Country code – BB
Legal Basis – Common law
Legal framework – Foundations Act of 2013
Regulatory board – Barbados Financial Services Commission
Liability - The properties and resources of a Private Foundation constitute an independent patrimony from that of the Founders, the Foundation Council members, Protector, and Beneficiaries.
Endowment of assets – The minimum endowment of assets may not be less than BBD 10,000, or the equivalent in another currency, in assets or cash.
Founder – The founder is who establish the Foundation, it may be a juristic or a natural person.
A Founder may in the charter or by-laws reserve for him or her or any other person, the right to direct approve the investment activities of the foundation, amendment of the charter or by-laws, appointment or removal of a councillor and of any supervisory person, the rights, entitlements and restrictions of a beneficiary, the addition or exclusion of a beneficiary, the proposed continuation of the foundation as a foundation registered or otherwise established under the laws of a jurisdiction other than Barbados or the dissolution of the foundation.
Founder details are not available to the public.
Foundation Council – The appointment of a Foundation Council is mandatory. Councilors may be natural persons or corporate bodies. Councilors cannot be a minor person if a company cannot be involved in any legal proceedings. The guardian cannot be the sole councilor.
At least one council member must be resident in Barbados. Details are not disclosed in a public registry.
Councilors must administrate the assets of the foundation, exercise powers of the foundation, enter into transactions, contracts or lawful business to fulfill the purposes of the foundation shall provide information to the beneficiaries and the Guardian relating to the property endowment and shall make distributions.
The Councillors shall keep foundation assets information confidential.
Guardian – Appointment of a Guardian is optional, and may be an individual or a corporate body. A Guardian must ensure compliance by the foundation and the councilors with the provisions of the charter, bylaws and the Foundation Act, and must supervise the management and conduct of the foundation by the councilors.
The Guardian shall have full right of access to the books, records, and accounts of the foundation.
Beneficiaries – The beneficiaries of the Foundation have the right to confidentiality. Information cannot be disclosed to a third party without the express or implied consent of a beneficiary.
Beneficiaries' Right to Information - A beneficiary is entitled to receive on request information from the foundation in respect of the fulfillment of the objects of the foundation; To inspect and copy the charter and any amendments, any articles of the foundation and any amendments, any audit report, books of account, any report on the financial position of the foundation and the annual accounts, any minutes of any officers meeting or meetings of foundation council or other supervisory body.
Secretary – The foundation shall have a secretary appointed by the councilors.
Registered Agent – A Barbados Foundation must have at all times a registered agent resident in Barbados licensed under the Corporate and Trust Service Providers Act.
Foundation Charter - The Charter document of the Foundation must include: the name and address of the founder; where the founder is a company, the number, and place of registration of that company; the address in Barbados for the purpose of service of documents on the founder.
The Charter shall also include the purposes and objects of the foundation; the initial assets of the foundation and a statement of those assets; the manner of designation of the beneficiary or the identification of a person, body or class of persons by reference to which the beneficiary is to be ascertained; whether a foundation is established for a definite or indefinite period, if a definite period must be specified; the name and address of the secretary to the foundation and the registered address of the foundation.
The charter may also include provisions for the reservation of rights or powers to the founder; appointment, period of office, removal and representative authority of the councilors and auditors of the foundation, including the number and description of those persons; for the appointment, removal, duties, functions and remuneration of a guardian; for the appointment of persons to act by way of a power of attorney or otherwise to carry out particular duties on behalf of the foundation; permitting amendment to the charter and specific circumstances in which the charter may be amended; requiring or permitting the making of by-laws; providing for the transfer to the foundation of supplementary assets in addition to the initial assets; and for the addition or removal of beneficiaries.
Foundation By-laws – The foundation by-laws are optional, and they may state the distribution of assets, identification of the beneficiaries, minimum assets to do distributions, identification of remaining beneficiaries upon a winding up of the foundation and the regulation of the governing bodies of the Foundation
Forced Heirship – No foundation established in Barbados shall be void, voidable, liable to set aside or defective in any manner by reference to the law of a foreign jurisdiction.
