Low taxes attract residents to relaxed and beautiful Barbados

by Property Management Software on September 13, 2013

Barbados Real Estate

Barbados Real Estate

Property in Barbados is experiencing a leap in popularity among retirees, investors and wealthy individuals thanks to new residency rules.

The 2013 Caribbean Insight Report produced by estate agency Knight Frank shows a 57 per cent increase in inquiries about property there compared with 2012.

Boasting a reputation as one of the lowest property-taxed jurisdictions in the world, new residency rules for wealthy investors introduced last year have been influential in the island’s real estate recovery.

“Individuals with assets of US$5m or more can now gain an indefinite special residency permit (ISRP) which is especially tax efficient for foreigners living on the island who earn their money elsewhere,” explained Gloria Eduardo, spokesperson for accountancy firm PricewaterhouseCoopers.

“Those eligible to become tax residents through the scheme can claim a tax credit on income from foreign sources transferred to Barbados through the banking system of up to 93 per cent of the tax.

“This translates to an effective tax rate of 2.45 per cent for an individual whose income is solely from foreign sources. Qualified applicants under 60 years of age who wish to run their worldwide business from Barbados also won’t require a work permit, which makes for a less bureaucratic process.”

Spouses of applicants qualify for a residency visa, and dependent minors or children in full-time education are granted the same residency terms as their parents.

Eduardo added: “Applicants are required to provide evidence every three years that their child is enrolled in a school in Barbados, or is being home schooled with the approval of the ministry responsible for education.”

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