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Barbados: Offshore Legal and Tax Regimes

Exchange Control

There is exchange control under the Exchange Control Act 1967, applying to inward investment, local borrowing by foreigners, and remittance of funds abroad, although these are gradually being relaxed by the Central Bank. Transactions involving foreign investment are normally approved readily. Most types of offshore or nonresident entity and transaction are exempt from exchange controls, as described individually above.

Non-national residents of Barbados are allowed to maintain external accounts with authorised dealers, and may credit their (after tax) salaries to these accounts; 25% of these net amounts may be transferred overseas without specific approval.

In its 2007 financial statement, the government announced that all exchange controls relating to Caricom would be abolished by the end of that year. Eventually, all restrictions with respect to non-Caricom transactions are to be removed, although the 2007 statement specified no time frame for this.

 

 

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