Barbados: Offshore Legal and Tax Regimes
Taxation of Foreign Employees of Offshore Operations
This section refers to the taxation of foreign employees of offshore operations, see Domestic Personal Taxation for the general principles of individual taxation in Barbados, which also apply to the resident employees of offshore entities.
Foreign employees working in Barbados are taxed at normal rates and are subject to Barbadian exchange controls, but if their employer is able to take advantage of the special schemes described above, up to one third of their remuneration is paid tax-free and is exempt from exchange controls.
In 2006 the government introduced enhanced tax concessions for specially qualified individuals employed in the International Financial Services Sector, as follows:
- Up to $150,000 per annum 35%
- Over $150,000 but less than $500,000 50%
- Over $500,000 60%