The Business Barbados Fast Facts Guide

Economic Partnership Agreement (EPA)

Among other things this agreement removes all quotas and tariffs from Caribbean exports to the EU, with the exception of sugar and rice, both of which will be liberalized over time. The EU has also agreed to open up new markets for Caribbean companies and professionals offering services to Europe, and to permit young services professionals to gain work experience in the European market.

Caribbean countries which are signatory to the agreement have agreed to gradually open their markets to European exports over the next 25 years.

Caribbean Basin Trade Partnership Act (CBTPA)

Duty free export of some products to the USA market.

CaribCan (Caribbean-Canada)

Duty free export of some products from the Commonwealth Caribbean into the Canadian market.

Shipping

The Shipping Incentives Act, of 1982, provides concessions to shipping companies engaged in the operation of passenger carrying ships, leasing of ships, shipbuilding, maintenance or repair. The concessions include a 10-year exemption from tax and customs duties on all materials connected with the company’s shipping activities.

It should be noted that following the 2017 Report of the OECD, this regime is in the process of being eliminated.

Real Estate

Buying and selling property in Barbados

There is no restriction on the purchase of property in Barbados by persons who are not citizens or permanent residents. These funds must be registered with the Central Bank of Barbados and the permission of the Exchange Control Authority obtained for the sale or purchase of property by a non-resident whether such nonresident is a Barbadian citizen or not.

The sale of property by all persons including citizens or permanent residents is subject to a property transfer tax of 2.5% plus approximately 1% stamp duty. However, the first BB$150,000 (US$75,000) of the sale proceeds is exempt from Property Transfer Tax provided that there is a building on the property. Attorney’s fees for both the seller and the purchaser are on a sliding scale generally ranging between 1% and 2% depending the sale price of the real estate.

The scale is:

Note that this is only the minimum fee that may be charged. Note that the minimum fees for the sale of registered land is supposed to be 2/3 or 1/3 of the cost for a normal conveyance (above) depending on if acting for vendor or purchaser, but the vast majority of the island is not registered as yet.

The real estate agent’s commission fees are normally 5% of the sale. Both fees are subject to 17.5% VAT. A deposit of 10% is typically due upon the signing of the purchase agreement with the balance payable on completion of the purchase.

Utilities

Electricity

Barbados has a reliable supply of electricity with rates being among the lowest in the Caribbean. The domestic and commercial supply voltage in major residential areas and in all new developments is 115/230 volts at 50Hz. In Bridgetown and some other areas, the supply voltage is 115/200volts at 50Hz.

Water

The Barbados Water Authority, a Government statutory corporation, is the sole provider of water services. Water service can be connected within 48 to 72 hours. A monthly payment for continued service is based on the meter system. The water service in Barbados is reliable and tap water is safe to drink.

Telecommunications

Barbados is equipped with a modern telecommunications infrastructure with the latest in digital technology and fibre optics systems including international direct dialing, facsimile transfer and satellite telecommunications which allows for the efficient transmission of electronic data. Internet and e-mail services as well as express mail and courier delivery are also available.

Local cell-phone operators are divisions of international telecommunications providers with service offerings that the international business traveler has come to expect, such as the ability to easily roam and the availability of high-speed 3G and 4G data networks island-wide. The International direct distance dialing code for Barbados is (1-246), followed by a seven digit local number.