Americas

Barbados

Corporate rate
9%
Top personal rate
28.5%
VAT / GST rate
17.5%
One-sentence summary Barbados's corporate tax position: 9. Personal income tax: 28.5. VAT/consumption tax: 17.5.

Corporate Tax Rate

Barbados's headline corporate income tax (CIT) rate is 9.

Personal Tax Rate

The headline personal income tax (PIT) rate is 28.5.

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 17.5. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

An individual is a Barbados tax resident if they: spend more than 182 days in aggregate in Barbados in an income (calendar) year (both arrival and departure days count - note this is 182 days, not the more common 183-day threshold); are "ordinarily resident" (have permanent accommodation available and have given the Revenue Commissioner notice of intent to reside for at least two consecutive income years); or were domiciled in Barbados at any time during the income year. A company is non-resident if its place of management and control is outside Barbados. Taxation then splits three ways: resident-and-domiciled individuals are taxed on worldwide income as earned; resident-but-non-domiciled individuals are taxed on Barbados-source income plus foreign income only when remitted (or deemed remitted) to Barbados - with a tax allowance of up to 65% available on foreign income remitted through the Barbadian banking system; non-residents only on Barbados-source income. Resident companies are taxed on worldwide income; non-resident companies only on Barbados-derived income.

CFC (Controlled Foreign Company) Rules: No

Barbados has no CFC provisions - confirmed independently by both PwC's corporate group taxation summary and Freeman Law's treaty summary. Freeman Law additionally notes the OECD's Forum on Harmful Tax Practices found Barbados compliant with BEPS Action 5 notwithstanding the absence of CFC rules.

Thin Capitalization

Barbados introduced a 1.5:1 thin capitalization rule effective September 1, 2019. Interest on outstanding debt owed to non-resident related parties holding more than 10% of the company is deductible only up to the extent total debt doesn't exceed 1.5 times the company's equity; interest on the excess is non-deductible. Separately, interest claimed as a deduction but unpaid within two years of accrual (one year for related-party loans) must be added back to assessable income, and management/administrative fees paid within a corporate group (including to non-residents) are generally non-deductible.

Foreign Bank Account / Foreign Financial Asset Reporting

No domestic Barbados equivalent to the US FBAR/Form 8938 requiring Barbadian residents to self-report their own foreign accounts was identified in available sources. Note that Barbados introduced a 15% Pillar Two top-up tax effective January 1, 2024, targeting qualifying large multinational enterprise groups to establish an effective minimum tax rate - this is a corporate-level global minimum tax mechanism, not an individual foreign-asset reporting obligation.

Treaty Network

Barbados maintains one of the most extensive treaty networks in the Caribbean, at approximately 33 double tax treaties, including the US, UK, Canada, and China.

Source: PwC Worldwide Tax Summaries - Barbados (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 11 January 2026. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.