Tax on property income in Barbados
Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 15% | 15% | 15% |
| Click here to see a worked example | |||
| Source: Global Property Guide research |
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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 | |