The Special Development Areas Act provides various concessions to approved developers for carrying on specific activities in defined geographical areas within Barbados
The areas which are currently defined as development areas:
- Carlisle Bay Redevelopment area in St. Michael;
- Speightstown in St. Peter;
- St. Lawrence Gap in Christ Church; and
- The Scotland District Conservation Area.
The activities that an approved developer may carry out are:
- Hotels including conference areas;
- Residential complexes;
- Commercial or industrial buildings including office complexes;
- Other tourism facilities;
- Water-based activities;
- Tourism projects highlighting heritage and natural environment;
- Arts and cultural investments; and
- Agricultural-based activities.
Approved developers and certain investors, other than commercial banks, may be granted the following tax concessions:
- Exemption from income tax on interest earned on a loan made to an approved developer to finance any development work during the development period;
- Income tax at a reduced rate of 30%;
- Initial and annual allowances on an industrial building at 40% and 6% respectively;
- Initial and annual allowances on a commercial building at 20% and 4% respectively;;
- Exemption from import duties and value added tax on inputs for the construction of new buildings or the refurbishment of existing buildings;
- Exemption from charges on the repatriation of interest or capital for a period of ten years;
- Exemption from land tax on the improved value of the land;
- Exemption from property transfer tax payable by vendors on the initial purchase of the property, whether by national or non-nationals.