From Silicon Valley to Barbados

British born entrepreneur Martin MacDonald, his wife Laura, a development strategist, and their children Will and Harriet relocated to Barbados in late 2020 as part of the new Welcome Stamp Visa Programme. For the previous six years, the MacDonalds had been living in Silicon Valley, California, where Martin had initially worked for a global leader in the online travel industry, prior to establishing his own digital travel consultancy company.

Laura

When Covid hit California, it hit hard. The lockdown impacted our family so much that I soon started to worry about our general health and mental wellbeing, especially for the children. Early on in the Pandemic we anticipated that there would be restrictions well into 2021 and so, when the State Governor announced that schools would not be opening in August 2020, we were not surprised. That was probably the moment when I first started to vaguely consider the possibility of leaving California.

Martin

In a complete quirk of fate and immaculate timing, I happened to notice that the word Barbados was suddenly trending on Twitter. It turned out to be a news report spotlighting the new Barbados Welcome Stamp. Almost on a whim, I forwarded it to Laura.

Laura

Ordinarily, I would never have thought of moving to Barbados, but the idea of allowing our children to live freely again and enjoy island life for a year or so, suddenly held great appeal. As far as I was concerned, Covid had already severely disrupted their education path, so it would do no further harm to transfer them into a new system in the Caribbean. Martin and I really value the idea of being ‘global citizens’ and look for opportunities to model to the children about how to take a risk and soak up all the world has to offer.

Martin

By then I’d spent about five months running my company virtually, without seeing a single client in person, so there was really nothing stopping me from upping sticks and moving. We spent the next week doing nothing but research Barbados, carefully studying all the relevant criteria and stats we needed to consider before making a final decision. You shouldn’t underestimate all the things that need to happen to make a successful international move, and you don’t know what you don’t know. In some ways Covid has simplified things, as when your life has already been pared back, any and all choices become valuable. The main tool for my business is the internet: not only is it as good here as it is in Silicon Valley, ironically it’s also infinitely more affordable. On top of that, the time zone allows me to work normal hours and still be able to interact with my European customers in the morning and the North Americans after lunch.

Laura

Acutely aware that we were not simply setting off on an extended vacation, and particularly conscious of our responsibilities with the children, we conducted the entire decision-making process like an intellectual exercise, each of us collecting data and conducting research. Having said that, from the time Martin first sent me the link about the Welcome Stamp, it only took us four weeks to actually move to Barbados.

Compared to what we had to go through to get our visas to live in the United States, it was significantly easier dealing with the authorities in Barbados, even with Martin setting up his own company here. It impressed us enormously to witness the enterprising way that a small nation like Barbados was able to pivot and make themost of the very negative circumstances created by the Covid pandemic. That gave us a lot of confidence.

Martin

The positive attitude of all the helpful people we dealt with made us feel as if our presence would be welcomed and that Barbadians genuinely appreciated us wanting to start a new business in their country. The overall effect was that we saw our move as a good opportunity to improve our lifestyle, not as a way to escape from anything.

Laura

When we started looking for somewhere to live, we were pleasantly surprised by the wide range of lovely homes for rent. We’ve been fortunate to live in some places of real natural beauty and Barbados is up there! Disappointingly, the first house I fell in love with turned out to be unavailable. So, almost for fun, I started looking for an even better one. And, with the help of a wonderful real estate agent, I found it: Clifton Hall Great House, a National Trust listed property in St John, which we now happily call home. We feel totally privileged to live in such a magnificent, if somewhat overwhelming house. It’s another Covid quirk - in ordinary times it hosts the most fabulous events, weddings and historical tours. I dedicated much of my time to philanthropy whilst in California, and this property gives us the space to give back to our new community.

Martin

At a more mundane level, many people had forewarned us about how expensive it was to shop for groceries and other things in Barbados. And there is no doubt that many items especially imported products, can be very costly compared to some countries. However, in our experience, the overall cost of living is actually no higher than it is in many of the world’s biggest cities. But here you get the added benefit of enjoying a very desirable lifestyle. And whilst Covid affects practically every community in the world, the seriousness with which controlling it is taken by the government and ordinary people is evident here everywhere you go. Life is by no means ‘normal’, but we don’t live in fear and that is a privilege that we are grateful for.

Laura

What we most value since we moved to Barbados is that freedom to just live an everyday normal life; to enjoy simple outdoor pleasures like beachcombing with the children. That’s why we chose to live in a rural location. Nowhere in Barbados is far away, so we don’t feel isolated, just peaceful.

