Policies towards Foreign Direct Investment

The government of Antigua and Barbuda strongly encourages FDI, particularly in industries that create jobs, enhance economic activity, earn foreign currency, and have a positive impact on its citizens.  Diversification of the economy remains a priority.

Through the ABIA, the government facilitates and supports FDI in the country and maintains an open dialogue with current and potential investors.  While the government welcomes all FDI interests, it has identified agriculture, diversified tourism, healthcare services, outsourcing and business support services, information and communication technologies, and international financial services as priority investment areas.

Limits on Foreign Control and Right to Private Ownership and Establishment

There are no limits on foreign control of investment and ownership in Antigua and Barbuda. Foreign investors may hold up to 100 percent of an investment, and a local or foreign entrepreneur needs about 40 days from start to finish to transfer the title on a piece of property.  In June 1995, the government established a permanent residency program to encourage high-net-worth individuals to establish residency in Antigua and Barbuda for up to three years. As residents, their income is free of local taxation. This program is separate from the Citizenship by Investment (CBI) program.

The ABIA evaluates all FDI proposals and provides intelligence, business facilitation, and investment promotion to establish and expand profitable business enterprises.  The ABIA also advises the government on issues that are important to the private sector and potential investors to increase the international competitiveness of the local economy.

The government of Antigua and Barbuda treats foreign and local investors equally with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory.

Other Investment Policy Reviews

The OECS, of which Antigua and Barbuda is a member, has not conducted a trade policy review in the last three years.

Business Facilitation

Established in 2006, the ABIA facilitates foreign direct investment in the aforementioned priority sectors and advises the government on the formation and implementation of policies and programs to attract investment.  The ABIA provides business support services and market intelligence to all investors. It also offers an online tool that is useful for navigating the laws, rules, procedures, and registration requirements for foreign investors.  The guide is available online at http://www.theiguides.org/public-docs/guides/antiguabarbuda  and http://investantiguabarbuda.org/ .

All potential investors applying for government incentives must submit their proposals for review by the ABIA to ensure the project is consistent with national interests and provides economic benefits to the country.

In the World Bank’s 2019 Doing Business Report, Antigua and Barbuda ranks 131st out of 190 in the ease of starting a business.  The establishment of a new business takes nine procedures and 22 days to complete. The general practice is to retain a local attorney who prepares all the relevant incorporation documents.  A business must register with the Intellectual Property and Commerce Office (IPCO), the Inland Revenue Department, the Medical Benefits Scheme, the Social Security Scheme, and the Board of Education.  Given the multiple agencies currently involved in the process, the government is exploring creating a Single Window facility to expedite the process.

In an effort to improve the standard of living for the population, the government of Antigua and Barbuda has put in place various initiatives to assist vulnerable citizens.  The Citizens’ Welfare Division within the Ministry of Social Transformation is responsible for the delivery of social services to vulnerable citizens, including the elderly, children, women, and people with disabilities.  The government of Antigua and Barbuda continues to advance the work of the Antigua and Barbuda Business Innovation Center, a two-year project to assist small business and entrepreneurs. The Antigua and Barbuda Innovation Center includes a business incubator and provides education, training, and investment opportunities to new and existing businesses.  The Innovation Center focuses on businesses in the healthcare, tourism, agriculture and environment sectors, as well as projects submitted by women.

Through the Prime Minister’s Entrepreneurial Development Program (EDP), people with disabilities can apply for a special incentive award.  The EDP will also provide opportunities for female and young entrepreneurs in keeping with government’s mandate to support the growth of niche markets, innovation, the intellectual capital and ingenuity of its citizens, and the development of micro-, small- and medium-sized enterprises.

Outward Investment

Although the government of Antigua and Barbuda prioritizes investment retention as a key component of its overall economic strategy, there are no formal mechanisms in place to achieve this.  Some companies have noted that the economy of Antigua and Barbuda. will continue to require significant foreign investment.

There is no restriction on domestic investors seeking to do business abroad.  Local companies in Antigua and Barbuda are actively encouraged to take advantage of export opportunities specifically related to the country’s membership in the OECS Economic Union and the Caribbean Community Single Market and Economy (CSME), which enhance the competitiveness of the local and regional private sectors across traditional and emerging high-potential markets.

The corporate tax rate is 25 percent. The government of Antigua and Barbuda has said it intends to lower the corporate tax rate to 20 percent.  The government hopes to utilize this more competitive tax rate as a tool for attracting company headquarters and back-office operations from around the world.

Antigua and Barbuda has signed bilateral investment treaties with Germany and the United Kingdom.  It does not have a bilateral investment treaty or bilateral taxation treaty with the United States.  Antigua and Barbuda has bilateral taxation agreements with Denmark, Norway, Sweden, Switzerland, and the United Kingdom.  There are currently two double taxation agreements in force with the United Kingdom and the United Arab Emirates. Antigua and Barbuda currently has 22 Tax Information Exchange Agreements in force.  Antigua and Barbuda is also party to the following economic communities and organizations:

Caribbean Community

The Treaty of Chaguaramas established the Caribbean Community (CARICOM) in 1973.  Its purpose is to promote economic integration among its 15 member states. Investors operating in Antigua and Barbuda have preferential access to the entire CARICOM market.  The Revised Treaty of Chaguaramas establishes the CSME, which permits the free movement of goods, capital, and labor within CARICOM States. CARICOM has bilateral agreements with Cuba, Colombia, Costa Rica, the Dominican Republic, and Venezuela.  In 2013, CARICOM entered into a Trade and Investment Framework Agreement with the United States.

Organization of Eastern Caribbean States

The Revised Treaty of Basseterre establishes the OECS.  The OECS consists of seven full members (Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines), and three associate members (Anguilla, Martinique, and the British Virgin Islands).  Guadeloupe began the process of joining the OECS by signing an accession agreement in March 2019. The OECS promotes harmonization among member states in foreign policy, defense and security, and economic affairs. The six independent countries ratified the Revised Treaty of Basseterre establishing the OECS Economic Union, which entered into force in 2011.  The Economic Union established a single financial and economic space within which all factors of production, including goods, services, and people, move without hindrance.

Economic Partnership Agreement

The Caribbean Forum of African, Caribbean and Pacific States (CARIFORUM) and the European Community signed an Economic Partnership Agreement (EPA) in 2008.  The overarching objectives of the EPA are to alleviate poverty, promote regional integration and economic cooperation, and foster the gradual integration of the CARIFORUM states into the world economy by improving trade capacity and creating an investment-conducive environment.  The Agreement promotes trade-related developments in areas such as competition, intellectual property, public procurement, the environment, and the protection of personal data.

Caribbean Basin Initiative

The trade programs known collectively as the Caribbean Basin Initiative (CBI) facilitate the economic development and export diversification of the Caribbean Basin economies.

Initially launched in 1983 through the Caribbean Basin Economic Recovery Act (CBERA), and substantially expanded in 2000 through the U.S.-Caribbean Basin Trade Partnership Act (CBTPA), the Trade Act of 2002 further expanded the CBI. The CBI promotes economic development through private sector initiatives in Central America and the Caribbean islands by expanding foreign and domestic investment in non-traditional sectors, diversifying CBI country economies and expanding their exports.  The CBI provides beneficiary countries with duty-free access to the U.S. market for most goods. It permits duty free entry of products manufactured or assembled in Antigua and Barbuda into the United States.

Caribbean/Canada Trade Agreement

Caribbean/Canada Trade Agreement (CARIBCAN) is an economic and trade development assistance program for Commonwealth Caribbean countries in which Canada provides duty free access to its national market for the majority of products originating in Commonwealth Caribbean countries.

Transparency of the Regulatory System

Antigua and Barbuda seeks to foster competition and establish clear rules for foreign and domestic investors in the areas of tax, labor, environment, health, and safety.  The government of Antigua and Barbuda publishes laws, regulations, administrative practices, and procedures of general application and judicial decisions that affect or pertain to investments or investors in Antigua and Barbuda.  Where the national government establishes policies that affect or pertain to investments or investors that are not expressed in laws and regulations or by other means, the national government will make them publicly available.

Rulemaking and regulatory authority lies with the bicameral parliament of the government of Antigua and Barbuda.  The House of Representatives has 19 members, of which 17 memberselected for a five-year term in single-seat constituencies, one ex-officio member, and one Speaker.  The Senate has 17 appointed members.

Respective line ministries develop the relevant national laws and regulations, which are then drafted by the Ministry of Legal Affairs.  Laws relating to the ABIA and the CBI program are the main laws relevant to FDI. The laws of Antigua and Barbuda are available online at http://laws.gov.ag/new/index.php .  This website contains the full text of laws already in force, as well as those parliament is currently considering.

Although, some draft bills are not subject to public consultation, input from various stakeholder groups may be considered.  The process is detailed at:http://www.laws.gov.ag/makinglaws.htm  . The government encourages stakeholder organizations to support and contribute to the legal development process by participating in technical committees and commenting on drafts.

Accounting, legal, and regulatory procedures are generally transparent and consistent with international norms.  The International Financial Accounting Standards, which stem from the General Accepted Accounting Principles, govern the accounting profession.

The constitution provides for the independent Office of the Ombudsman to guard against abuses of power by government officials.  The Ombudsman is responsible for investigating complaints about acts or omissions by government officials that violate the rights of members of the public.  

The ABIA has the main responsibility for investment supervision, and the Ministry of Finance and Corporate Governance monitors investments to collect information for national statistics and reporting purposes.

Antigua and Barbuda’s membership in regional organizations, particularly the OECS and its Economic Union, commits the state to implement all appropriate measures to fulfill its various treaty obligations.  Therefore, the eight member states and territories of the ECCU tend to enact laws uniformly, although there may be some minor differences in implementation. The enforcement mechanisms of these regulations include penalties and other sanctions.  The ABIA can revoke an issued Investment Certificate if the holder fails to comply with certain stipulations detailed in the Investment Authority Act and its regulations.

The government of Antigua and Barbuda has stated its commitment to achieving better development outcomes through improved transparency and accountability in the management of public finances.  The government has developed a Medium-Term Debt Management Strategy (MTDS) (covering the period 2016-2020) aimed at minimizing debt servicing, budgetary costs, and risk exposure to government while making every effort to maintain debt at a sustainable level.

The government enacted the Miscellaneous Amendments Act 2018 in December 2018, which ensured a number of important international standards were reflected in national legislation.  The government has also reduced the proportion of revenue required to pay the interest on government debt. The most recent Caribbean Financial Action Task Force (CFATF) Mutual Evaluation assessment found Antigua and Barbuda to be largely compliant.

The ECCB is the supervisory authority over financial institutions registered under the Banking Act of 2015.

International Regulatory Considerations

As a member of the OECS and the ECCU, Antigua and Barbuda subscribes to principles and policies outlined in the Revised Treaty of Basseterre.  The relationship between national and regional systems is such that each participating member state is expected to coordinate and adopt, where possible, common national policies aimed at the progressive harmonization of relevant policies and systems across the region.  Thus, Antigua and Barbuda is obligated to implement regionally developed regulations, such as legislation passed under the authority of the OECS, unless it seeks specific concessions to do otherwise.

The Antigua and Barbuda Bureau of Standards is a statutory body that prepares and promulgates standards in relation to goods, services, processes, and practices.  Antigua and Barbuda is a signatory to the World Trade Organization (WTO) Agreement on the Technical Barriers to Trade.

Antigua and Barbuda ratified the WTO Trade Facilitation Agreement (TFA) in November 2017. Ratification of the Agreement is an important signal to investors of the country’s commitment to improving its business environment for trade.  The TFA is intended to improve the speed and efficiency of border procedures, facilitate trade costs reduction, and enhance participation in the global value chain. Antigua and Barbuda has already implemented a number of TFA requirements.  A full list is available at:https://www.tfadatabase.org/members/antigua-and-barbuda/measure-breakdown .

The Advanced Cargo Information System (ACIS) is a CARICOM project that seeks to improve the capability to track cargo efficiently.  Antigua and Barbuda is one of three regional pilot countries who have already enacted the enabling legislation. Antigua and Barbuda has fully implemented the Automated System for Customs Data (ASYCUDA).  Importers are no longer required to produce a Certificate of Good Standing (Tax Compliance Certificate) for the importation of goods. This has reduced the time needed to clear goods. Legislative changes to the Customs Control and Management Act enabled the electronic processing of manifests.

Legal System and Judicial Independence

Antigua and Barbuda bases its legal system on the British Common law system.  The Attorney General, the Chief Justice of the Eastern Caribbean Supreme Court, junior judges, and magistrates administer justice.  The Eastern Caribbean Supreme Court Act establishes the Supreme Court of Judicature, which consists of the High Court and the Eastern Caribbean Court of Appeal.  The High Court hears criminal and civil (commercial) matters and makes determinations on the interpretation of the Constitution. Parties may appeal first to the Eastern Caribbean Supreme Court, an itinerant court that hears appeals from all OECS members.  The final appellate authority is the Judicial Committee of the Privy Council of the United Kingdom.

The Caribbean Court of Justice (CCJ) has original jurisdiction to interpret and apply the Revised Treaty of Chaguaramas.  Currently, Antigua and Barbuda is subject only to the original jurisdiction of the CCJ.

Antigua and Barbuda is a party to the WTO.  The WTO Dispute Settlement Panel and Appellate Body resolve disputes over WTO agreements, while courts of appropriate jurisdiction in both countries resolve private disputes.  Antigua and Barbuda brought a case against the United States before the WTO concerning the cross-border supply of gambling and betting services. The WTO ruled in favor of Antigua and Barbuda, but agreement on settlement terms remains outstanding.

Laws and Regulations on Foreign Direct Investment

The ABIA provides guidance on the relevant laws, rules, procedures, and reporting requirements for investors.  These are available at http://www.theiguides.org/public-docs/guides/antiguabarbuda  and http://investantiguabarbuda.org/ .

The government discontinued concessions provided under the Tourism and Business Special Incentives Act (2013) in 2018.  The government is currently reviewing its concessions regime.

Citizenship by Investment

Under the CBI program, foreign individuals can obtain citizenship in accordance with the Citizenship by Investment Act of 2013, which grants citizenship (without voting rights) to qualified investors.  Applicants are required to undergo a due diligence process before citizenship can be granted. The minimum contribution for investors under the CBI is a contribution of USD 100,000 to the National Development Fund for a family of up to four people and USD 125,000 for a family of five, with additional contributions of USD 15,000 per person for up to four additional family members.  Additionally, foreign individuals may contribute USD 150,000 to the University of the West Indies (UWI) Fund for a family of up to four people. This contribution entitles one member of the family to a one year tuition-only scholarship at UWI. Individual applicants can also qualify for the program by buying real estate valued at USD 400,000 or more or making a business investment of USD 1.5 million.  Alternatively, at least two applicants can propose to make a joint investment in an approved business with a total investment of at least USD 5 million.  Each investor must contribute at least USD 400,000 to the joint investment. Until October 31, 2019, two applications from related parties can make a joint investment, with each applicant investing a minimum of USD 200,000 in order to qualify.  CBI investors must own property for a minimum of five years before selling it.  All applicants must also pay relevant government and due diligence fees, as well as providing a full medical certificate, a police certificate, and evidence of the source of funds.  Further information is available at: http://www.cip.gov.ag/ .

Competition and Anti-Trust Laws

Chapter 8 of the Revised Treaty of Chaguaramas outlines the competition policy applicable to CARICOM states.  Member states are required to establish and maintain a national competition authority for implementing the rules of competition.  CARICOM established a Caribbean Competition Commission (CCC) to rule on complaints of anti-competitive cross-border business conduct.  CARICOM competition policy addresses anti-competitive business conduct such as collusion between enterprises, decisions by associations of enterprises, and concerted practices by enterprises that have as their object or effect the prevention, restriction, or distortion of competition within the Community, and actions by which an enterprise abuses its dominant position within the Community.  Antigua and Barbuda does not have any legislation regulating competition. The OECS agreed to establish a regional competition body to handle competition matters within its single market. The draft OECS bill is with the Ministry of Legal Affairs for review.

In March 2019, the CCC preliminarily ruled that parts of a proposed sale of the Bank of Nova Scotia’s banking assets in nine countries in the Caribbean, including OECS member countries,  to Republic Financial Holdings and life insurance operations in two other Caribbean countries to Sagicor Financial Corporation could have an anti-competitive impact in at least three member states.  The CCC stated it intends to liaise with national competition authorities and sector regulators for preliminary examinations of the proposed sales at the national level. The CCC has promised to monitor the situation and provide further updates.

