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Overview
 Barbados is the most easterly of the Caribbean Islands,
located east of the Windward Islands chain. Its location
makes Barbados very convenient for business in North America,
as it is approx. 4 1/2 hours from New York, 5 hrs from Toronto
by air. There are also daily connections to Europe, with
London being 8 hours away. The island is 431km/166 sq. miles
and has a population of 266,000. Local currency is the Barbadian
dollar, which is tied to the US dollar at a fixed rate of
2:1.
Barbados is a stable democratic nation. It gained independence from Britain on November 30 1966 and is a member of the British Commonwealth. It is also a founding member of the Caribbean Community and Common Market (CARICOM).
The constitution is based on the Westminster Parliamentary system, consisting of two houses - a Senate and a House of Assembly. The Governor General is Head of State, representing the British Monarchy and executive authority is vested in the Prime Minister and the Cabinet who are collectively responsible to Parliament. The legal system, based on the English Common Law, falls under the judicial authority of the Attorney General - final appeal for local courts being to the English Privy Council.
Barbados' market-based economy has diversified over the last four decades with emphasis moving from agriculture towards the provision of services. Tourism, financial services, agriculture and light manufacturing are the island's major industries. The principle exports of the island's agricultural industry are sugar and rum. Over the years, Barbados has shown steady economic growth under conditions of low inflation, stable currency, low external debt and solid social and economic infrastructure.
Tourism is the principal source of foreign exchange, economic activity and employment; the USA, UK, Continental Europe and Canada being the four main tourist markets. The major elements of the tourism product are Barbados' solid historical and cultural legacy, varied entertainment and natural physical attributes, including the weather.
All traditional Central Bank functions are performed by the Central Bank of Barbados, including the issue of currency, management of net foreign assets, the supervision of seven commercial banks and a number of financial institutions and the regulation of exchange controls. Foreign currencies can be purchased directly from the commercial banks, although there are limits on the amounts that can be purchased by residents and non-residents without applying for Central Bank permission. Non-Barbadians working in Barbados may operate external accounts credited with foreign currency from specific sources.
Barbados has developed into a major international business and financial services centre. Low tax rates (between 1 - 2.5%), double taxation agreements and exchange of information treaties have contributed to the success of this sector, with key players being banking and financial institutions and international businesses.
A number of double taxation and investment treaties are in place, providing tax incentives to foreign investors and making Barbados a particularly attractive Caribbean location to treaty partners including Canada, USA, UK, Finland, Sweden, Norway, Switzerland and the CARICOM member states.
The Government has established a separate Ministry to facilitate the development and expansion of the international business sector. There has been a steady increase in the number of International Banks, Captive Insurance Companies, International Business Companies and Foreign Sales Corporations registered in Barbados. The island is also becoming a leading centre for international information services in the Caribbean, including data processing, software development and the management of database and financial records. A number of government-approved incentives exist for investors in this sector. Special trading arrangements are also in place with other jurisdictions including Canada, the US market, the European market, Venezuela, Columbia and CARICOM member states.
The telecommunications infrastructure employs the latest digital technology and fibre optics systems including international direct dialing, facsimile transfer and satellite telecommunications to facilitate the efficient transmission of electronic data and to meet the demands of the island's thriving business community.
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