Martin

We also feel like we are living in the real Barbados, surrounded by real Barbadians, as opposed to only being part of an expat community. Barbadians tend to be openly friendly and willing to help whenever they can. Salt of the earth kind of neighbours. Of course, nowhere in the world is perfect and, quite naturally, there have been a few sticking points in our transition from California to Barbados. But, overall, the family’s relocation has gone remarkably smoothly. One of the unexpected benefits of life after Covid is that existing communications technology has been rapidly adapted to serve a wider purpose. For example, while I still use Zoom for my business meetings, Will and Harriet use the same platform for school and to keep in touch with their friends back in California, and we all use it to keep connected with our extended family around the world.

Laura

One of the things that we enjoy most is exploring, making our way down the road less travelled. For such a small place it feels very varied, even in the landscape. It’s interesting! There are some incredible restaurants and incredible hotels, but our favourite places are the ones where family recipes are served on paper plates and where the kids make new friends for the evening.

Martin

Yes, having learned everything we now know about Barbados since we made the big move, we’d still make the same decision again.

Lapped on either side by the waves of both the Atlantic Ocean and the Caribbean Sea, Barbados has had a centuries old history as a point from which investors from the world’s major metropoles could launch into new and emerging markets, and as a meeting point where new and old ideas combined to take on new life and spread their influence and change across the globe.

Barbados’s global influence has often belied its small stature over the centuries, and therefore the repeated expressed desire by Prime Minister, The Honourable Mia A. Mottley, to make this island a hub for global business is not wishful thinking but simply part of the ongoing evolution of the role that this island has played in the past as a major commodities and trading hub.

The global financial services and global business sector continues to be the fastest-growing pillar of the Barbados economy. A combination of factors has succeeded over the years in keeping the sector on a growth trajectory despite some homegrown and external challenges. Having finally begun to emerge from the economic doldrums of the global financial crisis, the small island nation had begun in the last few years to scale up its outreach to international investors, selling them on our stability, integrity, and strong regulatory environment meant to inspire a new level of confidence. Interest was high and 2020 had opened to visits from several high profile investors who were particularly interested in travel and tourism opportunities, including the long-term lease of the Grantley Adams International Airport. However, despite the abrupt turn of events caused by a pandemic that few imagined would unfold in their lifetime, there are still fundamentals that remain to offer a unique Barbados advantage.

In the face of the debilitating impact of the novel Coronavirus, COVID-19, on the travel sector, the island’s geographic location and solid airlift network has positioned it as a valuable logistics hub for trade and investment into Latin America and the Caribbean. Direct flights between Barbados and Panama have reinforced the notion of this island as the gateway to Latin America as mid-2021 is on schedule to see south-south connections ramped up and travel to all major south and central American cities become possible from Barbados. Airlift between major African cities in Kenya and Ghana is also being pursued in earnest by Barbadian foreign affairs and tourism officials and the reconnections between Africa and its diaspora are poised to also take flight.

COVID-19 forced another type of evolution of global business as government departments and business operating both locally and globally increasingly incorporated the use of digital technology into their business practices in a bid to survive in the new physically distanced environment. This evolution took place on the backbone of a robust telecommunications infrastructure that provides for real time shares trading and other financial transactions. This has paved the way for the Barbados Stock Exchange’s growing International Securities Market, which is on the cutting edge having opened up to trading in digitized security tokens within the past two years. This level of connectivity has become even more important as Barbados has begun to welcome a growing class of Digital Nomads to live, work and do their business across the globe in the relative security that the worst effects of the pandemic have not undermined the ability to live a high-quality life on the island.

That Barbados could be so attractive to, and an integral part of the strategic planning for, both already established global businesses that have chosen to build out their operations in fulfilment of international economic substance regulatory requirements, and individuals who have chosen to direct their worldwide operations from poolside thanks to a 12-month Welcome Stamp visa, is also driven by a professional network of individuals who provide advisory services that are world-class. From legal to financial, to compliance advice, these individuals offer structured solutions that reduce the cost of doing business while propelling growth for reinvestment. This can be accomplished because Barbados has a truly global network of over 40 bilateral investment treaties and double taxation agreements that provides protection while standing up to the scrutiny of multilateral authorities.

