As we have reported recently a Double Tax Treaty (DTT) was signed between Cyprus and Barbados on 3 May 2017.
The treaty generally follows the OECD Model Tax Convention, with some modifications. In the case of Cyprus it applies on corporate and personal income tax, special contribution for defence and on the capital gains tax. For Barbados it covers the corporate and personal income tax.
The DTT provides for zero withholding tax rates on dividends, interest and royalties.
Gains from the sale of shares of immovable property rich companies are taxed in the country in which the seller is a tax resident.
The treaty will come in to effect on the 1st of January of the year following the year in which it is ratified by both parties.