TAX ON THE TRANSFER OF CAPITAL ASSETS

There are no capital gains taxes in Barbados. However, transfers of capital property are subject to both property transfer tax and stamp tax in the manner described below.

PROPERTY TRANSFER TAX

Property Transfer Tax (PTT) is levied at the rate of 2.5% on the value of the sale or transfer of company shares or real property as follows:

  • The first Bds$50,000 of share sales are exempt from property transfer tax.
    • The first Bds$150,000 of sale of real property including the transfer of land and houses.

PTT is payable on the transfer the property or shares by deed of gift. However, PTT is not assessable if the property is transferred when the estate of a deceased person is probated and transferred to the stated beneficiaries.

Example Sale of Shares

Total consideration $100,000

  • Payable on first $50,000 – NIL
  • Payable on balance $50,000 x 2.5% = $1,250

Example Sale of Real Property

Total consideration $200,000

  • Payable on first $150,000 – NIL
  • Payable on balance $50,000 x 2.5% = $1,250

Stamp Tax Stamp duty(tax) is also payable on the transfer of property and shares at a rate of at 1% of the value of the property transferred. It is also levied on the following transactions as follows:

  • Leases – 1%
  • Mortgages – BBBD $5 on the first Bds$500, and BBD $3 on each additional BBD $500 of the value of the transaction