Barbados

{"ftc_utility":"medium","fbar_trigger_notes":"US expats maintaining Barbados bank accounts in BBD or USD must report accounts if aggregate balances exceed USD 10,000 at any point during the year. Barbados banks are generally FATCA-compliant and report US account holders to the IRS. Opening a bank account in Barbados typically requires proof of address and valid immigration status.","ftc_utility_reason":"Barbados taxes residents on a source basis, so foreign-source income (such as US investment income) received by a Barbados resident may not be taxed locally, limiting FTC utility for that income. However, Barbados-source earned income is taxed at 12.5% to 28%, and those taxes paid can generate FTC credits usable against the US tax liability on the same income. For US expats earning locally in Barbados, FTC is moderately useful. For those living in Barbados on foreign income only, FTC utility is lower due to source-based exemptions.","presence_day_count_notes":"Barbados does not impose strict entry/exit day limits that would prevent the 330-day physical presence test from being met. The Barbados Welcome Stamp and other long-stay permits facilitate extended residence. Standard tourist entry permits up to 6 months may complicate bona fide residence claims if formal residency has not been established.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.125,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by a Barbados tax resident may be taxable in Barbados as ordinary income at progressive rates (12.5% on the first BBD 50,000, 28% above that). The applicable rate depends on the total amount and personal allowances available. Treaty provisions may modify this for US-source pensions. BBD 50,000 is approximately USD 25,000 at the fixed 2:1 BBD/USD exchange rate.","tax_rate":null,"locally_taxed":true},"social_security":{"notes":"Under the US-Barbados tax treaty, US Social Security benefits paid to a Barbados resident are generally taxable only in the United States. Barbados does not impose additional tax on these amounts. The treaty's saving clause means the US retains the right to tax its own citizens on Social Security regardless of residence.","locally_taxed":false,"treaty_protection":true},"roth_distributions":{"notes":"Roth IRA qualified distributions are made from after-tax contributions and grow tax-free. Barbados does not specifically legislate on Roth accounts. Because qualified Roth distributions are not taxable in the US, treaty provisions applicable to pensions are less relevant. If characterized as a return of capital rather than income, Barbados would not tax them. Tax treatment should be confirmed with a Barbados tax advisor as this area lacks specific guidance.","locally_taxed":false},"us_401k_ira_distributions":{"notes":"The US-Barbados tax treaty (1984, with protocols) provides that pension income and distributions from US retirement arrangements such as 401(k) and IRA accounts paid to a Barbados resident are generally taxable only in the state of source (the US) or may be subject to reduced Barbados taxation. In practice, US residents who become Barbados tax residents may have distributions taxed in Barbados as ordinary income at rates of 12.5% or 28% depending on the amount, but treaty provisions can limit or eliminate double taxation. The treaty should be reviewed carefully as Barbados taxes on a source basis and US-sourced pension income received by a Barbados resident may be taxable in Barbados. FTC can offset US taxes paid.","tax_rate":null,"locally_taxed":true,"treaty_protection":true}}

{"rate":0,"notes":"Barbados does not impose a capital gains tax. Gains on disposal of assets are generally not taxed for individuals or corporations.","details":{"tax_type":"Capital Gains Tax","country_name":"Barbados","country_iso_code":"BRB","source_references":["PwC Worldwide Tax Summaries - Barbados","Barbados Revenue Authority"],"last_verified_date":"2026-06-03","general_description":"Barbados has no capital gains tax. Proceeds from the sale of capital assets, including real property and shares, are not subject to tax. However, gains that are characterized as income from a trade or business may be taxed as ordinary income.","corporate_capital_gains":{"rate":0,"tax_treatment":"No separate capital gains tax. Gains of a capital nature are not taxed. Gains arising from trading activity may be treated as ordinary income and taxed at the corporate income tax rate."},"individual_capital_gains":{"rate":0,"tax_treatment":"No capital gains tax for individuals. Gains on disposal of property, shares, and other capital assets are exempt. Gains that are deemed to be income in nature may be subject to personal income tax at progressive rates up to 28%."}}}

{"notes":"Dividends paid by Barbados companies to non-resident individuals are subject to withholding tax at 15% under domestic law, reduced by tax treaty where applicable. Dividends received by resident individuals from Barbados companies are generally exempt from further income tax (already taxed at corporate level under the imputation-style system). Dividends from foreign companies received by residents are taxable as ordinary income.","rates":[{"rate":0.15,"type":"withholding","notes":"Standard domestic withholding tax rate on dividends paid to non-residents. Treaty rates may reduce this - e.g. US-Barbados treaty caps WHT at 15% (5% if the recipient holds at least 10% of voting stock)."},{"rate":0,"type":"exempt","notes":"Dividends paid by Barbados-resident companies to Barbados-resident individuals are generally exempt from further personal income tax when derived from already-taxed corporate profits."}]}