Expropriation and Compensation

According to the Investment Authority Act of 2006, investments in Antigua and Barbuda will not be nationalized, expropriated, or subject to indirect measures having an equivalent effect, except as necessary for the public good, in accordance with due process of law, on a non-discriminatory basis, and accompanied by prompt, adequate, and effective compensation.  Compensation in such cases is the fair market value of the expropriated investment immediately before the expropriation or the impending expropriation became public knowledge, whichever is earlier. Compensation shall include interest from the date of dispossession of the expropriated property until the date of payment. Compensation is required to be paid without delay in convertible currency, and be effectively realizable and freely transferable.

There is an unresolved dispute regarding the expropriation of an American-owned property.  Although the government of Antigua and Barbuda paid the former property owner a total of USD 39.8 million in compensation, it still owes interest payments of USD 20 million.  In March 2019, a judge dismissed a case bought by the former property owners against the government for payment of the outstanding balance. However, the owners intend to appeal.  For this reason, the industry recommends continued caution when investing in real estate in Antigua and Barbuda.

Dispute Settlement

ICSID Convention and New York Convention

Antigua and Barbuda is not a party to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States.  However, it is a member of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, also known as the New York Arbitration Convention.  Private parties may use international or national arbitration if specified in contracts. The Arbitration Act Cap. 33 (1975) is the main legislation which governs arbitration in Antigua and Barbuda.  It adheres to the New York Arbitration Convention.

Investor-State Dispute Settlement

Investors may use national or international arbitration to resolve contractual disputes with the state.  Antigua and Barbuda also has Bilateral Investment Treaties with Germany and the United Kingdom that recognize binding international arbitration of investment disputes.  Antigua and Barbuda does not have a Bilateral Investment Treaty or a Free Trade Agreement with an investment chapter with the United States. U.S. Embassy Bridgetown is not aware of any current investment disputes in Antigua and Barbuda.

Antigua and Barbuda ranks 34 out of 190 countries in enforcing contracts in the 2019 World Bank Doing Business Report.  According to the report, dispute resolution in Antigua and Barbuda generally takes an average of 476 days. The slow court system and bureaucracy are widely seen as the main hindrances to timely resolutions to commercial disputes.  Through the Arbitration Act, the local courts recognize and enforce foreign arbitral awards issued against the government.

International Commercial Arbitration and Foreign Courts

As mandated by the Arbitration Act, alternative dispute mechanisms are available as a means for settling disputes between two private parties.  Parties may also use voluntary mediation or conciliation. The Arbitration Act mandates the legal recognition and enforcement of judgments of foreign courts by local courts.  Thus, the High Court of Antigua and Barbuda recognizes and enforces foreign arbitral awards. The Eastern Caribbean Supreme Court’s Court of Appeal provides meditation on commercial contracts.

Bankruptcy Regulations

Under the Bankruptcy Act (1975), Antigua and Barbuda has a bankruptcy framework that grants certain rights to debtors and creditors.  The World Bank’s 2019 Doing Business Report addresses the strength of the framework and its limitations in resolving insolvency in Antigua and Barbuda. Antigua and Barbuda is ranked 132nd of 190 countries in this area.

Investment Incentives

In 2018, the government of Antigua and Barbuda made a policy decision to stop granting waivers for property taxes.  Foreign investors can still access other concessions, including the manufacturers’ incentive that grants exemption from the payment of import duties, revenue recovery charge, and sales tax on raw materials, packaging materials, tools, equipment, and machinery.

The government of Antigua and Barbuda has been proactively pursuing public-private partnerships (PPPs) through the National Asset Management Company (NAMCO).  NAMCO is a wholly owned government entity that holds the government’s stake in joint ventures and manages the investment proceeds that accrue.

Foreign Trade Zones/Free Ports/Trade Facilitation

The government established the Antigua and Barbuda Free Trade and Processing Zone (Free Zone) in 1994.  A commission, acting as a private enterprise, administers the Free Zone.

The Free Zone is part of a government initiative to diversify the economy.  The commission is mandated to attract investment in priority areas.

Performance and Data Localization Requirements

The government does not mandate employment of its citizens by foreign investors.  However, the provisions of the Labor Code outline requirements for acquiring a work permit and prohibit anyone who is not a citizen of Antigua and Barbuda (or the OECS) to work without a work permit.  In practice, work permits may be granted to senior managers if no qualified Antiguan nationals are available for the post. There are no excessively onerous visa or residency, requirements.

As a member of the WTO, Antigua and Barbuda is party to the Agreement to the Trade Related Investment Measures.  While there are no formal performance requirements, the government encourages investments that will create jobs and increase exports and foreign exchange earnings. There are no requirements for participation either by nationals or by the government in foreign investment projects.  There is no requirement that enterprises must purchase a fixed percentage of goods or technology from local sources, but the government encourages local sourcing. Foreign investors receive the same treatment as citizens. There are no requirements for foreign information technology providers to turn over source code and/or provide access to surveillance (for example, backdoors into hardware and software or keys for encryption).

Real Property

The government owns 55 percent of the country’s land, with the remaining 45 percent is privately owned.  The Lands Division in the Ministry of Agriculture, Lands, Fisheries and Barbuda Affairs is the custodian of Crown lands on behalf of the government.

By custom, the residents of Barbuda owned communally the land on the island.  In 2018, the government amended the Barbuda Land Act to allow Barbudans to have private ownership of land on Barbuda.  The government then announced plans to repeal the Barbuda Land Act, replacing it with a new Crown Land Regulation Act that would allow private ownership of land in Barbuda by non-Barbudans.  Many Barbudans are opposed to this legislation, which would allow the government to sell land on Barbuda for the commercial development of tourism facilities. Barbudan representatives have filed a legal challenge to the constitutionality of the new legislation in the Eastern Caribbean Supreme Court.

Both citizens and non-citizens can lease or buy land on the island of Antigua from the government or the private sector.  Land sold to non-citizens is subject to the Non-Citizen Land Holding Regulation Act that requires the buyer to obtain a license to purchase land.  Buyers are advised to consult with a local attorney. All land titles and purchases must be registered at the Land Registry.

The Town and Country Planning office of the Development Control Authority designates land use areas, including for commercial, agricultural, industrial, or tourism use.  The government’s Free Trade and Processing Zone manages lands and facilities which are geared towards attracting foreign direct investment in export sectors.

Because Antigua and Barbuda is a member of the ECCU, lending institutions in Antigua and Barbuda generally follow the guidelines published by the ECCB.  However, the lack of capital market depth in the sub-region makes the use of securitization difficult. The country could potentially benefit from initiatives to expand the range of financial products offered by the Eastern Caribbean Securities Exchange (ECSE) and the Eastern Caribbean Home Mortgage Bank.

In the World Bank’s 2019 Doing Business Report, Antigua and Barbuda is ranked 120 out of 190 countries for ease of registering property.  The government of Antigua and Barbuda has instituted significant reforms in this area. It now takes about 32 days (compared to 108 days before the reforms) to complete seven necessary procedures, and the cost is about 10.8 percent of the property value.  

Intellectual Property Rights

Antigua and Barbuda has an extensive legislative framework supporting the protection of intellectual property rights.  However, enforcement efforts are inconsistent. Antigua and Barbuda is a member of the United Nations World Intellectual Property Organization (WIPO).  It is a signatory to the Paris Convention for the Protection of Industrial Property, the Patent Cooperation Treaty, the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks, and the Berne Convention for the Protection of Literary and Artistic Works.  

Article 66 of the Revised Treaty of Chaguaramas (2001) establishing the CSME commits all 15 members to implement stronger intellectual property protection and enforcement. The EPA between the CARIFORUM States and the European Community contains the most detailed obligations regarding intellectual property in any trade agreement to which Antigua and Barbuda is a party.  The EPA recognizes the protection and enforcement of intellectual property. Article 139 of the EPA requires parties to “ensure an adequate and effective implementation of the international treaties dealing with intellectual property to which they are parties, and of the Agreement on Trade Related Aspects of Intellectual Property (TRIPS).”

The Comptroller of Customs spearheads the enforcement and prevention efforts against counterfeit goods, which include detention, seizure, and forfeiture.

Antigua and Barbuda is not listed on the United States Trade Representative ’s  2019 Notorious Markets List, or in the Special 301 Report. For additional information about treaty obligations and points of contact at local intellectual property offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en 

Capital Markets and Portfolio Investment

As a member of the ECCU, Antigua and Barbuda is also a member of the ECSE and the Regional Government Securities Market.  The ECSE is a regional securities market established by the ECCB and licensed under the Securities Act of 2001, a uniform regional body of legislation governing securities market activities.  As of March 31, 2018, there were 135 securities listed on the ECSE, comprising 112 sovereign debt instruments, 14 equities, and nine corporate bonds. Market capitalization stood at USD 3.07 billion.  Antigua and Barbuda is open to portfolio investment.

Antigua and Barbuda accepted the obligations of Article VIII of the International Monetary Fund Agreement.  Sections 2, 3 and 4, and maintains an exchange system free of restrictions on making international payments and transfers.  The government normally does not grant foreign tax except in cases where taxes are paid in a Commonwealth country that grants similar relief for Antigua and Barbuda taxes, or where an applicable tax treaty provides a credit.  The private sector has access to credit on the local market through loans, purchases of non-equity securities, and trade credits, as well as other accounts receivable that establish a claim for repayment.

Money and Banking System

Antigua and Barbuda is a signatory to the 1983 agreement establishing the ECCB.  The ECCB controls Antigua and Barbuda’s currency and regulates its domestic banks.

The Banking Act 2015 is a harmonized piece of legislation across the ECCU member states.  The ECCB and the Ministers of Finance of member states jointly carry out banking supervision under the Act.  The Ministers of Finance usually act in consultation with the ECCB with respect to those areas of responsibility within the Minister of Finance’s portfolio.

Both domestic and foreign banks can establish operations in Antigua and Barbuda.  The Banking Act requires all commercial banks and other institutions to be licensed. The ECCB regulates financial institutions.  As part of supervision, licensed financial institutions are required to submit monthly, quarterly, and annual performance reports to the ECCB.  In its latest annual report, the ECCB listed the commercial banking sector in Antigua and Barbuda as stable. Assets of commercial banks totaled USD 2.5 billion at the end of December 2018 and remained relatively consistent during the previous year.  The reserve requirement for commercial banks was 6 percent of deposit liabilities.

Antigua and Barbuda remains well served by bank and non-bank financial institutions.  There are minimal alternative financial services offered. Some people still participate in informal community group lending, but the practice is declining.

The Caribbean region has witnessed a withdrawal of correspondent banking services by U.S. and European banks.  CARICOM remains committed to engaging with key stakeholders on the issue and appointed a Committee of Ministers of Finance on Correspondent Banking to continue to monitor the issue.

The government of Antigua and Barbuda has announced plans to introduce legislation to operate and regulate blockchain technology as an integral part of developing Antigua and Barbuda as a regional center for blockchain and cryptocurrency. The government intends to collaborate with global oversight bodies in the implementation of international best practices that will make the jurisdiction attractive to international business.

In March 2019, the ECCB launched an 18-month financial technology pilot program establishing a Digital Eastern Caribbean dollar (DXCD) with its partner, Barbados-based Bitt Inc.  The ECCB will work closely with Bitt to develop and test technology focusing on data management, compliance, and transaction monitoring systems for know your customer, anti-money laundering, and combating the financing of terrorism regulations.  This goal of the program is to improve the risk profile of the ECCU and mitigate against the trend of de-risking by the region’s correspondent banking partners. The pilot will also focus on developing a secure, resilient digital payment and settlement platform with embedded regional and global compliance.  The DXCD will operate alongside physical Eastern Caribbean currency. The ECCB will issue the DXCD to licensed bank and non-bank financial institutions on a private blockchain platform.

Foreign Exchange and Remittances

Foreign Exchange

Antigua and Barbuda is a member of the ECCU and the ECCB.  The currency of exchange is the Eastern Caribbean dollar (XCD).  As a member of the OECS, Antigua and Barbuda has a foreign exchange system that is fully liberalized.  The Eastern Caribbean dollar has been pegged to the United States dollar at a rate of XCD 2.70 to USD USD 1.00 since 1976.  As a result, the Eastern Caribbean dollar does not fluctuate, creating a stable currency environment for trade and investment in Antigua and Barbuda.

Remittance Policies

Companies registered in Antigua and Barbuda have the right to repatriate all capital, royalties, dividends, and profits free of all taxes or any other charges on foreign exchange transactions.  The government levies withholding taxes on non-resident corporations and individuals receiving income in the form of dividends, preferred share dividends, interest and rentals, management fees, and royalties, as well as on interest on bank deposits to non-resident corporations.  A person must be present on the island for no less than four years without interruption to be considered a resident. Antigua and Barbuda is a member of the CFATF.

In February 2017, the government of Antigua and Barbuda signed FATCA in observance of the United States’ Foreign Account Tax Compliance Act, making it mandatory for banks in Antigua and Barbuda to report the banking information of U.S. citizens.

Sovereign Wealth Funds

Neither the government of Antigua and Barbuda nor the ECCB, which Antigua and Barbuda is a member, maintains a sovereign wealth fund.

Responsible business conduct among both producers and consumers is positively regarded in Antigua and Barbuda.  The private sector is involved in projects that benefit society, including in support of environmental, social, and cultural causes.  Individuals benefit from business-sponsored initiatives when local and foreign-owned enterprises pursue volunteer opportunities and make monetary or in-kind donations to local causes.

The NGO community, while comparatively small, is involved in fundraising and volunteerism in gender, health, environmental, and community projects.  The government at times partners with NGOs in their activities and encourages philanthropy.

The law provides criminal penalties for corruption by officials, and the government generally implements these laws if corruption is proven.  Allegations of corruption against government officials in Antigua and Barbuda have been reported to be common. Many businesses have noted that both major political parties frequently accused the other of corruption, but investigations yielded few, if any results.  Antigua and Barbuda is party to the Inter-American Convention against Corruption and the United Nations Anti-Corruption Convention.

The Integrity in Public Life Act requires all public officials to disclose all income, assets (including those of spouses and children), and personal gifts received while in public office.  An Integrity Commission, established by the Act and appointed by the Governor General, receives and investigates complaints regarding noncompliance with or violations of this law or of the Prevention of Corruption Act.  As the only agency charged with combating corruption, the Commission was independent but understaffed and under-resourced. Critics stated the legislation was inadequately enforced and the act should be strengthened.

The Freedom of Information Act gives citizens the statutory right to access official documents from public authorities and agencies, and it created a commissioner to oversee the process.  In practice, citizens found it difficult to obtain documents, possibly due to government funding constraints rather than obstruction. The Act created a special unit mandated to monitor and verify disclosures.  By law, the disclosures are not public. There are criminal and administrative sanctions for noncompliance.

In 2015, twelve Commonwealth Caribbean countries, including Antigua and Barbuda, established a new regional body to enhance transparency and to help fight corruption.  The formation of the Association of Integrity Commissions and Anti-Corruption Bodies in the Commonwealth Caribbean was been presented as a potentially important step forward in regional efforts to support integrity and address corruption.

Resources to Report Corruption

Radford Hill
Chairman, Integrity Commission
R.I.O.A. (Francis Trading) Building,
Ground Floor, High Street,
St. John’s, Antigua
(268) 462-5939
clients@lawhillandhill.com

The Office of National Drug and Money Laundering Control Policy is the independent law enforcement agency with specific authority to investigate reports of suspicious activity concerning specified offenses and the proceeds of crime.

http://ondcp.gov.ag/laws/regulation/ 
http://ondcp.gov.ag/about/overview-of-ondcp/ 

Lt Col Edward Croft
Director, Office of National Drug and Money Laundering Control Policy
Camp Blizzard, St Georges, Antigua
(268) 562-3255/6
ondcp@candw.ag

Antigua and Barbuda does not have a recent history of politically-motivated violence or civil disturbance. Elections are peaceful and regarded as being free and fair. The next general elections are constitutionally due by March 2023.

Table 2: Key Macroeconomic Data, U.S. FDI in Antigua and Barbuda

* Source for Host Country Data: Eastern Caribbean Central Bank https://www.eccb-centralbank.org/statistics/dashboard-datas/   . All ECCB GDP figures for 2018 are estimates.