Re-domiciliation – Redomiciliation of foundations from other jurisdictions to Barbados is allowed, as well as, migration of Barbados foundations to other countries.
Mergers - There is no ability for a Barbados foundation to merge with any other entity.
Charitable/Philanthropic Purposes - Permitted.
Electronic Signature – Allowed.
Compliance – A Foundation shall keep accounts and records for 6 years as would be necessary to reflect, accurately, the financial position of the foundation, and minutes of all meetings of its foundation council and copies of all resolutions passed by its council.
The accounts, records, minutes, resolutions, and register shall be kept at the registered address of the Foundation or at such other place as the foundation council may designate. At all reasonable times, such accounts and records shall be open to inspection b the registered agent, the councilors, and where applicable its secretary, guardian or auditor.
If the accounting records are kept outside Barbados, the foundation must ensure that it keeps at its registered address, accounts and returns adequate to enable the councilors to ascertain on a quarterly basis, the financial position of the foundation with reasonable accuracy.
Foundations are subject to a registration fee and an annual fee.
- Corporate founder permitted * *
- Corporate council members permitted * *
- Protector/Guardian required * *
- Local regulated person required * *
- Founder not disclosed in a public registry * *
- Council members not disclosed in a public registry * *
- Protector/Guardian not disclosed in a public registry * *
- Beneficiaries not disclosed in a public registry * *
- Beneficiaries have right to information * *
- Merge permitted * *
- Redomiciliation permitted * *
- Charitable purposes permitted * *
- Registered agent required * *
- Common law Base legal
- BBD 10,000 Initial endowment of assets *
- 1 Minimum council members *
- 2018 AEOI *
Barbados Foundations are exempt from all local taxes and duties, provided that no beneficiaries are residents from Barbados and no physical assets located in the country are held in the Foundation.
Barbados foundations have access to tax treaties.
- Offshore Income Tax Exemption * *
- Offshore capital gains tax exemption * *
- Offshore dividends tax exemption * *
- CFC Rules * *
- Thin Capitalisation Rules * *
- Patent Box * *
- Tax Incentives & Credits * *
- Property Tax * *
- Wealth tax * *
- Estate inheritance tax * *
- Transfer tax * *
- Capital duties * *
- 0% Offshore Income Tax Rate *
- 0% Corporate Tax Rate *
- 0% Capital Gains Tax Rate *
- 0% Dividends Received *
- 0% Dividends Withholding Tax Rate *
- 0% Interests Withholding Tax Rate *
- 0% Royalties Withholding Tax Rate *
- 0 Losses carryback (years) *
- 7 Losses carryforward (years) *
- FIFO Inventory methods permitted *
- 35% Personal Income Tax Rate *
- 17.5% VAT Rate *
- 44 Tax Treaties *
Country details *
Barbados is one of the twelve countries that form the Caribbean Antilles. Its capital and the most populated city is Bridgetown.
Located in the Lesser Antilles, it is the most easterly of the islands, lying to the east of Saint Lucia and Saint Vincent and the Grenadines.
Spain conquered the island because that was where Columbus arrived on his first voyage in the 15th century. In the seventeenth century, the English turned the place into a colony of the United Kingdom. This situation remained until 1966 when its town declared independence on the 30 of November. That year he joined the UN and the Commonwealth of Nations.
It is a constitutional monarchy, with Isabel II as head of state and Governor General Elliot Belgrave as its representative on the island. Its population exceeds 290,000 inhabitants. The official language is English and its official currency is the East Caribbean Dollar (XCD), which is pegged to the US $ at 2.7: 1 ratio.
Barbados is one of the most developed countries in the Eastern Caribbean and has one of the highest per capita incomes in America.
Although the traditional Barbadian economy was based on the production of sugar, the main export commodity, currently tourism is its main economic activity, with tourists mainly from the United States and Europe.
At present, it has partially diversified its economy with industries such as manufacturing, construction, and mining.
Barbados is a CARICOM member and has concluded trade agreements with several jurisdictions, including the U.S., Canada, and the European Union.
The international business and financial services sector are one of the most important contributors to the economy of Barbados, given its business-friendly legal framework and its low tax regime.