Tax on property income in Barbados
Effective Tax Rate on Rental Income |
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Monthly Income | €1,500 | €6,000 | €12,000 |
Tax Rate | 10.50% | 10.50% | 10.50% |
Click here to see a worked example | |||
Source: Global Property Guide research |
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 2019 |
|
TAXABLE INCOME, BBD (US$) | TAX RATE |
Up to 35,000 (US$17,500) | 16% |
35,000 – 50,000 (US$25,000) | 33.50% |
Over 50,000 (US$25,000) | 40% on all income over US$25,000 |
Source: Global Property Guide |
RENTAL INCOME
Rental Income Tax
Rental income from residential property is taxed at a special flat rate of 15%. When computing the taxable income, income-generating expenses are deductible.
Rental income earned by nonresidents is subject to 25% withholding tax. The withholding tax is credited against the taxpayer´s final income tax liability.
CAPITAL GAINS
In Barbados, no tax is levied on capital gains. However, regular capital gains on the disposal of real property may be taxed as business income.
Gains on the disposal of land may be subject to the land development duty, which is deductible in computing taxable income.
PROPERTY TAX
Land Tax
Land tax is levied on land at varying rates, depending on the land classification. Vacant land is taxed at 0.80%, non-residential land is taxed at 0.70%, and residential land is taxed at progressive rates.
LAND TAX ON RESIDENTIAL LAND |
|
TAXABLE INCOME, BBD (US$) | TAX RATE |
Up to 150,000 (US$75,000) | 0% |
150,000 - 450,000 (US$225,000) | 0.10% |
450,000 - 1 million (US$500,000) | 0.45% |
Over 1 million (US$500,000) | 0.75% |
Source: Global Property Guide |
Property Taxes
Property tax is levied at different rates, depending on the classification of the property and the property value.
A maximum tax cap of BBD60,000 (US$30,000) has been placed on residential properties. The maximum tax payable on residential properties is BBD60,000 (US$30,000).
PROPERTY TAX 2015-2019 IN RESIDENTIAL PROPERTIES |
|
TAX BASE, BBD (US$) | |
Up to 150,000 (US$75,000) | |
150,000 - 450,000 (US$225,000) | |
450,000 - 1,000,000 (US$500,000) | |
Over 1,000,000 (US$500,000) | |
Source: Global Property Guide |
PROPERTY TAX 2014-2015 IN RESIDENTIAL PROPERTIES |
|
TAX BASE, BBD (US$) | |
Up to 190,000 (US$95,000) | |
190,000 - 500,000 (US$250,000) | |
500,000 - 1,250,000 (US$625,000) | |
Over 1,250,000 (US$650,000) | |
Source: Global Property Guide |
All other properties are subject to property tax at a flat rate of 0.50%, which is levied on the "improved value" of the property.
Property tax is payable twice a year, every 01 January and 01 July.
CORPORATE TAXATION
INCOME TAX
Income and capital gains earned by companies are generally subject to corporate income tax at progressive rates. Income-generating expenses are deductible when calculating taxable income.
INCOME TAX 2019 |
|
TAX BASE, BBD (US$) | 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) | 33.50% on all income over US$15 million |
Source: Global Property Guide |