Table 3: Sources and Destination of FDI

Data not available. Antigua and Barbuda does not appear in the IMF’s Coordinated Direct Investment Survey (CDIS).

Table 4: Sources of Portfolio Investment

Data not available. Antigua and Barbuda does not appear the IMF Coordinated Portfolio Investment Survey (CPIS).

The government encourages FDI, particularly in the tourism and financial services sector.  The country provides incentives for second home ownership and currently has over 400 banks and trust companies operating in the jurisdiction.  The National Investment Policy explicitly encourages foreign investment in certain sectors of the economy. These sectors are listed on the BIA website at www.bahamas.gov.bs/bia   and are as follows: touristic resorts; upscale condominium, timeshare, and second home development; information/data processing; hi-tech services; ship registration; repair; light manufacturing for export; agro-industries; food processing; agriculture; financial services; offshore medical centers; and pharmaceutical manufacture.

The Bahamas has an investment promotion strategy that includes multiple government agencies working to attract foreign direct investment.  The BIA functions as the investment facilitation agency and acts as a ‘one stop shop’ to assist investors in navigating a potentially cumbersome approvals process.  The Embassy is not aware of any formal retention strategies, but each administration has consistently supported new investment and has generally honored agreements made by previous administrations.  The current government has introduced plans for legislative support for Small and Medium Enterprises (SME), defined as companies with fewer than 10 employees, representing 85 percent of registered businesses.

The Bahamas still reserves certain sectors of the economy for Bahamian investors.  The reserved areas are: wholesale and retail operations; commission agencies engaged in import/export; real estate and domestic property management; domestic newspapers and magazine publications; domestic advertising and public relations firms; nightclubs and restaurants except specialty, gourmet, and ethnic restaurants and those operating in a hotel; security services; domestic distribution of building supplies; construction companies except for special structures; personal cosmetic/beauty establishments; shallow water scale fish, crustacean, mollusk, and sponge-fishing; auto and appliance service operations; and public transportation.  In 2015, the domestic gaming industry was included as an area reserved for domestic investment and supported by a moratorium on new licenses.

With the exception of these sectors, the Bahamian government does not give preferential treatment to investors based on nationality, and investors have equal access to incentives, which include land grants, tax concessions, and direct marketing and budgetary support.  The government provides guidelines for investment through its National Investment Policy (NIP), which The Bahamas Investment Authority (BIA) administers in the Office of the Prime Minister. Large foreign investment projects, particularly those that do not fit within the NIP, require approval by the National Economic Council (NEC) of The Bahamas.  This process generally requires environmental and economic impact assessments for review by multiple government agencies prior to NEC consideration.

Bureaucratic impediments are not limited to the NEC approvals process, and the country continues to lag behind on international metrics related to starting a business.   According to the 2018 World Bank Doing Business rankings, The Bahamas scores 118 overall, 169 in registering property, 91 in getting construction permits, and 144 in access to credit.  The Embassy is aware of cases where the Bahamian government failed to respond to investment applications, and several cases where there have been significant delays in the approvals process.  Despite the challenges that investors have reported, investment continues to grow in tourism, finance, and quick-serve restaurant franchises.

Limits on Foreign Control and Right to Private Ownership and Establishment

Foreign investors have the right to establish private enterprises and, after approval, companies operate unencumbered.  Key considerations for the Bahamian government include economic impact/job creation and environmental protection. With the assistance of a local attorney, investors can create the following types of businesses: sole proprietorship, limited or general partnership, joint stock company, or subsidiary of a foreign company.  The most popular all-purpose vehicles for foreign investors are the International Business Company (IBC) and the Limited Duration Company (LDC). Both benefit from income, capital gains, gift, estate, inheritance, and succession tax exemptions. Investors are required to establish a local company and be registered to operate in The Bahamas.

Regarding the reserved sectors of the economy referenced above, the government has made exceptions to this policy on a case-by-case basis but generally, there is no guarantee of market access or right of establishment in these areas.  The Embassy is aware of several cases in which the Bahamian government has granted foreign investors waivers to the policy and allowed full market access.

Other Investment Policy Reviews

The Bahamas ranks 118 out of 190 countries in terms of the ease of doing business in the 2018 World Bank Doing Business Report, with a Distance to Frontier score below the Caribbean regional average. (http://doingbusiness.org/rankings  .)

At present, The Bahamas is the only Western Hemisphere country that is not a member of the WTO.  The current government has re-engaged with the Accessions Division of the WTO with an aim of full membership by 2019, although this timeline may be delayed.  There is a small but vocal constituency against WTO accession that is unlikely to slow the government’s course.

Neither OECD nor UNCTAD have conducted investment policy reviews.  The Bahamas achieved the G-20 standard on transparency and cooperation on tax matters, a standard initially advanced by the OECD.

Business Facilitation

According to the 2018 World Bank Doing Business Index, starting a business in The Bahamas takes 46 days, requires seven separate procedures, and costs the same for both men and women.  In 2017, the Bahamian government streamlined this process and launched an e-business portal, which facilitated limited liability companies to register online (http://inlandrevenue.finance.gov.bs/business-licence/copy-applying-b-l/  ).  In early 2018, the government removed certain documentary requirements to register or renew registration of companies and is considering allowing company fees to be applicable on the date of incorporation to expedite the annual process.

All companies with an annual turnover of USD 100,000 or more are required to register with the government to receive a tax identification number.  The registration process is generally viewed as an impediment to the ease of conducting business. Additionally, companies are required to provide financial reports on a monthly or quarterly basis.

Outward Investment

The Bahamian government does not promote nor incentivize outward investment.  Additionally, the government does not restrict its citizens from investing internationally.

The Bahamas has no bilateral investment agreements but has signed tax information exchange agreements with 33 countries, including the United States.  The agreement designates the country as a qualified jurisdiction and allows U.S. companies to qualify for tax credits for conventions and related corporate expenses.

The country was the first in the Caribbean region to sign the Foreign Account Tax Compliance Agreement (FATCA) with the United States and since September 2015, has implemented a non-reciprocal inter-governmental agreement (Model 1B) to satisfy the obligations of the agreement. Additionally, the Bahamian government has passed enabling legislation and is engaged in public consultations to implement the Common Reporting Standard (CRS).

The country is a signatory to the Economic Partnership Agreement between the Caribbean Forum of the ACP Group of States and the European Union and remains a member of the Caribbean Community but does not participate in the free trade agreement portions of the regional agreement.  The Bahamas does not have a free trade agreement with the United States but is a member of CARICOM, which has a Trade and Investment Framework Agreement (2013).

Tax information exchange agreements to date include: Argentina (2009), Australia (2010), Belgium (2009), Canada (2010), China (2009), Czech Republic (2014), Denmark (2010), Faroe Islands (2010), Finland (2010), France (2009), Georgia (2016), Germany (2010), Greenland (2010), Guernsey (2011), Iceland (2010), India (2011), Indonesia (2015), Ireland (2015), Japan (2011), Malta (2012), Mexico (2010), Monaco (2009), Netherlands (2009), Norway (2010), Poland (2013), Republic of Korea (2011), San Marino (2009), South Africa (2011), Spain (2010), Sweden (2010), United Kingdom (2009), and the United States of America (2002).

Transparency of the Regulatory System

The Bahamas’ legal and regulatory systems are transparent and consistent with international norms, and the Bahamian government is engaged in making reforms to public accounting procedures to conform to international financial reporting standards.  Proposed legislation is available at the Government Publications office and public comment and engagement of stakeholders is encouraged, particularly on legislation perceived as controversial. There is no equivalent to the Federal Register, but the government regularly updates its website (www.bahamas.gov.bs  ) and includes draft legislation and policy pronouncements by Ministers of Government.  There is regulatory system reform legislation, but it has not been fully implemented. In some instances, there is public consultation on investment proposals but the process is not required by law.  The Embassy is unaware of any informal regulatory processes managed by non-governmental organizations (NGOs) or private sector associations that restrict foreign participation in the economy.

International Regulatory Considerations

The country is not a member of a regional economic block and re-engaged with the WTO secretariat in 2017 to continue negotiations to join the organization.  The Bahamian government had a fourth meeting with the Working Party in April 2019 and reiterated its intention to complete plans to join the organization.

The country is not a member of UNCTAD’s international network of transparent investment procedures but is actively reviewing investment policies with the aim of developing comprehensive, WTO-compliant investment legislation.

The Bahamas Bureau of Standards and Quality (BBSQ) was launched in 2016 and benefits from EU-funded technical assistance to the Caribbean Regional Organization for Standards and Quality (CROSQ) in the development of national standards.

The Embassy is not aware of any discriminatory technical barriers to trade.

Legal System and Judicial Independence

The Bahamian legal system is based on English Common law and foreign nationals are afforded full rights in Bahamian legal proceedings.  Contracts are legally enforced through the courts; however, many companies have reported that there are many cases where investors have civil disputes tied up in the court system for many years.  Others have lost entire sums ranging from several hundred thousand to several million dollars due to fraud. In these instances, the court system has not been a viable option to recover their investments.

The judiciary is independent and allegations of government interference in the judicial process are rare.  The Chief Justice of the Supreme Court; the Attorney General, who serves as the government’s chief legal advisor; the Director of Public Prosecutions, who is responsible for public prosecutions; and the President of the Court of Appeals are appointed by the Governor-General upon recommendation of the Prime Minister in consultation with the leader of Her Majesty’s Loyal Opposition.  The Bahamas is a member of the Commonwealth of Nations and uses the Privy Council Judicial Committee in London as the final court of appeal. The country also contributes financially to the operations of the Caribbean Court of Justice and announced its intention to develop itself as a center for international arbitration.

Judgments by British Courts and selected Commonwealth countries can be registered and enforced in The Bahamas under the Reciprocal Enforcement of Judgments Act.  Court judgments from other countries, including those of the United States, must be litigated in the local courts and are subject to all Bahamian legal requirements.  The judiciary is independent, and judicial process can be slow and less than transparent; however, the current government is taking steps to increase judicial transparency and efficiency.

Laws and Regulations on Foreign Direct Investment

No major laws, regulations, or judicial decisions on foreign direct investment have been passed since the 2018 Investment Climate Statement.

Competition and Anti-Trust Laws

The fledgling Utilities Regulation and Competition Authority (URCA) regulates the telecommunications sector and new regulations have expanded the mandate to include the regulation of the energy sector.  URCA is building technical capacity with the support of the U.S. government. There is no legislation governing competition or anti-trust.

Expropriation and Compensation

Property rights are protected under Article 27 of The Bahamian Constitution, which prohibits the deprivation of property without prompt and adequate compensation.  There have been compulsory acquisitions of property for public use, but in all instances, there was satisfactory compensation at fair market value.

The Embassy is not aware of any direct or indirect expropriation actions in The Bahamas.  There is no indication that the Bahamian government will consider the implementation of expropriations as an instrument of government policy.

Dispute Settlement

ICSID Convention and New York Convention

The Bahamas is a member of both the International Centre for Settlement of Investment Disputes (ICSID) Convention (adopted 1995) and the New York Convention (adopted 1958).  The Arbitration Act of 2009 enacted the New York Convention and provides a legal framework. The Bahamas has been a member of the International Center for the Settlement of Investment Disputes since 1995 and is also a member of the Multilateral Investment Guarantee Agency.  This agency insures investors against current transfer restrictions, expropriation, war and civil disturbances, and breach of contract by member countries.

Investor-State Dispute Settlement

Order 66 of the Rules of the Bahamian Supreme Court provides rules for arbitration proceedings.  The 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards entered into force for The Bahamas on March 20, 2007.  This convention provides for the enforcement of agreements for commercial disputes. Under the convention, courts of a contracting state can enforce such an agreement by referring the parties to arbitration.  There are no restrictions on foreign investors negotiating arbitration provisions in private agreements. The government announced its intention to establish The Bahamas as a center for international arbitration cases, but a body has yet to be formally established.  Investment disputes in The Bahamas that directly involve the Bahamian government are rare.

The Bahamas is not a signatory to a bilateral international trade agreement with a developed dispute settlement mechanism and, therefore, disputes must be settled within the judicial system or be subject to international arbitration.  There is no history of extrajudicial action against foreign investors.

International Commercial Arbitration and Foreign Courts

The Bahamas is a member of the Multilateral Investment Guarantee Agency, which insures investors against current transfer restrictions, expropriation, war and civil disturbances, and breach of contract by member countries.  Local courts enforce and recognize foreign arbitral awards and foreign investors are provided national treatment. Disputes between companies are generally handled in local courts but foreign investors can refer cases to ICSID and in at least one instance, recourse was sought in a U.S. court in a dispute involving a USD 4 billion resort development.  The Embassy is not aware of any cases involving state owned enterprises that resulted in litigation.

Bankruptcy Regulations

Company liquidations, voluntary or involuntary, proceed according to the Companies Act.  Liquidations are routinely published in newspapers in accordance with the legislation. Creditors of bankrupt debtors and liquidated companies participate in the distribution of the bankrupt debtor’s or liquidated company’s assets according to statute.  U.S. investors should be aware that there is no equivalent to Chapter 11 bankruptcy law provisions to protect assets located in The Bahamas. The Bahamian government passed the Credit Reporting Act in February 2018 to establish a credit bureau. On April 13, 2018, the Central Bank of The Bahamas issued a request for proposal (RFP) inviting qualified credit bureau operators with international exposure to submit proposals.  The preferred credit bureau operator, Italian owned CRIF S.p.A was announced as the company chosen on January 17, 2019.

Investment Incentives

Tax relief is the most significant investment incentive in The Bahamas.  The government does not impose taxes on income, estates, or inheritances in the country.  Other incentives for investment include waivers on import duties, property tax abatement, and, in some cases, land grants or extended leases for private development at below-market rates.  Incentives are negotiated directly with the BIA and require the approval of the NEC. In some instances, terms of the incentives are outlined in a heads of agreement and the size of the concessions will vary depending on the scale of a project.

Further information on investment incentives is available at http://www.bahamas.gov.bs  .

Foreign Trade Zones/Free Ports/Trade Facilitation

The city of Freeport on the island of Grand Bahama is a 233 square mile Free Trade Zone.  The Hawksbill Creek Agreement (1955) between the Bahamian government and the Grand Bahama Port Authority guarantees that the “special economic zone” can continue to exist until 2054. Businesses operating in Freeport are exempt from most central government taxes (real property, excise, import, and business taxes) and subject to licensing by the Grand Bahama Port Authority. The Bahamian government has made several efforts to regulate business activities and extract tax revenues from the free zone.  Most efforts have been litigated to the Port’s benefit and the FNM administration repealed legislation that differentiated between local and foreign licensees within the Port.

Performance and Data Localization Requirements

The Bahamas maintains few formal performance requirements for investments.  During the approvals process, an investor provides proof of adequate and legitimate sources of funding and, depending on the type of investment, produces economic and environmental impact assessments.  The government negotiates requirements on a project-by-project basis, and, particularly in the case of larger developments, writes a “heads of agreement,” between the government and the investor. These agreements also include government obligations to the investor.  There is no official mandate for hiring local personnel, though many heads of agreement stipulate the proportion of workers who must be Bahamian.

There is no policy of forced localization or a legal requirement for technology transfers, but there is official encouragement to direct benefits to local producers and the transfer of skills to the local labor market.  This engagement is a part of the negotiations with the government and it is not uncommon for an investor to gain greater concessions where there is a direct benefit to local businesses, job creation, or an investment that supports the transfer of skills and technology.

The government negotiates work permits, but generally facilitates them for key employees, as part of the investment approvals process.  For non-essential services, the Bahamian government requires that investors document efforts to recruit local Bahamians as part of their applications for work permits, but the law does not stipulate an exact percentage.  Investors in second homes can apply for permanent residency and can benefit from expedited approval for investments that exceed USD 750,000. Fees for work permits do not cover the administrative costs, and the government collects them as a revenue measure.  Depending on the category, work permits can cost up to USD 12,500 annually.

Real Property

The Bahamas’ score for ease of “registering property” in the World Bank’s 2018 Doing Business Report is 169 out of 190 countries.  The cost of registering property in The Bahamas dropped slightly to 4.3 percent of property value, as compared with 5.8 percent for Latin America and The Caribbean, and 4.2 percent for OECD high-income countries.  The time to complete the registration process remains high at 15 days, and there has been limited progress in creating digital land registries or establishing time limits for procedures. These facts resulted in the World Bank ranking quality of land administration at 3 on a scale of 0 to 30.  The Bahamian government does not publish an official number citing the proportion of land without clear title. Property legally purchased, but unoccupied, cannot revert to other owners, such as squatters.

