Registering a Barbados Offshore Company offers international businesses a great opportunity to maximize shareholder returns while reducing taxes on profits.
Barbados has been an industry leader in the offshore sector around the world for many decades and has been recognized as such by business leaders and government organizations. for example, the OECD has awarded the island with the exclusive “white list” ranking which acknowledges that the island state has significantly implemented the internationally agreed upon tax standards.
If you are thinking about registering an offshore company, then the island of Barbados should receive serious consideration as your jurisdiction of choice.
The Top 7 Benefits of a Barbados Offshore Company
- Very Low Taxes – The tax rate for offshore companies is just 2.5% down to 1% of profits. In addition, there are no withholding taxes on dividends or royalties. Capital gains are also completely tax exempt.
- Large Taxation Treaty Network – Barbados has taxation treaties with over 30 other countries. These treaties ensure that there is agreement between countries over how profits will be taxed as business is conducted around the world. Large and effective treaty networks greatly assistance business owners who are now able to reduce their international taxes in an ecosystem of certainty and regulation.
- Regulatory ecosystem – There is a strong legislative framework in place to govern business operations and provide the laws by which they function. With a history of strong regulation, in place for decades, business owners know that their rights and benefits will be protected.
- White List position – Barbados is one of the few offshore jurisdictions included on the exclusive white list issued by the Organization for Economic Co-operation and Development (OECD). This recognition is important to business owners who want to be sure that their business is operating from a reputable jurisdiction.
- Economic and Political Stability – Barbados has a history of economic and political stability, featuring a parliamentary system that dates back to 1639. The banking system is very strong and the economy has a long record of growth and stability.
- Educated Workforce – Barbados has a very high literacy rate that is ranked 4th worldwide by the U.N. Human Development Index. The island’s overall development is ranked 3rd in the Americas behind only Canada and the U.S.A. The high quality of human resources obtainable average that offshore businesses can hire well trained local managers, employees, attorneys, tax advisors and qualified accountants to run their business effectively.
- First Class Infrastructure – The Island has the high quality infrastructure needed to act as an international business center. This includes a developed telecommunications system, an international airport and an extensive road network. There are many international edges located on the island that can move funds around the globe and there are no exchange controls in place allowing funds to move freely.
Barbados is one of the best jurisdictions for setting up an offshore business. The country operates within a recognized and developed framework of laws and international treaties that allow business owners to legally reduce their income taxes to 2.5% or less.