Global Property Guide

Financial Information for the Residential Property Buyer


Rental income tax is high in Barbados

Last Updated: June 22, 2018

INDIVIDUAL TAXATION

Nonresidents are liable to tax on their Barbadian-sourced income. Married couples are taxed separately.

INCOME TAX

Income is divided into different categories and the applicable tax rates depend on the source of income. Nonresidents are taxed at progressive rates, with no deductions.

INCOME TAX 2015

TAXABLE INCOME, BBD (US$) TAX RATE
Up to 35,000 (US$17,500) 16%
Over 35,000 (US$17,500) 33.50% on income over US$17,500
Source: Global Property Guide

RENTAL INCOME

Rental Income Tax

Rental income from residential property is taxed at a special flat rate of 15%. When computing the taxable income, income-generating expenses are deductible.

Rental income earned by nonresidents is subject to 25% withholding tax. The withholding tax is credited against the taxpayer´s final income tax liability.

CAPITAL GAINS
In Barbados, no tax is levied on capital gains. However, regular capital gains on the disposal of real property may be taxed as business income.

Gains on the disposal of land may be subject to the land development duty, which is deductible in computing taxable income.


PROPERTY TAX

Land Tax

Land tax is levied on land at varying rates, depending on the land classification. Vacant land is taxed at 0.80%, non-residential land is taxed at 0.70%, and residential land is taxed at progressive rates.

LAND TAX ON RESIDENTIAL LAND

TAXABLE INCOME, BBD (US$) TAX RATE
Up to 150,000 (US$75,000) 0%
150,000 - 450,000 (US$225,000) 0.10%
450,000 - 1 million (US$500,000) 0.45%
Over 1 million (US$500,000) 0.75%
Source: Global Property Guide

Property Taxes

Property tax is levied at different rates, depending on the classification of the property and the property value.

A maximum tax cap of BBD60,000 (US$30,000) has been placed on residential properties. The maximum tax payable on residential properties is BBD60,000 (US$30,000).

PROPERTY TAX 2015-2016 IN RESIDENTIAL PROPERTIES

TAX BASE, BBD (US$)
TAX RATE
Up to 150,000 (US$75,000)
0%
150,000 - 450,000 (US$225,000)
0.10%
450,000 - 1,000,000 (US$500,000)
0.45%
Over 1,000,000 (US$500,000)
0.75%
Source: Global Property Guide

PROPERTY TAX 2014-2015 IN RESIDENTIAL PROPERTIES

TAX BASE, BBD (US$)
TAX RATE
Up to 190,000 (US$95,000)
0%
190,000 - 500,000 (US$250,000)
0.10%
500,000 - 1,250,000 (US$625,000)
0.45%
Over 1,250,000 (US$650,000)
0.75%
Source: Global Property Guide

All other properties are subject to property tax at a flat rate of 0.50%, which is levied on the "improved value" of the property.

Property tax is payable twice a year, every 01 January and 01 July.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are generally subject to the flat corporate tax rate of 25%. Income-generating expenses are deductible when calculating taxable income.

 

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