The various forms of land ownership in The Bahamas have their foundation in English law and can include crown land, commonage land, and generational land.  The legal system facilitates the investor’s secured interest in both mobile and immobile property and is recognized and enforced in law. Mortgages in real property and security interests in personal property are recorded with the Registrar General of The Bahamas.

The Embassy has received reports of problems obtaining clear title to property, either because the seller had no legal right to convey, or because separate claims to ownership arose after a purchase was made.

Intellectual Property Rights

The Bahamian government is taking steps to strengthen Intellectual Property Rights (IPR) protection as part of its WTO accession process.  These new regulations cover patents, trademarks, copyrights, integrated circuits, false trade descriptions act, protection of new plant varieties, and geographical indicators.

The government anticipates the new regulations will bring The Bahamas into compliance with the terms of the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

The Bahamas is a member of the World Intellectual Property Organization (WIPO) but has not ratified the WIPO Internet treaties.  The Bahamas is also signatory to the following intellectual property conventions and agreements:

• Berne Convention for the Protection of Literary and Artistic Works;
• Paris Convention for the Protection of Industrial Property;
• Universal Copyright Convention (UCC);
• Convention establishing the World Intellectual Property Organization (WIPO);
• Convention on the means of prohibiting and preventing the illicit import, export, and transfer of ownership of cultural property.

The Bahamas has not recently been listed as a country of concern in the U.S. Trade Representative’s (USTR) Special 301 Report and is not named in the Notorious Markets List.

The Bahamas’ intellectual property registry is maintained by the Department of the Registrar General and enforcement responsibility is coordinated by the Royal Bahamas Police Force with support from Bahamas Customs.

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/  .

Capital Markets and Portfolio Investment

The Bahamian government encourages the free flow of capital to markets, and the Central Bank of The Bahamas supports this flow through its functions.  The Bahamas is an Article VIII member of the IMF and has agreed not to place restrictions on currency transactions, such as payments for imports. The Bahamas Securities Commission regulates the activities of investment funds, securities, and capital markets (www.scb.gov.bs  ).  The fledgling local stock market excludes foreign investors but is effectively regulated by the Securities Commission.

There are no legal limitations on foreigners’ access to the domestic credit market, and commercial banks make credit available on market terms.  The government encourages Bahamian-foreign joint venture businesses, which are eligible for financing through both commercial banks and the Bahamas Development Bank (http://www.bahamasdevelopmentbank.com/  ).

Money and Banking System

The financial sector of The Bahamas is highly developed and dynamic and consists of savings banks, trust companies, offshore banks, insurance companies, a development bank, a publicly controlled pension fund, a housing corporation, a public savings bank, private pension funds, cooperative societies, credit unions, commercial banks, and the majority state-owned Bank of The Bahamas.  These institutions provide a wide array of services via several types of financial intermediaries. The Central Bank of The Bahamas, the Securities Commission, Insurance Commission, the Inspector of Financial and Corporate Service Providers, and the Compliance Commission regulate the financial sector.

According to the Central Bank’s Quarterly Economic Review ending December 2018, liquidity and external reserves experienced a reversal from the significant increases recorded in 2017, when the government received the net proceeds from its external bond issue.  The latest available performance indicators for third quarter 2018 showed an improvement in overall bank profitability, attributed to reductions in provisions for bad debts and operating outlays. Bank capital levels remained robust during the fourth quarter and well in excess of regulatory requirements.  Non-performing loans and total arrears firmed by 3.9 and 1.9 percentage points, to 84.8 percent and 54.2 percent, respectively. Banks also wrote-off a total of USD 30.5 million in delinquent loans and recovered approximately USD 6.0 million during the review quarter.

In the domestic banking sector, four of the eight commercial banks are subsidiaries of Canadian banks, three are locally owned, and one is a branch of a U.S.-based institution.  Recent reorganization by the Canadian banks has severely limited banking services on some of the less populated islands.

The Central Bank is exploring the use of block chain technologies to modernize payment systems.  In March 2018, it announced its intention to develop a digital version of the Bahamian dollar within 24 to 30 months.  The Central Bank’s strategic goals include responding to the loss of brick-and-mortar banks, particularly in the Family Islands, by implementing electronic funds transfer across the country and providing access for individuals to basic financial services through digital media.  To this end, the Bank is leading efforts to develop a digital identification system with appropriate legal infrastructure.

Foreign Exchange and Remittances

Foreign Exchange Policies

The Bahamas maintains a fixed exchange rate policy, which pegs the Bahamian dollar one-to-one with the U.S. dollar.  The legal basis for the policy is the Exchange Control Act of 1974 and Exchange Control Regulations. The controls ensure adequate foreign exchange flows are always available to support the fixed parity of the Bahamian dollar against the U.S. dollar.  For the tourism-dependent economy, the peg removes issues of rate conversions and allows for unified pricing of goods and services for tourists and residents. To maintain this structure, individuals and corporations resident in The Bahamas are subject to capital or exchange controls.

Exchange controls are not an impediment to foreign investment in the country.  The government requires all non-resident investors in The Bahamas to register with the Central Bank, and the government allows non-resident investors who finance their projects substantially from foreign currency transferred into The Bahamas to convert and repatriate profits and capital gains freely.  They do this with minimal bureaucratic formalities and without limitations on the inflows or outflows of funds.

In the administration of exchange controls, the Central Bank does not withhold or delay approval for legitimate foreign exchange purchases for currency transactions and, in the interest of facilitating international trade, it delegates this authority to major commercial banks and selected trust companies.  International and local commercial banks, which are registered by the Central Bank as ‘Authorized Dealers,’ may administer and conduct foreign currency transactions with residents of The Bahamas. Similarly, private banks and trust companies which are designated as ‘Authorized Agents’ are permitted to act as depositories for foreign securities of residents and to conduct securities transactions for non-resident companies under their management.

The Central Bank directly approves foreign exchange transactions that fall outside of the delegated authority, including loans, dividends, issues and transfer of shares, travel facilities, and investment currency.  The government has continued gradual liberalization of exchange controls over the years with the most recent measure implemented in April 2016. The new measures delegated increased authority to commercial banks for exchange control and seek to regularize nationals holding accounts in the United States by allowing nationals to open U.S. dollar denominated accounts within the jurisdiction.

Remittance Policies

There are no restrictions on investment remittances.  Foreign investors who receive a Central Bank designation as a non-resident may open foreign currency-denominated bank accounts and repatriate those funds freely.  In addition, with Central Bank approval, a foreign investor may open an account denominated in Bahamian currency to pay local expenses. As mentioned, increased authority has been delegated to commercial banks and money transfer businesses.

The Bahamas is a member of the Caribbean Financial Action Task Force (CFATF).  Its most recent peer review evaluation and follow-up reports can be found at (https://www.cfatf-gafic.org/index.php/member-countries/the-bahamas  ).

Sovereign Wealth Funds

The Bahamian government passed omnibus legislation for the effective management of the oil and gas sector in 2017, which included the creation of a sovereign wealth fund, but has not yet promulgated supporting regulations.

Local and foreign companies operating in The Bahamas have become more aware of and committed to Responsible Business Conduct (RBC).  Local companies have led RBC-related initiatives, including educational programs directed at capacity building for specific industries, the maintenance of public spaces, and financial and technical assistance to charitable organizations.

The government encourages and enforces RBC through legislation, but it has been slow to implement the legislation.  The Bahamas enacted laws protecting individuals with disabilities from discrimination in the workplace, but lack of financial and human resources limits the enforcement of these laws.  There have been no high profile controversial instances of corporate violations of human rights, but civil society remains active in bringing attention to social issues.

Recent steps in support of RBC also include a requirement for local gaming houses to allocate three percent of net profits to community-based social development programs.  Several have established foundations that support issues ranging from the environment to education. The Bahamas has strong trade unions, and labor laws prohibit discrimination in employment based on race, creed, sex, marital status, political opinion, age, HIV status, or disability.

The Bahamas is not an adhering government to the OECD Guidelines for Multinational Enterprise.

The government has laws to combat corruption of and by public officials, but companies have reported that until recently they have been inconsistently applied.  Reports of corruption, including allegations of widespread patronage and the routine directing of contracts to party supporters and benefactors, have plagued the political system for decades.

In The Bahamas, giving a bribe to, or accepting a bribe from, a government official is a criminal act under the Prevention of Bribery Act.  The penalty under this act is a fine of up to USD 10,000, or a maximum prison term of four years, or both. In October 2015, the government charged and convicted a former state energy company board member under the Prevention of Bribery Act, the first significant case brought under the Act since 1989.  In May 2017, the FNM government won election on a mandate to end corruption. Early in the administration, the government charged a former PLP Senator with extortion and bribery, although the PLP-appointed Chief Magistrate dismissed the case for lack of evidence. In February 2019, the government arraigned a former Urban Renewal Deputy Director on charges related to defrauding the government.  The case is ongoing.

The Public Disclosure Act requires senior public officials, including senators and members of parliament, to declare their assets, income, and liabilities on an annual basis.  The government publishes a summary of the individual declarations.

According to Transparency International’s 2018 Corruption Perceptions Index, The Bahamas ranked 29 out of 180 countries with a score of 65 out of 100.  There are no protections for NGOs involved in investigating corruption. U.S firms have identified corruption as an obstacle to FDI and have reported perceived corruption in government procurement and in the FDI approvals process.

The Government of the Commonwealth of the Bahamas does not, as a matter of government policy, encourage or facilitate illicit drug production or distribution, nor is it involved in laundering the proceeds of the sale of illicit drugs.  No charges of drug-related corruption were filed against government officials in 2018.

The Bahamas ratified major international corruption instruments, including the Inter-American Convention against Corruption since signing in 1998 (ratified in 2000), and has been a party to the Mechanism for Follow-Up on the Implementation of the Inter-American Convention against Corruption (MESICIC) since June 2001.  The Bahamas is not party to the OCED Convention on Combatting Bribery of Foreign Public Officials in International Business Transactions.

Resources to Report Corruption

Contact at government agency or agencies responsible for combating corruption:

Royal Bahamas Police Force
Anti- Corruption Unit
P.O. Box N-458
(242) 322-4444
Email: info@rbpf.bs

Contact at “watchdog” organization:

Citizens for a Better Bahamas
Transparency International (Bahamas Chapter)
(242) 322-4195
Email: lemarque@abetterbahamas.org
Email: info@abetterbahamas.org

The Bahamas has no history of politically motivated violence and, barring a few incidents leading up to the last general elections, the political process is violence-free and transparent.  These incidents were minor and included damage to political party installations, signage, billboards, and a few reported altercations between opposing party members.

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy

Table 3: Sources and Destination of FDI

Data not available.

Table 4: Sources of Portfolio Investment

Data not available.

Policies Towards Foreign Direct Investment

The government of Barbados, through Invest Barbados, welcomes foreign direct investment with the stated goals of creating jobs, earning foreign exchange, transferring technology, enhancing skills, and contributing to economic growth.

Barbados encourages investment in the following key sectors: international financial services, tourism, information technology, education, health, cultural services, agro-processing, medical schools, and renewable energy, as well as newer areas like financial technology.  In the international financial services sector, the government maintains its regulatory oversight to prevent money laundering and tax evasion.

Through Invest Barbados, the government facilitates domestic and foreign private investment. Invest Barbados’ mandate is to actively promote Barbados as a desirable investment location, to provide advice, and to assist prospective investors.  Invest Barbados also provides customized support for investors to ensure the expansion and sustainability of the initial investment.

Limits on Foreign Control and Right to Private Ownership and Establishment

There are no limits on foreign control in Barbados.  Nationals and non-nationals may establish and own private enterprises and private property in Barbados.  These rights extend to the acquisition and disposition of interests in private enterprises.

No industries are closed to private enterprise, although the government reserves the right not to allow certain investments.  Some activities, such as telecommunications, utilities, broadcasting, franchises, banking, and insurance require a government license.  There are no quotas or other restrictions on foreign ownership of a local enterprise or participation in a joint venture.

Other Investment Policy Reviews

Barbados has not conducted a trade policy review in the last three years.

Business Facilitation

Invest Barbados is the main investment promotion agency attracting and facilitating foreign investment.  All potential investors applying for government incentives must submit their proposals for review by Invest Barbados to ensure the projects are consistent with national interests and provide economic benefits to the country.

 Invest Barbados offers guidance and direction to new and established investors seeking to pursue investment opportunities in Barbados.  The process is transparent and takes into account the size of capital investment as well as the economic impact a proposed project will have on the country.

Invest Barbados offers a website that is useful for navigating applicable laws, rules, procedures, and registration requirements for foreign investors.  This is available at http://www.investbarbados.org  .  Steps to establish a business vary based on the type of business a foreign investor wishes to set up.  Potential investors should contact Invest Barbados for guidance.

The Corporate Affairs and Intellectual Property Office (CAIPO) maintains an online e-registry filing service for matters pertaining to the Corporate Registry.  It is available to registered agents (usually attorneys). Information is available at www.caipo.gov.bb.

Barbados ranks at 101 of 190 countries in the indicator of the ease of starting a business, which takes eight procedures and approximately 15 days to complete, according to the 2019 World Bank Doing Business Report.  The general practice is to retain an attorney to prepare relevant incorporation documents. A business must register with the CAIPO, the Barbados Revenue Authority (BRA), the Customs and Excise Department, and the National Insurance Scheme (NIS).

The government of Barbados continues to facilitate programs and partnerships to assist women entrepreneurs and people with disabilities.  The government of Barbados remains committed to working with civil society and other organizations to meet the UN Sustainable Development Goals by 2030.

Outward Investment

While no incentives are offered, Barbados generally encourages local companies to invest in other countries, particularly within the region.  Local companies in Barbados are actively encouraged to take advantage of export opportunities specifically related to the country’s membership in the Caribbean Community (CARICOM) and the Caribbean Single Market and Economy (CSME).  The Barbados Investment Development Corporation (BIDC) provides market development support for domestic companies seeking to enhance their export potential.

Barbados does not have a bilateral investment treaty with the United States, but does have a double taxation treaty and a tax information exchange agreement.  Barbados has bilateral investment treaties with Canada, China, Cuba, Germany, Italy, Mauritius, Switzerland, the United Kingdom, and Venezuela. In addition to the United States, Barbados also has tax information exchange agreements with Denmark, the Faroe Islands, Greenland, and South Africa.  Bilateral investment treaties with Belgium/Luxembourg and Ghana are awaiting ratification. Barbados has a vast double taxation agreement network of 40 countries including Spain, Italy, the United Kingdom, Bahrain, Qatar, the United Arab Emirates, Singapore, China, Austria, Iceland, San Marino, Mexico, Panama, and Canada, with others awaiting ratification or signature.  Additional information is available from Invest Barbados. Barbados is also party to the following:

Caribbean Community (CARICOM)

The Treaty of Chaguaramas established the CARICOM in 1973.  Its purpose is to promote economic integration among its 15 member states.  Investors operating in Barbados have preferential access to the entire CARICOM market.  The Revised Treaty of Chaguaramas (RTC) establishes the CSME, which permits the free movement of goods, capital, and labor among CARICOM states.  CARICOM has bilateral agreements with Cuba, Colombia, Costa Rica, the Dominican Republic, and Venezuela. In 2013, CARICOM entered into a Trade and Investment Framework Agreement with the United States.

Economic Partnership Agreement (EPA)

The Caribbean Forum of African, Caribbean and Pacific States (CARIFORUM) and the European Community signed an EPA in 2008.  The overarching objectives of the EPA are to alleviate poverty, promote regional integration and economic cooperation, and foster the gradual integration of the CARIFORUM states into the world economy by improving trade capacity and creating an investment-conducive environment.  The Agreement promotes trade-related developments in areas such as competition, intellectual property, public procurement, the environment, and the protection of personal data.

Caribbean Basin Initiative (CBI)

The trade programs known collectively as the CBI facilitate the economic development and export diversification of the Caribbean Basin economies.  The CBI promotes economic development through private sector initiatives in Central America and the Caribbean by expanding foreign and domestic investment in non-traditional sectors, diversifying CBI country economies, and expanding their exports.  The CBI provides beneficiary countries with duty-free access to the U.S. market for most goods. It permits duty-free entry of products manufactured or assembled in Barbados into the United States.

