Exempt insurance business or “captive” insurance business is the business of insuring risks located outside Barbados in respect of which premiums originate outside Brbados, and includes the business of an underwriter, broker, agent, dealer or salesman in respect of that business.
Advantages of conducting international insurance business in Barbados
Business convention expenses incurred by US corporations are deductible against taxes in the US.
Under the Canada/Barbados Double Taxation Agreement, dividends paid, out of income earned from captive insurance business in Barbados to a Canadian company, are considered “exempt surplus”, and are not subject to Canadian taxes, providing the risks are non-Canadian.
No restriction on insurance business being written
Speed of incorporation and licensing.
Minimum capitalization of US$125,000.
Regulatory filings that comply with international accounting standards.
Special Provision for incorporation of mutual insurance companies
Exemptions from tax on income and all withholding taxes.
Exemptions from taxes on profits or gains from investments
Exemptions from property taxes
Exemptions from controls on foreign ownership of property