Barbados: Living There - Tax Issues

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INDIVIDUAL TAXATION

Residents are taxed on their worldwide income at progressive rates.

INCOME TAX

The taxable income will be the gross rent less income-generating expenses. The net income is then taxed at progressive rates:

Rental Income Tax

Rental income is taxed at a flat rate of 15%.

Capital Gains

In Barbados no tax is levied on capital gains.

Tax Allowances

• BBD25,000 (US$12,531) personal allowance
• BBD30,000 (US$15,038) special allowance for resident taxpayers over 60 years in age and receiving pension
• Spouse allowance of BBD3,000 (US$1,504); can only be claimed by a married taxpayer whose spouse has no income
• Child allowance of BBD1,000 (US$501) for each minor child; maximum of two children
• Home allowance up to BBD10,000 (US$5,013) to cover mortgage interest, insurance premiums, home repairs, and renovations
• Retrofitting allowance up to BBD2,500 (US$1,253) to cover expenditure incurred on roof straps and window shutters

The penalty for failure to deliver an income tax return by the due date is BBD100 (US$), in addition to 5% of the income tax due, plus interest at 1% per month on the income tax and penalties outstanding.

The penalty for late payment of income tax by the due date is 5% of the income tax due or $10 whichever is the greater, plus interest at 1% per month on the income tax and penalty outstanding.

PROPERTY TAX

Property Taxes

For residential properties, this tax is levied on the “improved value” of the property, essentially the fair market value, as determined by the Commissioner of Land Tax.

The maximum tax payable on a residential property is BDS$60,000 (US$30,075).

Barbados - more data and information

• Lawyers (attorneys) with property law practices in Barbados

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