Tax on property income in Barbados

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

TAXABLE INCOME, BBD (US$) TAX RATE
Up to 50,000 (US$25,000) 12.50%
Over 50,000 (US$25,000) 28.50% on all income over US$25,000
Source: Global Property Guide

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


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

PROPERTY TAX

PROPERTY VALUE, BBD (US$) TAX RATE
Up to 150,000 (US$75,000) 0%
150,000 - 450,000 (US$225,000) 0.10%
450,000 - 850,000 (US$425,000) 0.7%
Over 850,000 (US$425,000) 1%
Source: Global Property Guide

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are generally subject to corporate income tax at progressive rates. Income-generating expenses are deductible when calculating taxable income.

INCOME TAX 2019

TAX BASE, BBD (US$) TAX RATE
Up to 1 million (US$500,000) 5.50%
1 million – 10 million (US$5 million) 3% on band over US$500,000
20 million – 30 million (US$15 million) 2.50% on band over US$5 million
Over 30 million (US$15 million) 1% on all income over US$15 million
Source: Global Property Guide