
9%
Top income tax
27.5%
Setup from
$3,000
all-in, first year
Time to form
10 days
visit usually needed
What is the corporate tax rate in Barbados?
The headline corporate tax rate in Barbados is 9% in 2026, and individuals pay up to 27.5%. Flat 9% since 2024 for companies; 5.5% for eligible companies that meet conditions set by the Barbados Revenue Authority, and 5.5% to 1% for international shipping. Large multinationals face a 15% minimum domestic top-up tax under Pillar Two. Non-resident companies are taxed only on Barbados-source income.
| Corporate income tax | 9% Flat 9% since 2024 for companies; 5.5% for eligible companies that meet conditions set by the Barbados Revenue Authority, and 5.5% to 1% for international shipping. Large multinationals face a 15% minimum domestic top-up tax under Pillar Two. Non-resident companies are taxed only on Barbados-source income. |
|---|---|
| Personal income tax (top) | 27.5% 11.5% on the first BBD 50,000 of taxable income and 27.5% above, for the 2026 income year. Welcome Stamp visa holders are exempt from income tax under the Remote Employment Act if they earn no Barbadian-source income. |
| Tax system | Worldwide income |
| Capital gains tax | 0%No capital gains tax. Property transfers attract 2.5% transfer tax paid by the seller and 1% stamp duty. |
| Dividend withholding (non-residents) | 5% |
| VAT / GST | 17.5% |
| Social security | VAT is 17.5% (7.5% for hotels and some services). National Insurance contributions are 11.1% for employees and 12.1% for employers on capped earnings. A 5% withholding on dividends to non-treaty recipients falls to 0% when paid out of foreign-source income. |
Forming a company in Barbados
| Usual entity | Barbados company (Companies Act) or Society with Restricted Liability |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $3,000–$6,500 |
| Annual running cost | $3,000–$8,000 |
| Time to incorporate | 10 days |
| Form remotely as a foreigner | No |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
The Barbados Welcome Stamp is a 12-month visa for remote workers earning at least US$50,000 a year, with a US$2,000 fee for individuals, renewable. Holders are exempt from Barbadian income tax on foreign earnings. Barbados also has retirement and entrepreneur residency routes, but no citizenship by investment.
| Digital nomad visa | Barbados Welcome Stamp, $4,167/month income |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 2/5 (1 = easiest) |
Taxes for individuals living in Barbados
Residents who are domiciled in Barbados are taxed on worldwide income. Residents who are not domiciled are taxed on Barbadian-source income and on foreign income only to the extent a benefit is obtained in Barbados, and Welcome Stamp holders are exempt on foreign earnings.
| Foreign income of residents | Partly taxed |
|---|---|
| Income tax structure | Progressive rates |
| Inheritance / estate tax | 0%No inheritance, estate or gift tax. |
| Wealth tax | No |
| Annual property tax on your home | Yes |
| Exit tax when you leave | No |
| When you become tax resident | Resident if you spend 183 days or more in Barbados in a calendar year; domicile decides whether foreign income is taxable. |
Special tax regimes
Welcome Stamp visa
Remote workers earning at least US$50,000 a year can live in Barbados for 12 months, renewable, and are exempt from income tax on foreign income under the Remote Employment Act.
5.5% eligible-company rate
Companies meeting conditions set by the Barbados Revenue Authority, including international shipping, pay 5.5% or less instead of 9%.
Double tax treaty network
Barbados has about 40 tax treaties, including with the US, Canada and the UK, making it a regional holding and financing jurisdiction.
Pros and cons
Why founders pick Barbados
- Low 9% corporate rate with 5.5% or lower for eligible companies
- Welcome Stamp visa exempts remote workers from local income tax
- No capital gains or inheritance tax
- Extensive tax treaty network and credible reputation
Watch out for
- High cost of living and company upkeep
- 27.5% top personal rate and 17.5% VAT for residents
- Pillar Two top-up tax applies to large groups
- No citizenship by investment and few residency routes beyond the Welcome Stamp
Best for: Remote workers using the Welcome Stamp · Holding and financing companies using Barbados' treaty network · Shipping and international business operators
Barbados: common questions
What is the corporate tax rate in Barbados?
9% for most companies since 2024, with 5.5% for eligible companies that meet Barbados Revenue Authority criteria and 5.5% to 1% for international shipping. Large multinational groups face a 15% minimum top-up.
How much is income tax in Barbados?
11.5% on the first BBD 50,000 of taxable income and 27.5% above that. Welcome Stamp holders are exempt on foreign income under the Remote Employment Act.
What is the Barbados Welcome Stamp?
A 12-month renewable visa for remote workers earning at least US$50,000 a year, with a US$2,000 fee for individuals. Holders can live in Barbados without paying Barbadian income tax on their foreign earnings.
Does Barbados have capital gains tax?
No. Barbados does not tax capital gains, though transfers of property attract 2.5% transfer tax and stamp duty.
Is Barbados a tax haven?
No. Barbados is a respected international business centre with real taxes, a large treaty network and no place on the EU blacklist. It abolished its old international business company regime in 2021.
Sources
Similar countries
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.