Barbados expands forex permit regime to boost global business

Barbados is moving to significantly enhance its appeal as an international business hub by broadening its foreign currency permit regime to include shipping companies and implementing key amendments aimed at increasing transparency and efficiency., the business development minister has told the Senate.

The development comes amid a steady rise in permit holders since the programme’s launch in 2019.

As the Upper House took up the Foreign Currency Permits Bill, Minister of Energy and Business Development, Senator Lisa Cummins, noted the regime’s progress over the last five years.

“When this regime started in 2019, Barbados had 586 new entities applying for a foreign currency permit,” she said.

“By 2020, we saw 264 new applications and 449 renewals, bringing the total to 713 active permit holders. By 2021, there were 1 892 new permit holders and 585 renewals, pushing the total up to 2 477.”

The trend continued in 2022 with 259 new permits and 2 093 renewals, bringing the total to 2 352.

In 2023, there were 288 new applications and 2 262 renewals, reaching 2 550 active permit holders. As of 2024, 314 new businesses have entered the regime, with 2 151 renewals, bringing the total to 2 465.

Senator Cummins noted expectations for further growth this year, with the latest legislative changes, particularly the inclusion of shipping companies, which were previously excluded from the framework.

“Shipping companies, in particular, were not included in the original legislation. That is now being corrected,” she said.

“The definition of ‘company’ will now include a shipping corporation within the meaning of the Shipping Corporations Act.”

The amendments also introduce more structured oversight, requiring the director of the Foreign Currency Permit regime to provide written reasons when permits are denied, cancelled, or not renewed.

Businesses operating under the permit will also now receive customs exemptions on necessary equipment and machinery, a provision aimed at removing bureaucratic delays.

“This ensures that businesses aren’t left waiting for waivers from the Ministry of Finance while their goods sit idle in customs,” Sen. Cummins said.

The minister further revealed that the government is also focusing on broader global business strategies, with the ministry preparing to negotiate bilateral investment treaties and double taxation agreements with Germany, Ghana, Hong Kong, and another “soon-to-be-announced” fourth country.

She noted that the government is not only expanding the regime but also making it attractive for international businesses looking to establish operations in Barbados.

“The expectation from my ministry is that we will see an increase in the foreign currency permit regime for the year 2025,” Senator Cummins said, adding that the amendments are part of a broader effort to strengthen Barbados’ standing as a global business hub. (SM)