Barbados and Spain have ratified the Barbados – Spain Double Taxation Agreement bringing it into full effect from October 14, 2011.
The ratification of the Barbados Spain tax treaty builds on Barbados’ expansive tax treaty network to facilitate improved international business and trade between the two countries. A strong tax treaty network is a key component for implementing the Organization for Economic Co-operation and Development’s (OECD) international tax information exchange standard. Barbados’ strength in this area meant that it was one of the first countries to be “white listed” by the OECD and the first independent Caribbean offshore jurisdiction to be included on the original white list.
Tax treaties play an important role in preventing double taxation between partner countries while at the same time facilitating tax information exchange which helps to prevent tax evasion. These factors provide a critical role in improving trade relations and encouraging business development and investment between the treaty partners.
Barbados is in the final stages of ratifying treaties with both Ghana and Portugal. These strong moves towards continued treaty expansion improve the attractiveness of the Barbados offshore jurisdiction as larger treaty networks make the host country a more favourable choice as an offshore business hub. The island currently has Double Taxation Treaties in place with 32 countries including the world’s major economic powers including the United States of America, China, the United Kingdom, many European Union member states and Canada.