Barbados Ponders Property Incentive For The Rich

Barbados is weighing new ways to attract offshore investments.

The Central Bank of Barbados (CBB) confirmed this week that the government is contemplating providing high net worth foreigners with the right to hold and own property on the tiny island of 283,000 people.

The confirmation follows the disclosure by Euromoney.com in March that new legislation, set to become law in the near future, will allow individuals with more than US$5 million in bankable assets to become permanent, property-owning Barbados residents.

Still, the central bank, through its communication department, told the Financial Gleaner that the project is very much at an embryonic stage.

The proposal, nevertheless, mirrors efforts by other Caribbean countries that offer citizenship in exchange for investment, although it is not known whether Barbados plans to go that far.

The CBB said earlier in February that the government is moving to improve value-added in its offshore banking sector. Governor of the central bank, Dr Delisle Worrell, said then that discussions were under way with Canada on Barbados’ intention to provide a quality home market for companies of Canadian origin.New Central American markets are also being targeted for double taxation treaties.

The island has an estimated 45 offshore banks, and 3,065 international business companies registered.

Historically, investors have been drawn to Barbados because of its tax incentives, special exemptions, guarantees on future taxation, and available professional services.

Income tax is applied on a sliding scale of 2.5 per cent to 0.25 per cent.