Barbados

An individual who is both resident and domiciled in Barbados is taxed on one’s worldwide income.

An individual who is resident but not domiciled in Barbados is taxed on income derived from Barbados and on income from any other sources outside Barbados to the extent that a benefit is obtained in Barbados.

In general, a non-resident individual is taxed only on income arising in Barbados and is not entitled to personal deductions against income.

Personal income tax rates

Effective 1 January 2020, the basic rate is 12.5% and the higher rate is 28.5%. The basic rate applies to the first BBD 50,000 of taxable income; 28.5% applies to taxable income above BBD 50,000.

1 January 2020

Pandemic contribution levy

Barbados introduced a pandemic contribution levy on individuals to be levied on income from sources in Barbados, including, but not limited to, income from business, office, employment, rents, dividends, interest, and director fees. Pension income, benefits in kind, interest on Barbados Government Bonds, and foreign-sourced dividend income are excluded from the imposition of the levy. The levy is applicable to income of BBD 6,250 or more per month from 1 April 2022 at a rate of 1% and expires on 31 March 2023.