The offshore/onshore dichotomy has been removed from the Barbados business environment since 2019, as the corporate tax rate was harmonised for both domestic and international entities. With that came the expectation, in a time before COVID-19, that a lower tax burden would equally allow indigenous Barbados businesses to contemplate competing regionally and even empowering them to go global in the industries where they have an advantage. The changes to the tax regime was just one part of a revamp of commercial legislation on the island that saw the Companies Act updated and revisions to the legislation covering insurance, banking and trusts to ensure that the framework on which solutions can be built and offered is keeping pace with international expectations.

The island extends a well-regulated and supportive environment for business and it is expected that, once the uncertainties of the pandemic are brought under control, the dream of Barbados as a true global business centre can be realised.

The Barbados International Business Association (BIBA) was originally formed in 1993 under The Barbados Association of International Business Companies and Offshore Banks (BAIBCOB). Four years later it was incorporated under the Barbados Companies Act (Cap 308). In November 1997 a decision was made to embrace a more diverse membership and the Association’s name was changed BIBA. This change welcomed members of the former BAIBCOB, the Canada Barbados Business Association as well as the Barbados International Insurance Association. BIBA is a private sector organization that is comprised of companies involved in international business in Barbados; including companies that may only be locally registered and companies that are otherwise strategically associated with this sector. BIBA has a current membership of over 170 companies.

BIBA’s key functions are to:

•be the industry’s voice for social and governmental concerns;

•provide a forum for membership exchange of information an ideas;

•be the catalysts or creating and maintaining public and private sector unity for Barbados’s development;

•liaise with and facilitate the work of the relevant government ministries, statutory boards and other organizations involved in the development and regulation of international business in Barbados;

•be an invaluable partner to the government and the people of Barbados as it relates to the country’s developmental efforts;

•be an authority and major source of information on matters

Careen Byfield-Leyshon Managing Director

relating to international business;

•be a major point of contact for helpful advice and orientation for new investors to the island.

BIBA members are open to an array of benefits that are designed to give their businesses the ability to function according to their individual goals and objectives. These include, but are not limited to:

•the offering of input into laws, regulations and policy decisions affecting international business;

•the accessibility to valuable sources of information and analysis Of developments in the sector;

•the availability of an attractive medical plan to all members in good financial standing;

•listing in the on-line BIBA members’ directory;

•networking opportunities with local and international contacts;

•the ability to post press releases of business or corporate developments on BIBA’s website at preferential rates.

Conveniently, the BIBA office is located in the heart of St. Michael, a mere 2.7km from the capital of Bridgetown. Please see the below contact information. Postal Address:

19 Pine Road, Belleville, St. Michael, BB11114, Barbados

Telephone: (246) 537-2422 • Facsimile: (246) 537-2423

Email: biba@biba.bb

Website: www.biba.bb

Concorde Bank Limited

The Corporate Centre, Bush Hill & Bay Street, St. Michael BB14038, Barbados

Tel: 246 430 5320 Fax: 246 429 7996

Email: concorde@concordebb.com

“Global Experience, Wealth Management, Custodian, Administration of Corporations & Mutual Funds”

Heather Tull - Attorney-at-Law

Suite 101, Lauriston Building, Lower Collymore Rock, St Michael, Barbados

Tel: (246) 427-3174

Fax: (246) 436-9541 daveking@caribsurf.com www.barbadoscorporatelaw.com

Anthony G. Ellis - President

Great Pacific Management Limited

4th Floor, Williams Tower

Warrens, St. Michael, BB22026

Barbados, W.I.

Tel: 1 (246) 417 3405

Fax: 1 (246) 425 1133

Email: aellis@greatpacificgroup.com

A Jim Pattison Group Company

Anthony G. Ellis - President

Great Pacific Insurance Management Ltd. 4th Floor, Williams Tower

Warrens, St. Michael, BB22026

Barbados, W.I.

Tel: 1 (246) 417 3405

Fax: 1 (246) 425 1133

Email: aellis@greatpacificgroup.com

A Jim Pattison Group Company

Liza Harridyal-Sodha, LL.B. (Hons.), LL.M., TEP

Attorney-at-Law

The Grove, 21 Pine Road

Belleville, St. Michael BB11113, Barbados

Tel 246.228.9888 • Fax 246.228.9382

Cell 246.231.9609

E-mail liza@lizalaw.com • www.lizalaw.com

We specialize in international financial services, establishment of companies (IBC, SRL, Banks, Insurance Companies), Estate Planning & Taxation, Conveyancing, Commercial/Corporate matters, Employment