Applies to persons who work in Barbados, including those who are self employed.
This is not professional advice. The information may be inaccurate, incomplete or misleading. If in any doubt, please consult a qualified tax advisor.
Basic Rate
12.5% – applies to the first BBD $50,000
Higher Rate
28.5% – applies to amounts in excess of BBD $50,000
Any person who is resident in Barbados is entitled to a Personal Allowance of—
If you are entitled to a Personal Allowance, only income exceeding that amount is liable to income tax. This means if your total annual income does not exceed the personal allowance that applies to you, no income tax is payable.
From Income Year 2025, the personal allowance for persons of retirement age and in receipt of a pension will be increased to BBD $50,000. Please note the personal income tax returns due on or before April 30, 2025 are for Income Year 2024, not Income Year 2025.
Any person who is resident in Barbados is entitled to a Spousal Allowance of BBD $3,000 per year if their spouse—
If you are entitled to a Spousal Allowance, only income exceeding that amount is liable to income tax.
Any person who is resident in Barbados is entitled to a union membership allowance of BBD $360 or the actual amount paid (whichever is lower), representing the total membership fees to a registered trade union during the tax year. [1]
Any person who is resident in Barbados and earns more than BBD $25,000 but not exceeding BBD $35,000 a year may be eligible for an income tax refund via compensatory income credit.
Any person who is resident in Barbados and earns income from sources outside Barbados may be eligible for a tax rebate of up to 65% on the income tax payable on their foreign earnings. To qualify, such income must be transferred through the banking system of Barbados.
The rate of the allowance is calculated on the percentage of the earnings which are foreign earnings:
| Foreign earnings | Rebate |
|---|---|
| 20% and under | 24% |
| Over 20% but under 41% | 31% |
| 41% or more, but under 61% | 45% |
| 61% or more, but under 81% | 55% |
| 81% and over | 65% |
Any person who is resident and domiciled in Barbados is subject to income tax on:
Any person who is resident but not domiciled in Barbados is subject to income tax on:
Any person who is not resident in Barbados is subject to income tax on:
For persons who are self employed, certain expenses incurred in connection with their trade or business may be deductible from the portion of their income which may otherwise be liable to income tax.
Foreign nationals on the Welcome Stamp visa are exempt from income tax in Barbados.
Any person whose total income exceeds the personal allowance is required to file an income tax return, which must be filed each year no earlier than April 1st and no later than April 30th for income received during the previous calendar year. For example, an income tax return must be filed between April 1st, 2025 and April 30th, 2025 for income received between January 1st, 2024 and December 31st, 2024.
Income tax returns should be filed online via the TAMIS online portal. For individual taxpayers, the tax year is the same as the calendar year, running from January 1st to December 31st.
If you file your income tax return earlier than April 1st, it may be deleted after the announcement of the Budgetary Proposals and Financial Statement by the Minister of Finance, which occurs each year usually during the month of March. In such cases, you will be required to re-submit your income tax return.
Any person who—
is deemed 'resident' for income tax purposes. [2]
'Domicile' is a general legal concept and Parliament has not defined what this means even though the law makes reference to it, so it is the subject of case law. A person's domicile status is independent of their nationality or citizenship.
In general, the 'domicile' of a person is understood to be referring to the country to which a person belongs. This is usually established at a person's birth, known as 'domicile of origin'.
In some cases, a person's domicile may change during their life. For example, if a person made Barbados their permanent home and renounced their native land, they might eventually be deemed 'domiciled' in Barbados even if they were originally 'domiciled' in another country.
A person who is domiciled in Barbados and moves overseas is likely to remain domiciled in Barbados even if they live overseas for many years. For example, if a Barbadian moves to the UK as an adult, the tax authorities in both countries are likely to deem that person to be domiciled in Barbados for at least 15 years.
You cannot change your domicile status merely by deciding to do so. It usually only changes if it is patently clear over a very long period of time that you abandoned your place of origin.
Any person who resides in Barbados on the Welcome Stamp visa is treated as non-resident for income tax purposes, even if they spend in the aggregate more than 182 days in Barbados during that tax year. [3] This is intended to prevent double taxation that might otherwise occur if such income were taxed in Barbados. It is not designed to extinguish income tax obligations outside Barbados. In case of any doubt, please seek legal advice from a qualified tax advisor.
[1] The union membership allowance has been increased from BBD $240 to BBD $360 retroactively to Income Year 2024, as announced by the Minister in the Ministry of Finance and Economic Affairs, the Hon. Ryan Straughn M.P., as part of the Budgetary Proposals and Financial Statement 2025.
[2] The term 'resident' and 'ordinarily resident' for income tax purposes is defined in Section 85(5) and (6) respectively of the Income Tax Act, Cap. 73.
[3] Persons on the Welcome Stamp visa are exempt from income tax in Barbados pursuant to Section 4 of the Remote Employment Act, 2020.