Caribbean / Canada Trade Agreement (CARIBCAN)

CARIBCAN is an economic and trade development assistance program for Commonwealth Caribbean countries in which Canada provides duty-free access to its national market for the majority of products originating in Commonwealth Caribbean countries.

Transparency of the Regulatory System

Barbados’ legal framework fosters competition and establishes clear rules for foreign and domestic investors with regard to tax, labor, environmental, health, and safety concerns.  These regulations are in keeping with international standards. The Ministry of Finance and Economic Affairs and Invest Barbados provide oversight aimed at ensuring the attraction and channeling of investment occurs transparently.

Rulemaking and regulatory authority rest with the bicameral parliament of the government of Barbados.  The House of Assembly consists of 30 members who are elected in single seat constituencies. The Senate consists of 21 members who are appointed by the Governor General.

Foreign investment into Barbados is governed by a series of laws and their implementing regulations.  These laws and regulations are developed with the participation of relevant ministries, drafted by the Office of the Attorney General, and enforced by the relevant ministry or ministries.  Additional compliance supervision is delegated to specific agencies, by sector, as follows:

• Banking and financial services – CBB
• Insurance and non-banking financial services – Financial Services Commission (FSC)
• International business – International Business Unit, Ministry of International Business
• Business incorporation and intellectual property – CAIPO

The Ministry of Finance and Economic Affairs monitors investments to collect information for national statistics and reporting purposes.

All foreign businesses must be registered or incorporated through CAIPO and will be regulated by one of the other aforementioned agencies depending on the nature of the business.

Although Barbados does not have legislation that guarantees access to information or freedom of expression, access to information is generally available in practice.  The government maintains a website and an information service to facilitate the dissemination of information such as government office directories and press releases. The Government Information Service (BGIS) website is available at: http://gisbarbados.gov.bb/  .  The government also maintains a parliamentary website where it posts legislation prior to parliamentary debate and live streams House sittings.  The government budget is also available on this website, http://www.barbadosparliament.com/  .

Although some bills are not subject to public consultation, input from various stakeholder groups and agencies is enlisted during the initial drafting of legislation.  Public awareness campaigns, through print and electronic media, are used to inform the general public. Copies of regulations are circulated to stakeholders, and government ministries and departments, and are published in the Official Gazette after passage in parliament.

Accounting, legal, and regulatory procedures are transparent.  Publicly listed companies publish annual financial statements and changes in portfolio shareholdings, including share values.  Service providers are required to adhere to international best practice standards including International Financial Reporting Standards (IFRS), International Standards on Auditing (ISA), and International Public Sector Accounting Standards (IPSAs) for government and public sector bodies.  They must also comply with the provisions of the Money Laundering and Financing of Terrorism Prevention and Control Act. Accounting professionals in particular must engage in continuous professional development. The Corporate and Trust Service Providers Act regulates Barbadian financial service providers.  Failure to adhere to these laws and regulations may result in revocation of the business license and/or cancellation of work permit(s). The most recent Caribbean Financial Action Task Force (CFATF) Mutual Evaluation assessment found Barbados to be largely compliant.

The Office of the Ombudsman is established by the constitution to guard against abuses of power by government officers in the performance of their duties.  The Office of the Ombudsman aims to provide quality service in an impartial and expeditious manner when investigating complaints by Barbadian nationals or residents who consider the conduct of a government body or official unreasonable, improper, inadequate, or unjust.

The Office of the Auditor General is also established by the constitution and is regulated by the Financial Administration and Audit Act.  The Auditor General is responsible for the audit and inspection of all public accounts of the Supreme Court, the Senate, the House of Assembly, all government ministries, government departments, government-controlled entities, and statutory bodies.  The Office of the Auditor General’s annual reports can be found on the parliament of Barbados website.

International Regulatory Considerations

The OECD recognized Barbados as largely compliant with international regulatory standards.   Barbados is a signatory to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, the Multilateral Competent Authority Agreement, and the Multilateral Convention to Implement Tax Treaty Related Matters to Prevent Base Erosion and Profit Shifting.

The Barbados National Standards Institution (BNSI) was established in 1973 as a joint venture between the government of Barbados and the private sector.  It oversees a laboratory complex housing metrology, textile, engineering, and chemistry/microbiology laboratories. The primary functions of the BNSI include the preparation, promotion, and implementation of standards in all sectors of the economy, including the promotion of quality systems, quality control, and certification.  The Standards Act (2006) and the Weights and Measures Act (1977) and Regulations (1985) govern the work of the BNSI. As a signatory to the World Trade Organization (WTO) Agreement on the Technical Barriers to Trade, Barbados, through the BNSI, is obligated to harmonize all national standards to international norms to avoid creating technical barriers to trade.

Barbados ratified the WTO Trade Facilitation Agreement (TFA) in 2018.  With full implementation, the Agreement improves the speed and efficiency of border procedures, facilitates trade costs reduction, and enhances participation in the global value chain.  Barbados has implemented the Automated System for Customs Data (ASYCUDA).

Legal System and Judicial Independence

Barbados’ legal system is based on the British common law.  Modern corporate law is modeled on the Canada Business Corporations Act.  The Attorney General, the Chief Justice, junior judges, and magistrates administer justice in Barbados.  The Supreme Court consists of the Court of Appeal and the High Court. Parties may appeal to the Court of Appeal.  The High Court hears criminal and civil (commercial) matters and makes determinations on the interpretation of the constitution.

The Caribbean Court of Justice (CCJ) is the regional judicial tribunal.  The CCJ has original jurisdiction to interpret and apply the RTC. In 2005, Barbados became a full member of the CCJ, making the body its final court of appeal and original jurisdiction of the RTC.

The United States and Barbados are both parties to the WTO.  The WTO Dispute Settlement Panel and Appellate Body resolve disputes over WTO agreements, while courts of appropriate jurisdiction in both countries resolve private disputes.

Laws and Regulations on Foreign Direct Investment

Invest Barbados’ foreign direct investment policy is to promote Barbados as a desirable investment location, to provide advice, and to assist prospective investors.  The main laws concerning investment in Barbados are the Barbados International Business Promotion Act (2005), the Tourism Development Act (2005), and the Companies Act.  There is also a framework of legislation that supports the jurisdiction as a global hub for business including insurance, ships’ registration, and wealth management.

All proposals for investment concessions are reviewed by Invest Barbados to ensure proposed projects are consistent with the national interest and provide economic benefits to the country.

Invest Barbados provides complimentary “one-stop shop” facilitation services to investors to guide them through the investment process.  It offers a website useful for navigating the laws, rules, procedures, and registration requirements for foreign investors. This is available at http://www.investbarbados.org   .

Competition and Anti-Trust Laws

Chapter 8 of the RTC outlines the competition policy applicable to CARICOM states.  Member states are required to establish and maintain a national competition authority for facilitating the implementation of the rules of competition.  At the CARICOM level, a regional Caribbean Competition Commission (CCC) applies the rules of competition. The CARICOM competition policy addresses anticompetitive business conduct such as agreements between enterprises, decisions by associations of enterprises, and concerted practices by enterprises that have as their object or effect the prevention, restriction, or distortion of competition within the Community and actions by which an enterprise abuses its dominant position within the Community.  The Fair Competition Act codified the establishment of the Barbados Fair Trading Commission (FTC) in 2001. The FTC is responsible for the promotion and maintenance of fair competition and participates in the CCC. The FTC regulates the principles, rates, and standards of service for public utilities and other regulated service providers. The Telecommunications Act regulates competition in the telecommunications field.

Expropriation and Compensation

The Barbados constitution and the Companies Act (Chap. 308) contain provisions permitting the government to acquire property for public use upon prompt payment of compensation at fair market value.  U.S. Embassy Bridgetown is not aware of any outstanding expropriation claims or nationalization of foreign enterprises in Barbados.

Dispute Settlement

ICSID Convention and New York Convention

The government of Barbados wrote the New York Convention’s provisions into domestic law, but did not ratify the convention.  The Arbitration Act (1976) and the Foreign Arbitral Awards Act (1980), which recognizes the 1958 New York Convention on the Negotiation and Enforcement of Foreign Arbitral Awards, are the main laws governing dispute settlement in Barbados.

Barbados is also a member of the International Center for the Settlement of Investment Disputes (ICSID), also known as the Washington Convention.  Individual agreements between Barbados and multilateral lending agencies also have provisions calling on Barbados officials to accept recourse to binding international arbitration to resolve investment disputes between foreign investors and the state.

Investor-State Dispute Settlement

The Barbados Arbitration Act (1976) and the Foreign Arbitral Awards Act (1980) provide for arbitration of investment disputes.  Barbados does not have a Bilateral Trade Treaty or a Free Trade Agreement with an investment chapter with the United States. U.S. Embassy Bridgetown is not aware of any current investment disputes in Barbados.

Barbados ranks 170 out of 190 countries in enforcing contracts according to the 2019 World Bank Doing Business Report.  Dispute resolution in Barbados generally takes an average of 1,340 days. The slow court system and bureaucracy are widely seen as the main hindrances to timely resolution of commercial disputes.  Through the Arbitration Act of 1976, local courts recognize and enforce foreign arbitral awards issued against the government. Barbados does not have recent cases of investment disputes involving either U.S. or foreign investors.

International Commercial Arbitration and Foreign Courts

The Supreme Court of Barbados is the domestic arbitration body.  Local courts enforce foreign arbitral awards.

Bankruptcy Regulations

Under the Bankruptcy and Insolvency Act (2002), Barbados has a bankruptcy framework that recognizes certain debtor and creditor rights.  The Act gives a potentially bankrupt company three options: bankruptcy (voluntary or involuntary), receivership, or reorganization of the company.  The Companies Act provides for the insolvency and/or liquidation of a company incorporated under this Act. Barbados was ranked 34 out of 190 countries in resolving insolvency in the 2019 World Bank Doing Business Report.

Investment Incentives

In January 2019, Barbados repealed its Fiscal Incentives Act, bringing the country into conformity with its obligations under the WTO and in particular the Agreement on Subsidies and Countervailing Measures (SCM Agreement).  Manufacturers may still benefit from some concessions. For further information, please contact Invest Barbados.

The Small Business Development Act (1999) defines a small business as having no more than 25 employees.  Small businesses must be registered under the Companies Act, which applies to domestic and foreign-owned micro- and small enterprises. Small businesses are not eligible for incentives under the Tourism Development Act, the Special Development Areas Act, or the Shipping Incentives Act.

Enterprises generating export profits (other than from exports within CARICOM) may receive an export allowance expressed as a rebate of corporate tax on those profits.  The maximum rebate of 93 percent applies if more than 81 percent of an enterprise’s profits result from extra-regional exports. The export development allowance permits a company to deduct from taxable income an additional 50 percent of what the company spends in developing export markets outside CARICOM.

Initial allowances or investment allowances of up to 40 percent on capital expenditure are available for businesses making capital expenditures on machinery and plants or on an industrial building or structure.  The government also allows annual depreciation allowances on such expenditures.

In the tourism sector, the government’s market development allowance permits a company to deduct an additional 50 percent of what it spends to encourage tourists to visit Barbados.  Under the Tourism Development Act of 2002, businesses and individuals that invest in the tourism sector can write off capital expenditure and 150 percent of interest. These entities are also exempt from import duties and environmental levies on furniture, fixtures and equipment, building materials, supplies, and equity financing.  The Act expands the definition of tourist sector beyond accommodation to include restaurants, tourist recreational facilities, and tourism-related services. The Act encourages the development of attractions that emphasize the island’s natural, historic, and cultural heritage, and encourages construction of properties in non-coastal areas.

In response to concerns by the OECD and the European Union’s Tax Code of Conduct Group, the government of Barbados has reformed its international business sector regime by harmonizing the legislative and tax frameworks for domestic and international companies.   Companies conducting international business may operate with a tax rate from 1 to 5.50 percent. Companies exporting 100 percent of their services or products are able to apply for a foreign currency permit, affording them similar benefits previously enjoyed by international business companies and international societies with restricted responsibility.  For fiscal years commencing on or after January 1, 2019, all corporate entities will be taxed on the sliding scale shown:

There are no withholding taxes on dividends, interest, royalties, or management fees paid to non-residents.

Foreign Trade Zones/Free Ports/Trade Facilitation

There are currently no foreign trade zones or free ports in Barbados.

Performance and Data Localization Requirements

Foreign investors must finance their investments from external sources or from income that the investment generates.  When a foreign investment generates significant employment or other tangible benefits for the country, the authorities may allow the company to borrow locally for working capital.  Invest Barbados may provide a training grant to qualifying manufacturing and information and communication technology enterprises during the initial operating period.

Barbados does not require that locals own shares of a foreign investor’s enterprise, but some restrictions may apply to share transfers.  The Companies Act does not permit bearer shares. Foreign investors do not need to establish facilities in any specific location, although there are some zoning restrictions on residential and commercial construction for environmental reasons.  There is no requirement that enterprises must purchase a fixed percentage of goods from local sources. However, investors, particularly within the hospitality industry, are encouraged to use local products and produce wherever possible.

Non-nationals, including all managerial and technical staff, (but not nationals of CARICOM member states) seeking to work in Barbados must apply for work permits.  The work permit is specific to the job and employer and the permit may be granted for a period of up to five years. Short-term permits of up to six months are also available.  To grant a work permit, the government requires that the expatriate must bring to the job special skills or knowledge not readily available in Barbados. While work permits are readily granted to senior management, the government may restrict the number of permits approved depending on the number of people employed by the local company.  There are no restrictions regarding foreign directors of boards. More information is available at: www.immigration.gov.bb/pages/WorkPermit.aspx   .

There are no requirements for foreign information technology providers to turn over source code and/or provide access to surveillance (for example, backdoors into hardware and software turn over keys for encryption).

As a member of the WTO, Barbados is party to the Agreement to the Trade Related Investment Measures.  The government strongly encourages investments that will create jobs and increase exports and foreign exchange earnings.  Barbados does not require participation by nationals or by the government in foreign investment projects. Barbados encourages local sourcing, but does not require enterprises to purchase a fixed percentage of goods from local sources.  Foreign investors receive the same treatment as Barbadians.

Real Property

There are no restrictions on foreign ownership of property in Barbados.  Foreign investors and locals are treated equally with regard to property taxes.  Civil law protects physical property and mortgage claims. The CBB must verify real property purchases for non-residents.  If a non-resident uses foreign funds and pays for the property in Barbados, the CBB will normally endorse the transaction. The sale of property is subject to a 2.5 percent Property Transfer Tax in addition to a 1 percent stamp duty.  Brokerage and legal fees are not included in those levies. Buyers should seek the advice of a local attorney when purchasing property.

With respect to commercial, industrial, hotel and villa properties, the applicable rate of land tax is 0.65 percent on the improved value of the property.  Holders of a certificate from the Barbados Tourism Authority enjoy rebate of 50 percent for hotels and 25 percent for villas. The Commissioner of Land Tax charges an annual fee based on the assessed property value on residential property as follows:

• 0 percent on the first $75,000
• 0.10 percent on amounts between $75,001 and $225,000
• 0.70 percent on amounts between $225,000 and $425,000
• 1 percent on excess of $425,000
• 0.8 percent on vacant land under 4,000 sq. ft.
• 1.0 percent on vacant land over 4,000 sq. ft.

Barbados ranks 129 of 190 countries in ease of registering property in the 2019 World Bank Doing Business Report.  It takes approximately 105 days to complete six procedures and the cost is about 4 percent of the property value.

Intellectual Property Rights

Barbados has a good legislative framework governing intellectual property, but enforcement needs improvement.  Barbados signed the Paris Convention on Intellectual Property Rights (IPR), the Nice Agreement, and is a member of the United Nations World Intellectual Property Organization (WIPO).  The government of Barbados adopted a new Copyright Act in 1998 and amended it in 2004 to provide tougher penalties. In the early 2000s, Barbados also approved legislation covering integrated circuits topography, geographical indications, and protection against unfair competition.  In addition, Barbados revised its Trademark and Industrial Designs Acts to meet international standards.

