Lex Mundi Global Foreign Investment Restrictions Guide |
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Barbados |
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(Latin America/Caribbean)
Firm
Clarke Gittens Farmer
Contributors
Gillian Clarke |
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| Please provide a short summary of the Foreign Investment Restrictions adopted by your jurisdiction. | Generally, there are no restrictions on foreign investment in Barbados. Foreign nationals receive the same protections as local citizens and 100% foreign ownership is permitted. However, the Exchange Control Act Cap 71 regulates foreign investment activity. For example, the Act stipulates that prior permission must be sought from the Exchange Control Authority of the Central Bank of Barbados by a foreign investor desirous of acquiring real property or holding shares in a domestic company. |
| Is your regime focused on economic protectionism, national security, or a combination? | Not applicable |
| Who is considered a "foreign investor" and are only investments from particular countries covered? | There is no statutory definition of a foreign investor. Any non-national individual or entity formed in a jurisdiction other than Barbados, that makes a direct financial investment into the Barbados economy, would be considered to be a foreign investor. |
| What sectors are subject to Foreign Investment Restrictions screening? | There is no regime of foreign investment screening. |
| What are the relevant thresholds? | Not applicable |
| Is notification under Foreign Investment Restriction rules mandatory? | Not applicable as we have no statutory foreign investment restriction rules in Barbados. |
| Is the relevant authority's approval required prior to closing? | Certain types of activity, e.g. insurance, banking, securities, are regulated and in these cases, licenses, permits or registrations may be required. Additionally, in instances where certain types of commercial transactions need to be settled in a foreign currency, exchange control permission pursuant to the Exchange Control Act Cap. 71 is required for entities that do not hold a valid Foreign Currency Permit, and for non-resident individuals introducing funds into Barbados. |
| What was the impact of COVID-19 on your foreign investment regime? | There was a reduction in economic activity which resulted in delays to investment projects and a consequent decline in foreign investment. |
| How active has your agency been in reviewing, delaying, modifying or blocking foreign investments? | Not applicable |
| On what grounds can enforcers review and block a foreign investment? How active have they been in the past 6 months? | Not applicable |
| Do you expect any regulatory developments over the next 6 months? | No, we do not expect any regulatory developments over the next 6 months. |
Lex Mundi Global Foreign Investment Restrictions Guide
Barbados
(Latin America/Caribbean) Firm Clarke Gittens FarmerContributors Gillian Clarke
Updated 17 Oct 2023Generally, there are no restrictions on foreign investment in Barbados. Foreign nationals receive the same protections as local citizens and 100% foreign ownership is permitted. However, the Exchange Control Act Cap 71 regulates foreign investment activity. For example, the Act stipulates that prior permission must be sought from the Exchange Control Authority of the Central Bank of Barbados by a foreign investor desirous of acquiring real property or holding shares in a domestic company.
Additionally, some activities require local partnerships. These include tour operators and some food, retail and transport services.
Not applicable
There is no statutory definition of a foreign investor. Any non-national individual or entity formed in a jurisdiction other than Barbados, that makes a direct financial investment into the Barbados economy, would be considered to be a foreign investor.
There is no regime of foreign investment screening.
All sectors are subject to money laundering and tax evasion regulations. The Central Bank of Barbados has implemented AML "Know Your Customer" ("KYC") Guidelines and the Anti-Money Laundering/Combating the Financing of Terrorism ("AML/CTF") Guideline which both aim to prevent money laundering and the financing of terrorism. These are supported by the Money Laundering and Financing of Terrorism (Prevention & Control) Act 2011-13.
Not applicable
Not applicable as we have no statutory foreign investment restriction rules in Barbados.
Certain types of activity, e.g. insurance, banking, securities, are regulated and in these cases, licenses, permits or registrations may be required. Additionally, in instances where certain types of commercial transactions need to be settled in a foreign currency, exchange control permission pursuant to the Exchange Control Act Cap. 71 is required for entities that do not hold a valid Foreign Currency Permit, and for non-resident individuals introducing funds into Barbados.
There was a reduction in economic activity which resulted in delays to investment projects and a consequent decline in foreign investment.
Not applicable
Not applicable
No, we do not expect any regulatory developments over the next 6 months.