Business Barbados

Under the Barbados Land Tax Act, taxes are payable by property owners on the real estate that they own on an annual basis. The rates of tax applicable to residential property are as follows:

Improved ValueAmount BB$
0% on first190,000
0.10% on next310,000
0.45% on next750,000
0.75% on excess1,250,000

Pensioners who occupy their own homes will pay residential rates but on 50% of the amount by which the improved value exceeds BB$150,000.

Land tax is capped at BB$60,000 where a dwelling house is used exclusively as a residence by the person who owns the land on which the dwelling house is erected.[1]

With respect to commercial, industrial, hotel and villa properties, the applicable rate of land tax is 0.65% on the improved value of the property. A rebate of 50% is granted to hotels and 25% to villas, on production of a certificate from the Barbados Tourism Authority.

Unimproved commercial or residential land is taxed at 0.60% of the site value.

It should be noted that there are no estate or gift taxes in Barbados and there are no capital gains or sales taxes in Barbados other than VAT as identified above.

[1]It must be noted that this cap is no longer supported by legislation. However, this concession continues to be applied in practice by the Barbados Land Tax Department.