Article 66 of the Revised Treaty of Chaguaramas (2001) establishing the CSME commits all 15 members to implement stronger intellectual property protection and enforcement.  The EPA signed between the CARIFORUM states and the European Community contains the most detailed obligations regarding intellectual property in any trade agreement to which Barbados is a party.  The EPA provides for the protection and enforcement of intellectual property. Article 139 of the EPA requires parties to “ensure an adequate and effective implementation of the international treaties dealing with intellectual property to which they are parties and of the Agreement on Trade Related Aspects of Intellectual Property (TRIPS).”

Barbados was listed on the Office of the United States Trade Representative’s (USTR) Special 301 Report Watch List in 2019.  USTR cited an absence of commitment to enforcement of existing legislation. The country’s failure to accede to the WIPO Internet Treaties to protect works in both physical and online environments was also a factor in Barbados’ listing. USTR also cited continuing concerns about the refusal of Barbadian TV and radio broadcasters and cable and satellite operators to pay for public performances of music.  Barbados’ slow legal system, ineffective enforcement, and lack of reform also contributed to its inclusion on the Watch List.

It is the responsibility of the importer to pay for and destroy counterfeit goods.  Failure to observe certain standards regarding the importation of goods may result in a recommendation to the Comptroller of Barbados’ Customs and Excise Department to have the goods destroyed.  If the goods fall under Ministry of Health jurisdiction, they are destroyed under that ministry’s guidance. If the goods are prohibited and do not pertain to the Ministry of Health, the Customs and Excise Department will destroy them as appropriate. Information on the prevalence of counterfeit goods in the local market is not readily available, as there is no tracking method in place to collect data.

For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/  .

Capital Markets and Portfolio Investment

Barbados has a small stock exchange, an active banking sector, and opportunities for portfolio investment.  Local policies seek to facilitate the free flow of financial resources with the exception of periods of low liquidity.  Historically, the CBB independently raised or lowered interest rates without government intervention. There are a variety of credit instruments in the commercial and public sectors that local and foreign investors may access.

Barbados continues to review legislation in the financial sector to strengthen and improve the regulatory regime and attract and facilitate retention of foreign portfolio investments.  The government continues to improve its legal, regulatory, and supervisory frameworks to strengthen the banking system. The Anti-Money Laundering Authority and its operating arm, the government’s Financial Intelligence Unit, review anti-money laundering policy documents and analyze prudential returns.

The Securities Exchange Act of 1982 established the Securities Exchange of Barbados, which was reincorporated as the Barbados Stock Exchange (BSE) in 2001.  The BSE operates a two-tier electronic trading system comprised of a regular market and a junior market. Companies applying for listing on the regular market must observe and comply with certain requirements.  Specifically, they must have assets of not less than $500,000 and adequate working capital, based on the last three years of their financial performance, as well as three-year performance projections. Companies must also demonstrate competent management and be incorporated under the laws of Barbados or another regulated jurisdiction approved by the Financial Services Commission.  Applications for listing on the junior market are less onerous, requiring minimum equity of one million shares at a stated minimum value of $100,000. Reporting and disclosure requirements for all listed companies include interim financial statements and an annual report and questionnaire. Non-nationals must obtain exchange control approval from the CBB to trade securities on the BSE.

The BSE publicized its intent to fully immobilize traditional share certificates and to computerize clearance and settlement through the Barbados Central Securities Depository Inc., a wholly owned subsidiary of the BSE.  The Financial Services Commission, under the Property Transfer Tax Act, can accommodate investors requiring a traditional certificate for a small fee. The Financial Services Commission also regulates mutual funds in accordance with the Mutual Funds Act.

The BSE adheres to rules in accordance with International Organization of Securities Commissions guidelines designed to protect investors, ensure a fair, efficient, and transparent market, and reduce systemic risk.  Public companies must file audited financial statements with the BSE no later than 90 days after the close of their financial year. The authorities may impose a fine not exceeding $5,000 for any person under the jurisdiction of the BSE who contravenes or is not in compliance with any regulatory requirements.

The BSE launched the International Securities Market (ISM) in 2016.  It is designed to operate as a separate market, allowing issuers from Barbados and other international markets.  The ISM is founded on a strong regulatory framework. To date, the ISM has five listing sponsors.

The BSE collaborates with its regional partners, the Jamaica Stock Exchange and the Trinidad and Tobago Stock Exchange, through shared trading software.  The capacity for this inter-exchange connectivity provides a wealth of potential investment opportunities for local and regional investors. The BSE obtained designated recognized stock exchange status from the UK in 2019.

Barbados has accepted the obligations of Article VIII, Sections 2, 3, and 4 of the IMF Articles of Agreement and maintains an exchange system free of restrictions on current account transactions.

Money and Banking System

The government established the Central Bank of Barbados in 1972. The CBB manages Barbados’ currency and regulates its domestic banks.

The Barbados Deposit Insurance Corporation (BDIC) provides protection for depositors.  Oversight of the entire financial system is conducted by the Financial Oversight Management Committee, which consists of the CBB, the BDIC, and the FSC.  The private sector has access to financing on the local market through short-term borrowing and credit, asset-financing, project financing, and mortgage financing.

Commercial banks and other deposit-taking institutions set their own interest rates.  The CBB requires banks to hold 17.5 per cent of their domestic deposits in stipulated securities.

Bitt, a Barbadian company, introduced a blockchain-based electronic mobile wallet for consumers.  Advocates of the technology praise this digital e-commerce solution for being less expensive to use and more secure and traceable than cash.  Bitt offers a digital asset exchange, remittance channel, and merchant-processing gateway available via a mobile application. The CBB and the FSC established a Regulatory Sandbox in 2018 where financial technology entities can do live testing of their products and services.  This allows regulators to gain a better understanding of the product or service and to determine what, if any, regulation is necessary to protect consumers.

International banks domiciled in the United States, Canada and Europe are reviewing their correspondent banking relationships in regions they deem high-risk for financial services.  The Caribbean region has witnessed a withdrawal of correspondent banking services by U.S. and European banks. CARICOM remains committed to engaging with key stakeholders on the issue.

Foreign Exchange and Remittances

Foreign Exchange

Barbados’ currency of exchange is the Barbadian dollar (BBD).  It is issued by the CBB. Barbados’ foreign exchange operates under a liberal system.  The Barbadian dollar has been pegged to the United States dollar at a rate of BBD 2.00: USD 1.00 since 1975.  This creates a stable currency environment for trade and investment in Barbados.

Remittance Policies

Companies can freely repatriate profits and capital from foreign direct investment if they are registered with the CBB at the time of investment.  The CBB has the right to stagger these conversions depending on the level of international reserves available to the CBB at the time capital repatriation is requested.

The Ministry of Finance and Economic Affairs controls the flow of foreign exchange and the Exchange Control Division of the CBB executes foreign exchange policy under the Exchange Control Act.  Individuals may apply through a local bank to convert the equivalent of $10,000 per year (effective July 1, 2019) for personal travel and up to a maximum of $25,000 for business travel. The CBB must approve conversion of any amount over these limits.  International businesses, including insurance companies, are exempt from these exchange control regulations.

Barbados is a member of the CFATF.  In 2014, the government of Barbados signed an Intergovernmental Agreement in observance of FATCA, making it mandatory for banks in Barbados to report the banking information of U.S. citizens.

Sovereign Wealth Funds

The CBB does not maintain a sovereign wealth fund.

The private sector is involved in projects that benefit society, including in support of environmental, social, and cultural causes.  Individuals benefit from business-sponsored initiatives when local and foreign-owned enterprises volunteer and make monetary or in-kind donations to local causes.

The non-governmental organization (NGO) community, while comparatively small, is involved in fundraising and volunteerism in gender, health, environmental, and community projects.  The government at times partners with NGOs and encourages philanthropy.

The law provides criminal penalties for official corruption, and the government generally implemented these laws effectively. Barbados signed but did not yet ratify the United Nations Convention on Corruption and the Inter-American Convention against Corruption.

In 2012, Barbados enacted the Prevention of Corruption Act (2010), which includes standards of integrity in public life.  The Integrity in Public Life Bill 2018 is pending in parliament. This Bill seeks to establish an integrity commission, to promote the integrity of government officials, and strengthen measures for the prevention, detection, investigation, and prosecution of acts of corruption.

Barbados is a member of the regional Association of Integrity Commissions and Anti-Corruption Bodies in the Commonwealth Caribbean.

Resources to Report Corruption

The Director, Financial Intelligence Unit
P.O. Box 1372, Bridgetown
246-436-4734
Email: fiu@barbadosfiu.gov.bb

The Chairman, Anti-Money Laundering Authority
P.O. Box 1372, Bridgetown
246-436-4734
Email: amla@sunbeach.net

Barbados does not have a recent history of politically motivated violence or civil unrest.

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy

* Source for Host Country Data: Central Bank of Barbados (CBB) hhttp://data.centralbank.org.bb/GeneralStatistics.aspx   . All CBB GDP figures for 2018 are estimates.

Table 3: Sources and Destination of FDI

Data not available; Barbados does not appear in the IMF’s Coordinated Direct Investment Survey.

Table 4: Sources of Portfolio Investment

Data not available; Barbados does not appear in the IMF’s Coordinated Portfolio Investment Survey for Sources of Portfolio Investment.

Policies Towards Foreign Direct Investment

While the Government of Belize is interested in attracting foreign direct investment, certain regulatory requirements serve to impede growth and transparency.  There are no laws that explicitly discriminate against foreign investors. In practice, however, investors complain that they do not always receive the full extent of the incentives available, that land titles are not always secure, and that bureaucratic delays or corruption can hinder starting a business in Belize.

According to the International Monetary Fund (IMF), improving the business climate, reducing crime and facilitating access to credit would increase growth by one percentage point on a yearly basis.  They also note that lowering the debt burden and greater climate resilience would support growth by another percentage point per year.

The Belize Trade and Investment Development Service (BELTRAIDE; www.belizeinvest.org.bz  ), a statutory body, is the investment and export promotion agency.  It promotes FDI through various types of incentive packages and identified priority sectors for investment as agriculture, agro-processing, fisheries and aquaculture, logistics and light manufacturing, tourism and tourism-related industries, offshore outsourcing (BPOs), and sustainable energy.

The Government created the Economic Development Council to increase the national dialogue on private sector development and better inform policies for growth and development.  The Cabinet has also created a Sub–Committee on Investment composed of Ministers whose portfolios are directly involved in considering and approving investment proposals.

Limits on Foreign Control and Right to Private Ownership and Establishment

Generally, Belize has no restrictions on foreign ownership and control of companies; however, foreign investments must be registered at the Central Bank of Belize.  In addition, foreigners need to apply with a Belizean partner or someone with a permanent residence to register a business name.

Some investment incentives show preference to Belizean-owned companies.  For example, to qualify for a tour operator license, a business must be majority owned by Belizeans or permanent residents of Belize (http://www.belizetourismboard.org  ).  This qualification is negotiable particularly where a tour operation would expand into a new sector of the market and does not result in competition with local operators.

Foreign investments must be registered and obtain an “Approved Status” from the Central Bank in order to facilitate inflows and outflows of foreign currency.  “Approved Status” investments will ordinarily be granted approval for repatriation of funds from profits, dividends, loan payments and interest. The Central Bank also reserves the right to request evidence-supporting applications for repatriation.

Additionally, persons seeking to open a bank account must also comply with Central Bank regulations.  These may differ based on residency status and whether the individual is seeking to establish a local or foreign currency account.

The Government’s Cabinet Sub-Committee on Investment considers investment projects which do not fall within Belize’s incentive regime or which may require special considerations.  For example, an investment may require legislative changes, a customized memorandum of understanding or agreement from the government, or a public–private partnership. Proposals are generally assessed based on size, scope, and the incentives requested.  In addition, proposals are assessed on a five-point system that analyses socio-economic acceptability of the project, revenues to the government, employment, foreign exchange earnings and environmental considerations. The Cabinet Sub-Committee is composed of five Cabinet Minsiters, including the minister with responsibility for Investment, Trade and Commerce as Chairperson.  The other members include the ministers with responsibility for Tourism and Culture; the Environment and Sustainable Development; and Natural Resources and Immigration, along with the Attorney General. There is no set timeframe for considering projects as it largely depends on the nature and complexity of the project.

When considering investment, foreign investors undertaking large capital investments must be aware of environmental laws and regulations.  There is a requirement to prepare an Environmental Impact Assessment (EIA) when a project meets certain land area, location, and/or industry criteria.  When purchasing land or planning to develop in or near an ecologically sensitive zone, it is recommended that the EIA fully address any measures by the investor to mitigate environmental risks.  Environmental clearance must be obtained prior to the start of site development. The Department of Environment website, http://www.doe.gov.bz   has more information on the Environmental Protection Act and other regulations, applications and guidelines.

Other Investment Policy Reviews

In the past three years, there has been no investment policy review of Belize by the Organization for Economic Cooperation and Development (OECD) or the United Nations Conference on Trade and Development (UNCTAD).  Belize concluded its third Trade Policy Review in the World Trade Organization (WTO) in April 2017.

Business Facilitation

Belize does not operate a single window registration process.  BELTRAIDE (http://www.belizeinvest.org.bz), a statutory body of the Government of Belize, operates as the country’s investment and export promotion agency.  Its investment facilitation services are open to all investors. While there are support measures to advance greater inclusion of women and minorities in entrepreneurial initiatives and training, the business facilitation measures do not distinguish by gender or economic status.

The Belize Companies Corporate Affairs Registry (tel: (501) 822 0421; email: belizecompaniesregistry@yahoo.com; website: www.belizecompaniesregistry.gov.bz) is responsible for the registration process of all local business and companies.

Businesses must register with the tax department to pay business and general sales tax. They must also register with their local city council or town board to obtain a trade license to operate a business.  An employer should also register employees for social security. The 2019 Doing Business report (http://www.doingbusiness.org   ) estimates it takes on average 43 days to start up a company in Belize.  The same report ranks Belize at 162 of 190 economies on the ease of starting a business.

Outward Investment

The government does not promote or incentivize outward investments.  Domestic investors are not restricted from investing abroad. However, the Central Bank places currency controls that limit foreign currency outflows unless given prior approval.

Belize has Bilateral Investment Treaties with Austria, Cuba, El Salvador, Italy, the Netherlands, Taiwan, United Arab Emirates, and the United Kingdom.  It also has a Partial Scope Agreement (PSA) with Guatemala on a small number of goods.

The country does not have a bilateral investment treaty nor is it a party to a Free Trade Agreement with the United States.  It is a qualifying country under the U.S. Generalized System of Preference (GSP) as well as the U.S.-Caribbean Basin Trade Partnership Act (CBTPA).  For additional information on Belize’s Bilateral Investment Treaties, see http://www.sice.oas.org  

Taxation Treaties

Belize has signed nineteen Tax Information Exchange Agreements (TIEA) with Australia, Belgium, Czech Republic, Denmark, Faroe Islands, Finland, France, Greenland, Iceland, India, Ireland, Netherlands, Norway, Poland, Portugal, South Africa, Sweden, Switzerland, and the United Kingdom.  Belize has no bilateral taxation treaties with the United States. See https://www.world.tax/countries/belize/belize-tax-treaties  .

Belize became the 86th jurisdiction to sign on to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) in January 2019.  See https://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-beps.htm  

Transparency of the Regulatory System

Regulatory authority exists both at the local and national levels with national laws and regulations being most relevant to foreign businesses.  Despite these measures, some investors complain that the regime for incentives did not always meet their needs, that land titles are not always reliable and secure, and that bureaucratic delays or corruption can be hindrances to doing business in Belize.

There are quasi-governmental organizations mandated by law to manage specified regulatory processes on behalf of the Government of Belize, e.g. the Belize Tourism Board, BELTRAIDE, and the Belize Agricultural Health Authority.  There are no reports that these processes significantly distort or discriminate against foreign investors.

The cabinet dictates government policies that are enacted by the legislature and implemented by the various government ministries.  Regulations exist at the local level, primarily relating to property taxes and registering for trade licenses to operate businesses in the municipality.

Accounting, legal, and regulatory systems are consistent with international norms. Publicly owned companies are generally audited annually and the reports are prepared in accordance with International Financial Reporting Standards and International Standards on Auditing.

The mechanism for drafting bills, regulations and enacting legislation generally apply across the board and apply to investment laws and regulations.  The government publishes in the Gazette, proposed as well as enacted laws and regulations that are publicly available for a minimal fee.

