Barbados as the most easterly island in the Caribbean chain of Islands, stretching from Florida on the North American mainland to the Guianas on the northern mainland of South America. With 23 kilometres (14 miles) at its widest point and 34 kilometers (21 miles) long, it is a mere 432 square kilometres (166 square miles).

The island became independent from the United Kingdom in 1966. It has had hundreds of years of unmatched stability. The form of government remains directly based on the UK Parliamentary democracy. The Judicial system is based on that of England; members of the judiciary are independent of the functions of Government and the ultimate appellate court after the Barbados Court of Appeal is the Privy Council in England. The titular Head of State is the Queen, represented by the Governor-General.

Barbados has been described as flat and low lying, but in fact, it rises from west to east in a series of gentle terraces to its highest point of about 1100ft at Mount Hillaby in St. Andrew. Barbados enjoys a stable climate. The temperature rarely falls below 23° C or rises above 30° C. There is a definite "wet season" from July to November and a "dry season" with minimum rainfall recorded in February and March.

At the end of 2007 residential population stood at 280,946. English is the official language. The national currency is the Barbados dollar. The Barbados dollar is fixed to the US dollar US $1: BDS $2.

Why Barbados?
Barbados has an excellent infrastructure including telecommunications, banking, fund management and the supply and servicing of information technology. Additionally, daily services by international airlines, together with a wide range of hotel and apartment accommodation and meeting facilities, make it convenient and practical for the international business traveler to conduct active business.

A realistic attitude by successive government administrations has resulted in a good mix of work permit-authorized expatriates and a well-educated local workforce. A careful and prudent blend of confidentiality provisions in the international business legislation, combined with exchange of information clauses in tax treaties and a consistent Government policy of intolerance towards illegal activities, including money laundering, has evolved into an environment of international acceptance of the option to conduct business through the country of Barbados.

Opportunity:
Since the new Double Tax Agreement (DTA) between the Netherlands and Barbados became effective in January 2008, qualified individuals and legal entities can benefit from the new 0% route through the Netherlands and Barbados to the ultimate beneficiary.

As from January 2008 qualified individuals and legal entities can, under certain conditions, distribute dividends from a Netherlands Company to a Barbados Resident Company without taxation.

The 0% route:
Due to the extensive DTA network of the Netherlands, subsidiaries of a Netherlands Intermediary Holding Company can distribute dividends to the Netherlands Intermediary Holding Company at 0% or at a reduced withholding tax rate.

At the level of the Netherlands Intermediary Holding Company the income received from the subsidiary will, in principle, qualify(*) for the Participation Exemption, and subsequently be exempted from taxation.

Pursuant to the new DTA, the Netherlands Intermediary Holding Company can distribute the dividends to a Barbados Resident Company at 0% withholding tax(*).

At the level of the Barbados Resident Company the income received from the Netherlands Intermediary Holding Company will, in principle, qualify(*) for the Participation Exemption, and subsequently be exempted from taxation.

No withholding tax is payable on dividends, other than preference dividends, paid by a Barbados Resident Company to a non-resident shareholder when the dividends paid is derived from income earned from sources outside of Barbados.

(*) certain conditions apply