Like saplings pushing their way up from the forest floor, emerging countries around the world are eagerly seeking a space in the global economy.  If they can claim their share of sunlight, their economies will grow quickly and their societies will benefit.  However, such growth requires a favourable environment that offers affordable access to international markets. 

To this end, business leaders in these emerging countries are scanning the globe in search of the right international business and financial services centre and, increasingly, their gaze is settling on Barbados.

Not surprisingly, given their geographical proximity, it is the emerging countries of Latin America that are examining the island most closely as a regional hub for both inbound and outbound investment.

Over the past 40 years, the island has built a well-deserved reputation as a highly attractive jurisdiction for carrying on international business.  Indeed, in structuring their international transactions and investments, multinational corporations have long made use of the tax advantages and other benefits created by the suite of corporate entities that Barbados offers.  These entities include: International Business Companies; International Societies with Restricted Liability; International Financial Services Companies; Exempt Insurance Companies; and Qualifying Insurance Companies.

Another attractive feature of the island jurisdiction is Barbados' network of double taxation treaties (DTAs) with other countries, which currently totals 36 treaties, with several more treaties pending.  This DTA network, which includes treaties with countries such as Cuba, Mexico, Panama and Venezuela, makes Barbados particularly attractive to those jurisdictions without similar treaties between themselves, as they can conduct business with each other while making use of the island's treaties.

As emerging countries look for the right international business jurisdiction, there are critical factors other than tax incentives on their check list, and Barbados possesses many of the requisite criteria.  Among the major benefits and assurances offered by the island are its

  • long-standing tradition of a stable political climate, including democratic elections and government
  • sound and respected legal framework based on British common law
  • commitment to international business and ease of doing business
  • highly developed infrastructure and information technology capability, and
  • educated work force.

For example, Barbados, as a jurisdiction, can play a significant role in structuring investment into the oil and gas sector in Mexico, thereby potentially reducing the cost of such investment by a significant margin.  Similarly, a Barbados entity may also be easily used to hold investments in Central America.

Making the island an attractive partner in this development has been a long term goal for the Government, which has been working hand-in-hand with the professional services firms on the island, in order to gain further ground in this market. For instance, new legislation has been introduced to specifically cater to the Latin American market - the Foundations and Private Trust Companies Acts; and the expansion of the Qualifying Professional Services listing for obtaining the foreign currency earnings credit, are recent examples.

There has been a growing presence on the island of Spanish-speaking nationals, businesses and service providers, as more and more entities headquartered in Latin America recognise Barbados as the international business and financial services centre of choice for their investment needs.

Before too long, "Buenos Dias" may be a familiar greeting in Barbados.

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