Draft bills are generally open to public comment.  Once introduced in the House of Representatives, they are sent to Standing Committees of the House of Representatives, which then meet and invite the public and interested persons to review, recommend changes, or object to draft laws prior to further debate.  Public comments on draft legislation are not generally posted online nor made publicly available. It would be the prerogative of an interested party to attend public consultations, committee meetings, or to request the public comments from the National Assembly or relevant Ministry.  Additionally, laws are sometimes passed quickly without meaningful publication, public review or public debate; as was the case with the Central Bank of Belize (International Immunities Act) and the Crown Proceedings (Amendment Act) of 2017.

Government ministries also make available policies, laws, and regulations pertinent to their portfolio available on their respective ministry websites.  Since 2016, enacted laws have been published on the website of the National Assembly. There is however, a delay in updating the website.

Regulations and enforcement actions are appealable with regulatory decisions subject to judicial review.  There have been no regulatory systems including enforcement reforms announced in the last year.

Information on the public finance, the government’s budget and debt obligations (including explicit and contingent liabilities) are widely accessible to the general public, with most documents available online.

International Regulatory Considerations

As a full member of the Caribbean Community (CARICOM), Belize’s foreign, economic and trade policies vis-a-vis non-members are coordinated regionally.  The country’s import tariffs are largely defined by CARICOM’s Common External Tariff.

Belize is also a member of several other treaties because of its CARICOM membership.  A primary example is the Economic Partnership Agreement (EPA) between CARIFORUM and the European Union (EU).  In the wake of Brexit, these countries also signed a CARIFORUM – United Kingdom Economic Partnership Agreement in March 2019.  The latter agreement is expected to come into effect by January 2021or soon after the UK leaves the EU.

Outside of CARICOM, Belize is a member of the Central American Integration System (SICA) at a political level, but is not a part of the Secretariat of Central American Economic Integration (SIECA) that supports economic integration of Central America.

Belize is also a member of the WTO and adheres to the organization’s agreements and reporting system.  The Belize Bureau of Standards (BBS) is the national standards body responsible for preparing, promoting and implementing standards for goods, services, and processes.  The BBS operates in in accordance with the WTO Agreement on Technical Barriers to Trade and the CARICOM Regional Organization for Standards and Quality. The BBS is also a member of the International Electrotechnical Commission (IEC), the International Organization for Standardization (ISO), and Codex Alimentarius.

Legal System and Judicial Independence

The Belize Constitution, is the supreme law and is founded on the principle of separation of powers with independence of the judiciary from the executive and legislative branches of government.  As a former British colony, Belize follows the English Common Law legal system, which is based on established case law. Belize has a written Contract Act, supported by precedents from the national courts as well as from the wider English speaking and Commonwealth case law.  Contracts are enforced through the courts.

General information relating to Belize’s judicial and legal system, including links to Belize’s Constitution, Laws and judicial decisions are available at the Judiciary of Belize website www.belizejudiciary.org  .  There are specialized courts that deal with family related matters including divorce and child custody, but no specialized courts to deal with commercial disputes or cases.

The current judicial process continues to face challenges including frequent adjournments, delays, and a backlog of cases.  Several measures are being implemented to improve the country’s judiciary. The training of mediators and the introduction of court-connected mediation support alternative methods to dispute settlement.  This effort along with better case management procedures is expected to decrease the court’s caseload, time delays, and cost particularly for smaller claim civil cases.

Regulations and enforcement actions are appealable.  Regulatory decisions are also subject to judicial review.  Judgments by the Belize Supreme Court and the Court of Appeal are available at http://www.belizejudiciary.org  .  In 2010, Belize adopted the Caribbean Court of Justice (CCJ) as its final appellate court on civil and criminal matters, replacing the Judicial Committee of the Privy Council of the United Kingdom.  Judgments by the Caribbean Court of Justice, are available at http://www.caribbeancourtofjustice.org  .

Laws and Regulations on Foreign Direct Investment

The country has an English Common Law legal system supplemented by local legislation and regulations.  Enacted laws are generally available in the National Assembly’s website at www.nationalassembly.gov.bz  .  Examples of key legislation passed in 2018 include:

• Designated Processing Areas Act, 2018
• Income and Business Tax (Amendment) Act, 2018
• Stamp Duties (Amendment) Act, 2018
• International Business Companies (Amendment) Act, 2018
• Bill of Sales (Amendment) Act, 2018
• General Sales Tax (Amendment) Act, 2018
• Customs Excise Duties (Amendment), 2018
• International Financial Services Commission, 2018

The laws, rules, procedures, and reporting requirements related to investors differ depending on the nature of the investment.  BELTRAIDE provides advisory services for foreign investors relating to procedures for doing business in Belize and incentives available to qualifying investors.  Further information is available at the BELTRAIDE website: http://www.belizeinvest.org.bz  

Competition and Anti-Trust Laws

Belize does not have any laws governing competition, but there are attempts to limit outside competition in certain industries (such as food and agriculture) by levying high import duties.

Expropriation and Compensation

The Government has used the right of eminent domain in several cases to appropriate private property, including land belonging to foreign investors.  There were no new expropriation cases in 2018. However, there are allegations that several previous expropriations were done for personal or political gain.  Belizean law requires that the government assess and compensate according to fair market value. Such expropriation cases can take several years to settle and there are a few cases where compensation is still pending.  In the cases of expropriations, the claimants assert that the Government failed to adhere to agreements entered into by a previous administration.

The process to acquire land titles is open to abuse with numerous cases of land title manipulation involving foreigners and Belizeans.  The government continues efforts at improving the land title system and in addressing delays in processing land transactions.

Dispute Settlement

ICSID Convention and New York Convention

The Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) was extended to Belize by an act of the United Kingdom when Belize was a colony.  After independence, Belize did not ratify the Convention nor is it listed as a contracting state. Nevertheless, the Arbitration Act governs arbitration and expressly incorporates three international conventions into domestic law.  These conventions include the 1923 Geneva Protocol on Arbitration Clauses; the Convention on the Execution of Foreign Arbitral Awards; and the New York Convention. A 2013 Caribbean Court of Justice judgment also upheld the Arbitration Act giving effect to the New York Convention in domestic law.

Belize signed but has not ratified the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID convention).  For more information visit http://sice.oas.org/dispute/comarb/icsid/w_conv1.asp  

Investor-State Dispute Settlement

Belize is signatory to various investment agreements which make provisions for the settlement of investor-state disputes.  Belize is also a member of the CARICOM Single Market and Economy, as well as a party to two regional Economic Partnership Agreements (EPA): 1) between CARIFORUM and the EU; and 2) CARIFORUM and the United Kingdom.  These regional arrangements make provisions for the settlement of investor-state disputes.

Since Belize is not a party to any Bilateral Investment Treaty (BIT) or Free Trade Agreement (FTA) with the United States, investment disputes involving U.S. persons are taken either before the courts or before international arbitration panels.

Local courts are empowered to recognize and enforce foreign arbitral awards against the government but these are generally challenged up to the CCJ.  In January 2017, the Crown Proceedings (Amendment) Act and the Central Bank of Belize (International Immunities) Act were passed, which also affect the enforcement of foreign arbitral awards against the government.  Essentially, the Crown Proceedings Amendment Act provides that if a foreign judgment is entered against the government and later declared as “unlawful, void or otherwise invalid” by a court in Belize, the foreign judgement would not be enforced in or outside Belize.  The Act also provides for hefty penalties of fines and/or imprisonment on a person, individual or legal, seeking to enforce the foreign judgment. The Central Bank (International Immunities) Act restates the immunity of the Central Bank of Belize assets “from legal proceedings in other states.”  This Act similarly provides for penalties of fines and/or imprisonment on a person, individual or legal, which initiates any such proceedings. Despite these legislative acts, there has not been a history of extrajudicial actions against foreign investors.

Over the past decade, the Government of Belize has been involved in numerous investment disputes with one involving a U.S. company.  Most cases were initially entered in arbitration panels, but were eventually appealed either before the U.S. District Court of Colombia or the CCJ.  The majority of the judgements went against the Government, which has settled some and continues to settle other cases.

International Commercial Arbitration and Foreign Courts

Belize’s Arbitration Act allows the Supreme Court of Belize to support and supervise dispute settlement between private parties by arbitration.  In 2013, the Supreme Court also introduced the process of court-connected mediation as an alternative method to dispute settlement between private parties and as a means of reducing costs and duration of litigation.

Local courts are empowered to recognize and enforce foreign arbitral but these are generally challenged up to the CCJ, Belize’s highest appellate court.

There are numerous instances of cases involving State Owned Enterprises (SOEs) which went before domestic courts with rulings both in favor and against the SOE.

Bankruptcy Regulations

Chapter 244 of the Laws of Belize (Bankruptcy Act) provides and allows for bankruptcy filings. The Act provides for the establishment of receivership, trustees, adjudication and seizures of the property of the bankrupt.  The court may order the arrest of the debtor as well as the seizure of assets and documents in the event the debtor may flee or avoid payment to creditors. The Act also provides for imprisonment on conviction of certain specified offenses.  The Director of Public Prosecutions may also institute proceedings for offenses related to the bankruptcy proceedings.

Investment Incentives

The legal framework authorizing and providing for investment incentives include the Fiscal Incentives Act, the Designated Processing Areas Act, the Commercial Free Zone Act, the International Business Companies Act, the Retired Persons Incentives Act, the Trusts Act, the Offshore Banking Act, and the Gaming Control Act.

The Government of Belize enacted the Designated Processing Areas Act, 2018, which replaces the Export Processing Zone incentive program.  Additionally, legislative review of the Fiscal Incentives and the Commercial Free Zone programs continue. Investors seeking to take advantage of these programs should be aware of these developments when discussing investment concessions.

In exceptional circumstances, the current administration issues government guarantees from development institutions.  While government policies support public private partnership, there are not recent examples of joint financing of foreign direct investment projects.

Foreign Trade Zones/Free Ports/Trade Facilitation

The Designated Processing Areas Act (DPA) was passed in 2018 to replace the former Export Processing Zone Act.  While the program is being fully implemented, it remains a tool to attract local and foreign investments to boost production for export markets.  Approved companies under this program receive a DPA status for a period of up to ten years and may quality for various tax exemptions. These may include exemptions from Custom and Excise duties as well as from taxes on imported goods, namely the General Sales Tax, the Environmental Tax, and the Revenue Replacement Duties.  Similarly, property and land tax may be waived on the designated area. In addition, approved companies are given certain exemptions, including from the Trade Licensing Act requirements for operating in a municipality and the Supplies Control Act, in relation to the importation of raw materials for production that are not for sale in Belize.  Companies may maintain a foreign currency account in a domestic or international bank located in Belize as well as sell, lease, or transfer goods and services between DPA companies. While subject to the Income and Business Tax, businesses may qualify for a preferential tax rate on chargeable income. They may also be eligible for an annual quota for fuel solely for specified uses.

A Commercial Free Zone (CFZ) is a specifically designated area for the conduct of business operations, including for example, manufacturing, commercial offices, insurance services, banking and financial services, offshore financial services, professional or related services, processing, packaging, warehousing, and the distribution of goods and services.  Belize currently has two CFZs, one on the northern border with Mexico and a small zone on the western border with Guatemala. Goods originating from these free zones can only be sold into Belize’s national customs territory after the necessary duties and taxes have been assessed and paid. The Commercial Free Zone Management Agency (CFZMA) monitors and administers the free zones.  Incentives include exemptions from import duties, income tax, taxes on dividends, capital gains tax, or any new corporate tax levied by the Government during the first 10 years of operation. In addition, imports and exports of a CFZ are exempt from customs duties, consumption taxes, excise taxes, or in-transit taxes, except those destined for or directly entering areas subject to the national customs territory. Additionally, CFZ businesses incurring a net loss over the five-year tax holiday may deduct losses from profits in the three years following the tax holiday period.

Performance and Data Localization Requirements

The Fiscal Incentives Act awards a qualified entity a development concession during the start-up or expansion stages to foster growth by offsetting custom duties. According to BELTRAIDE (www.belizeinvest.org.bz   ), two programs are offered under this Act, the Regular Program for investments exceeding USD150,000 and the Small and Medium Enterprise (SME) program for investments of less than USD150,000.  In general, the legal framework allows for full Customs Duties exemptions and Tax Holidays for up to 15 years for approved enterprises. The length and extent of a development concession are determined by several factors, including: (a) the extent of local value added; (b) the projected profitability of the enterprise; (c) foreign exchange earnings or savings; (d) transfer of skills and technology; and (e) new employment opportunities.

The Fiscal Incentives SME Program is aimed at smaller enterprises with a minimum of 51 percent Belizean ownership. The SME Program offers the same benefits of the Regular Program, with the exception of the allowable timeframe for duty exemptions.  Under this program, companies are allowed a maximum of five years of development concessions, with the expectation that after this period, companies can mature into the Regular Program.

The International Business Companies (Amendment) Act was passed in December 2018 largely to satisfy OECD base erosion and profit sharing requirements (BEPS).  The main change is that IBCs are no longer ring-fenced, with both residents and non-residents allowed to take part in the regime and IBCs no longer restricted from carrying on business with residents.  Additionally, IBCs are now liable for both income tax and stamp duty and required to file annual returns. Another important change is that IBC companies must be conducted and controlled from Belize with least two resident directors.  Certain activities are now also excluded, including those related to banking, fund management, or insurance business. See http://www.ibcbelize.com   and www.ifsc.gov.bz   for more information.

The Qualified Retirement Program (QRP) was created to facilitate eligible persons who have met the income requirements to permanently live and retire in Belize.  The Belize Tourism Board overseas this program designed to benefit retired persons over 45 years of age. To qualify, applicants need proof of income not less than USD2,000 per month through a pension or annuity generated outside of Belize.  An approved QRP is allowed to import personal effects as well as approved means of transportation, free of customs duties and taxes. All income generated outside of Belize is also free of taxes. An approved QRP is given one year to import all personal and household effects into Belize, using multiple shipments as necessary.  Duty and tax-free importation of an automobile, light aircraft or boat is allowed, with vehicles allowed to be replaced every three years. Effects and items imported under this program can only be sold, given away, or leased after the appropriate payment of applicable duties and taxes. For more information, visit http://www.belizetourismboard.org  

Real Property

The Preamble of the Belize Constitution preserves the right of the individual to the ownership of private property and the right to operate private businesses.  Private entities, whether foreign or local, have the right to freely establish, acquire, and dispose of interests in property and business enterprises. Generally, the country has no restrictions on foreign ownership and control; however, foreign investments in Belize must be registered at the Central Bank of Belize.

Mortgages and liens do exist and related real estate would be recorded with the registry of the Lands and Survey Department.  There have been cases of land fraud, abuses, and corruption in the Lands and Survey Department. Investors are strongly advised to do their due diligence prior to purchasing property.

Foreign and/or non-resident investors are not allowed to acquire national lease property but may acquire titled privately owned property.  Central Bank regulations require real estate transactions between residents and non-residents to be in Belize dollars. Additionally, the rate of stamp duty chargeable on land transfers involving foreign persons or a foreign controlled company is eight percent for land transfers valued in excess of USD10,000.  The rate of such transactions involving Belizeans and CARICOM nationals, however, is five percent.

There are three different types of titles to freehold property in Belize: Deed of Conveyance, Transfer of Certificate of Title, and Land Certificate.  Leasehold property from the government is available to Belizeans who can then apply for conversion to a fee simple title. The government is in the process of re-registering all freehold lands to achieve a uniform system of nationwide land ownership.

Squatters’ rights are only enforceable by order of the Supreme Court after having proven uninterrupted possession for at least 30 years on National and Conveyed lands or at least 12 years on registered lands.

Intellectual Property Rights

Belize is a party to the WTO and has implemented the Agreement on Trade-Related Aspects of Intellectual Property (TRIPS).  Generally, Intellectual Property Rights (IPR) must be registered and enforced in Belize. IPR protections are enforceable through civil proceedings initiated by the IPR right holder.  BELIPO (http://belipo.bz  ) was established to administer IPR laws and functions as the country’s national intellectual property registry.  Its mandate covers the protection of copyrights, industrial designs, patents, trademarks, new plant varieties, and layout designs (topographies) of integrated circuits.

In practice, however, enforcement is largely non-existent.  Illegally copied CDs and DVDs are widespread and continue to be marketed throughout the country.  In an effort to halt IPR infringements, Home Box Office, Inc. (HBO) concluded negotiations with cable operators in March 2019, outlining the terms for local cable providers to legally access the company’s entertainment content.

