DoubleTaxationTaxes on salary: Barbados preliminary data
How much income tax and social contributions are paid on a salary in Barbados, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | BBD 140,652 ≈ €60,000 |
|---|---|
| Income tax | BBD 23,804 ≈ €10,155 |
| Employee contributions | BBD 7,236 ≈ €3,087 |
| Take-home pay | BBD 109,612 ≈ €46,759 |
| Employer contributions and payroll taxes | BBD 8,362 ≈ €3,567 |
| Employer's labour cost | BBD 149,014 ≈ €63,567 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 BBD 70,326 | €60,000 BBD 140,652 | €120,000 BBD 281,304 |
|---|---|---|---|
| Sole proprietor | BBD 15,322 24.2 % | BBD 31,032 24.5 % | BBD 65,843 26.0 % |
| Company | BBD 10,958 17.3 % | BBD 21,915 17.3 % | BBD 43,831 17.3 % |
Special tax regimes
Barbados Welcome Stamp
Other · rate 0.0 %
Who: Non-nationals working remotely for employers or clients abroad. The stamp lasts 12 months and can be renewed.
Holder is treated as non-resident, and income from the remote job is not counted as Barbados-source income.
Legal basis: Remote Employment Act 2020-23, ss. 4 and 6 (amended by Act 2021-11)
Tax residence
The tax residence check does not cover Barbados yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 2.3442 BBD (Central Bank of Barbados — fixed peg BBD 2.00 = USD 1, 2026-01-02) ↗
Sources
- Barbados Revenue Authority — Policy Note OGC 001/2026, Reduction of Personal Income Tax Rates
- National Insurance and Social Security Service — Contribution Rates and earnings ceilings
- Parliament of Barbados — Barbados Corporation Tax Reform 2024 (Appendix I)
- Laws of Barbados — Income Tax Act Cap. 73 (L.R.O. 2007), s. 65(4A)
- Office of the Attorney General — Remote Employment Act 2020-23
- Central Bank of Barbados
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.