During the last year, Belize acceded to six major Intellectual Property treaties that will provide enhanced protection to copyright owners, with added impact on live performers, music producers and broadcasters.  Five treaties are copyright-related and include:

• The International Convention for the Protection of Performers, Producers of Phonograms & Broadcasting Organizations (“Rome Convention”);
• The WIPO Copyright Treaty (“WCT”);
• The WIPO Performances & Phonograms Treaty (“WPPT”);
• The Beijing Treaty on Audiovisual Performances (“Beijing Treaty”); and
• The Marrakesh Treaty to Facilitate Access to Published Works for Persons who are Blind, Visually Disabled or Otherwise Print Disabled (“Marrakesh Treaty”)

The sixth treaty, the Geneva (1999) Act of the Hague Agreement concerning the International Registration of Industrial Designs, allows applications for industrial design protection to be filed into an international database.

While the Customs Department of Belize does track seizures of counterfeit goods, it does not properly document IPR and contraband seizures.

Belize is not listed in the 2018 USTR’s Special 301 report nor the 2018 notorious market report.

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en  

Capital Markets and Portfolio Investment

Belize’s financial system is small with limited to non-existent foreign portfolio investment transactions. It does not have its own stock market and capital market operations are rudimentary.  Private sector participation as both suppliers and buyers of securities in the financial market is generally not significant.

Foreign investments must be registered at the Central Bank, but the government does not restrict payments for international transactions.  Additionally, credit is made available on market terms with interest rates largely set by local market conditions prevailing within the commercial banks.

The Development Finance Corporation (DFC), a state owned development bank, offers loan financing services in various sectors. To qualify for a loan from DFC, an individual must be a Belizean resident or citizen, while a company must be majority 51 percent Belizean owned.  The National Bank of Belize is a state owned bank that provides concessionary credit primarily to public officers, teachers, and low income Belizeans.

Money and Banking System

The Central Bank of Belize (CBB) (https://www.centralbank.org.bz) is responsible for formulating and implementing monetary policy focusing on the stability of the exchange rate and economic growth.  Belize’s financial system remains underdeveloped with a banking sector may be characterized as stable but fragile.

Non-performing loans stood at 2.7 percent of total loans at the end of 2018, significantly below the 5.0 percent threshold.  Additionally, the aggregate capital adequacy ratio of domestic banks improved to 24.6 percent, well above the 9.0 percent regulatory requirement. The CBB also registered a new credit union, which commenced operations in August 2018.  In the international banking sector, the Central Bank revoked the license of one bank in June 2018 and another requested support in March 2019 to wind up voluntarily. 

Persons seeking to open a bank account must comply with Central Bank regulations, which differ based on residency status and whether the individual is seeking to establish a local bank account or a foreign currency account.  Like many countries with fixed currency rates, the Belize banking sector is split into two branches: onshore (domestic banks that cater only to residents) and offshore (international banks intended for non-residents of Belize to freely move foreign exchange in and out of the country).  The Government asserts this design is to prevent disruptions of the local economy, to maintain the peg to the US dollar and avoid large foreign exchange fluctuations.

Foreign banks and branches are allowed to operate in the country with all banks subject to Central Bank measures and regulations.  While all banks have current correspondent banking relations, there is still uncertainty with regard to the longevity of those relationships, delay in transactions, and fewer services offered at higher costs.

In the last few years, Belize has enacted a number of reforms to strengthen the anti-money laundering and counterterrorism-financing regime, including amendments to the Money Laundering and Terrorism (Prevention) Amendment Act and the International Business Companies (Amendment) Act.  In addition, the National Anti-Money Laundering Committee (NAMLC) is headed by the Financial Intelligence Unit with inter-agency support from key financial and law enforcement authorities.

Foreign Exchange and Remittances

Foreign Exchange

There are currency controls in Belize and foreign investors seeking to convert, transfer, or repatriate funds must comply with Central Bank regulations.  Foreign investments must be registered at the Central Bank to facilitate inflows and outflows of foreign currency transactions. Foreign investors must register their inflow of funds to obtain an “Approved Status” for their investment and generally are approved for repatriation of funds thereafter.  The Central Bank does, however, reserve the right to request evidence supporting applications for repatriation.

The Belize dollar has been pegged to the United States Dollar since May 1976 at a fixed exchange rate of BZ USD2.00 to the USD1.00.  There are reports of shortages and delays in obtaining foreign exchange.

Remittance Policies

There are no changes to investment remittance policies.  As mentioned above, foreign investors should obtain an “Approved Status” for their investment and register their inflow and outflow of funds with the Central Bank.

Sovereign Wealth Funds

Belize does not have a sovereign wealth fund.

Belize generally lacks general awareness of the expectations and standards for responsible business conduct (RBC).  However, many foreign and local companies engage in responsible corporate behaviors, particularly from a social perspective.  Companies sponsor, inter alia, educational scholarships, sports related activities, community enhancement projects, or entrepreneurship activities.  There are no formal government measures or policies to promote RBC.

Several civil society agencies seek to protect individuals and address human rights, labor rights, consumer protection, and environmental concerns.  For example, the Office of the Ombudsman is responsible for investigating complaints of official corruption and abuse of power. As required by law, the Ombudsman is active in filing annual reports to the National Assembly and investigating incidents of alleged misconduct, particularly of police abuses.   This Office continues to be constrained by the lack of enforcement powers, political pressure, and limited resources.

In the area of environment, certain projects require the Department of the Environment’s approval for Environmental Impact Assessments or Environmental Compliance Plans. The Department of Environment website, http://www.doe.gov.bz  , has more information on the Environmental Protection Act, various regulations, applications and guidelines.

There are no government measures relating to corporate governance, accounting, and executive compensation standards and RBC policies are not factored into procurement decisions.

There have been no recent cases of private sector impact on human rights and no NGOs, investment funds, worker organizations/unions, or business associations specifically promoting or monitoring RBC.  In recent years, labor unions and business associations have become actively engaged in advocating for stronger measures against corruption.

Belize does not have a highly developed mineral sector and is not a conflict or high-risk country.  As such, it does not adhere to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Afflicted and High-Risk Areas.  Belize’s extractive/mining industry is not highly developed and it does not participate in the Extractive Industries Transparency Initiative (EITI) and/or the Voluntary Principles on Security and Human Rights.

Belize has anti-corruption laws that are seldom enforced.  Under the Prevention of Corruption in Public Life Act, public officials are required to make annual financial disclosures.  The Act also criminalizes acts of corruption by public officials and includes measures on the use of office for private gain, code of conduct breaches, the use of public funds, and bribery.  Section 24 of the Act covers punishment for breach, which may include a fine of up to USD5,000, severe reprimand, forfeiture of property acquired by corruption, and removal from office. This Act also established an Integrity Commission mandated to monitor, prevent, and combat corruption by examining declarations of physical assets and financial positions filed by public officers.  The Commission is able to investigate allegations of corrupt activities, including by members of the National Assembly, Mayors and Councilors of all cities, and Town Boards. In 2018, a new chair was appointed to the Commission and published 42 names of persons in public life in accordance with the Act.

The Money Laundering and Terrorism (Prevention) Act identifies “politically exposed persons” to include family members or close associates of the politically exposed person.  The policies and procedures for government procurement are outlined in Belize Stores Orders and Financial Orders issued by the Ministry of Finance. There is a Manual for the Control of Public Finances that provides the framework for the registration and use of public funds to procure goods and services.

Despite these legislative and regulatory measures, many businesspeople complain that both major political parties can and do practice partisanship bias that affects businesses in terms of receiving needed licenses, winning government contracts for procurement of goods and services, and the granting of government land to private owners.  Some middle-class citizens and business owners throughout the country have complained of government officials, including police and others, soliciting bribes. Additionally, there are allegations of prominent members from the two main political parties engaging in corrupt practices to acquire land. A Select Senate Committee on Immigration deliberated for most of 2017 on such allegations.  It concluded its inquiry in December 2017, but has yet to publish its findings.

Private companies are not required to establish internal codes of conduct.  There are few non-governmental institutions that monitor government activities; two of them are Citizens Organized for Liberty through Action (COLA) and the National Trade Union Congress of Belize (NTUCB).  The first is comprised of concerned private citizens; the latter is an umbrella organization comprised of the various Belizean workers’ unions. Environmental NGOs and the Belize Chamber of Commerce and Industry often make statements regarding government policy as it affects their respective spheres of activity.

Private companies do not use internal controls, ethics or compliance programs to detect and prevent bribery of government officials.

In June 2001, the Government of Belize signed the Organization of American States (OAS) Inter-American Convention on Corruption, which undergoes periodic review as provided for under the Convention.

In December 2016, Belize acceded to the United Nations Convention Against Corruption (UNCAC) amid public pressure and demonstrations from the teachers’ unions but full implementation remains ongoing.

Bribery is officially considered a criminal act in Belize, but laws against bribery are rarely enforced.  There are complaints of government corruption particularly related to customs, land, and immigration transactions.

Resources to Report Corruption

Contact for the government agency or agencies responsible for combating corruption:

Office of the Ombudsman
91 Freetown Road
Belize City, Belize
T: +501-223-3594
E: ombudsman@btl.net
W: www.ombudsman.gov.bz  

For specific complaints within the police force:

Professional Standards Branch
1902 Constitutions Drive
Belmopan, Belize
T: +501-822-2218 or 822-2674

Belize has traditionally enjoyed one of the most stable political environments in the region, having held peaceful and transparent democratic elections since independence on September 21, 1981.  In general elections, the two major political parties generally trade leadership but the current United Democratic Party has held on to power since 2008 spanning three consecutive elections. At the municipal level, elections were held in March 2018 and while the opposition People’s United Party gained ground, the ruling United Democratic Party maintained its majority in six of the nine municipalities.

Incidents including damage to projects or installations affecting investments in Belize are rare.  In November 2014, the Belize Sugar Cane Farmers Association (BSCFA) and American Sugar Refineries (ASR) failed to reach a contract agreement before the harvesting season.  While the dispute was eventually resolved, there were some reports of fields being burned and farmers being threatened for breaking ranks with BSCFA.

There is political insecurity because of neighboring Guatemala’s territorial claim on Belize that has existed for almost two centuries.  In 2008, both countries signed a special agreement, with the facilitation of the OAS, on a process to present the matter to the International Court of Justice (ICJ).  After simultaneous referenda failed to materialize in 2013, Guatemala voted to take the matter to the ICJ in April 2018. Belize was scheduled to hold its referendum in April 2019, but the process is delayed by a legal challenge.  Despite efforts to increase confidence building measures between the two countries, there continue to be incursions by Guatemalan citizens along bordering areas resulting in deforestation, illegal logging and extraction of exotic hardwoods, illegal harvesting of xate palm leaves (a decorative plant used in flower arrangements), panning for gold, wildlife poaching, and agriculture development.  These activities have resulted in confrontations between Guatemalan nationals and Belize law enforcement authorities on Belizean territory. Tensions have also flared along the Sarstoon River, which forms the disputed southern border. Guatemala has increased its naval presence in the area and detained or questioned Belizean citizens wishing to navigate the river.

There are also security concerns related to the high level of crime, which are mainly gang related or random targets against innocent civilians and tourists.  Turf and gang related crimes are often concentrated in south side Belize City.

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy

* Source for Host Country Data: Statistical Institute of Belize, Central Bank of Belize

Table 3: Sources and Destination of FDI

Statistics on foreign direct investments in Belize by country of origin is limited, including the total invested by U.S. investors.  The Central Bank of Belize recorded total inflows of FDI at USD152.48 million in 2018 and outflows at USD32.933 million in the same period.  Major sources of FDI include the United States, Canada and the United Kingdom. FDI inflows are traditionally concentrated primarily in real estate, construction, reinvested earnings and the agriculture sectors.

Table 4: Sources of Portfolio Investment

Data not available.

Policies Towards Foreign Direct Investment

The government of Dominica strongly encourages foreign direct investment (FDI), particularly in industries that create jobs, earn foreign currency, and have a positive impact on local citizens.

Through the Invest Dominica Authority (IDA), the government instituted a number of investment incentives for businesses considering the possibility of locating in Dominica.  Government policies provide liberal tax holidays, duty-free import of equipment and materials, exemption from value added tax on some capital investments, and withholding tax exemptions on dividends, interest payments, and some external payments and income.

The government has prioritized investment in certain sectors, such as hotel accommodation, including eco-lodges and boutique hotels, nature and adventure tourism services, marina and yachting sector development, fine dining restaurants, information and technology services, particularly business processing operations.  Other sectors include film, music, and video production, agro-processing, manufacturing, bulk water export and bottled water operations, medical and nursing schools, health and wellness tourism, geothermal and biomass industries, biodiversity, aquaculture, and English language training services. The government has signaled that it is also willing to consider additional sectors.

Limits on Foreign Control and Right to Private Ownership and Establishment

There are no limits on foreign control in Dominica.  Foreign investment in Dominica is not subject to any restrictions, and foreign investors are entitled to receive the same treatment as nationals of Dominica.  Foreign investors are entitled to hold up to 100 percent of their investment. The only restriction is the requirement to obtain an Alien Landholders License for foreign investors seeking to purchase property for residential or commercial purposes.  Local enterprises generally welcome joint ventures with foreign investors in order to access technology, expertise, markets, and capital.

Other Investment Policy Reviews

The OECS, of which Dominica is a member, has not conducted a trade policy review in the last three years.

Business Facilitation

The IDA is Dominica’s main business facilitation unit.  It facilitates FDI into priority sectors and advises the government on the formation and implementation of policies and programs to attract investment in Dominica.  The IDA provides business support services and market intelligence to all investors. It offers an online tool useful for navigating laws, rules, procedures, and registration requirements for foreign investors.  It is available at http://www.investdominica.com/  .

All potential investors applying for government incentives must submit their proposals for review by the IDA to ensure the project is consistent with the national interest and provides economic benefits to the country.

The Companies and Intellectual Property Office (CIPO) maintains an e-filing portal for most of its services, including company registration on its website.  However, this only allows for the preliminary processing of applications prior to the investor physically making a payment at the Supreme Court office. Investors are advised to seek the advice of a local attorney prior to starting the process.  Further information is available at: http://www.cipo.gov.dm/   .

According to the World Bank’s Doing Business Report for 2019, Dominica ranks 69th out of 190 countries in the ease of starting a business.  It takes five procedures and about 12 days to complete the process. The general practice is to retain an attorney who prepares all the relevant incorporation documents.  A business must register with the CIPO, the Tax Authority, and the Social Services Institute.

The government of Dominica continues to support the growth of women–led businesses.  The government supports equitable treatment and support of women in the private sector through non-discriminatory processes for business registration, fiscal incentives, investment opportunities, and quality assessments.

Outward Investment

There is no restriction on domestic investors seeking to do business abroad.  Local companies in Dominica are actively encouraged to take advantage of export opportunities specifically related to the country’s membership in the OECS Economic Union and the Caribbean Community Single Market and Economy (CSME), which enhance the competitiveness of the local and regional private sectors across traditional and emerging high-potential markets.

Dominica has not signed a bilateral investment treaty with the United States.  Dominica has bilateral investment treaties with the UK and Germany. Dominica has bilateral tax treaties with the United States and the UK.  Dominica is also party to the following agreements:

Caribbean Community (CARICOM)

The Treaty of Chaguaramas established CARICOM in 1973 to promote economic integration among its fifteen member states.  Investors operating in Dominica have preferential access to the entire CARICOM market. The Revised Treaty of Chaguaramas established the CSME, which permits the free movement of goods, capital, and labor within CARICOM member states.

Organization of Eastern Caribbean States

The Revised Treaty of Basseterre established the OECS.  The OECS consists of seven full members: Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines, and four associate members: Anguilla, Martinique, Guadeloupe and the British Virgin Islands.  The OECS aims to promote harmonization among member states concerning foreign policy, defense and security, and economic affairs. The seven independent countries of the OECS ratified the Revised Treaty of Basseterre, establishing the OECS Economic Union in 2011.  The Economic Union established a single financial and economic space within which all factors of production, including goods, services, and people, move without hindrance.

Economic Partnership Agreement

The European Community and the CARIFORUM states signed an Economic Partnership Agreement (EPA) in 2008.  The overarching objectives of the EPA are to alleviate poverty in CARIFORUM states, to promote regional integration and economic cooperation, and to foster the gradual integration of the CARIFORUM states into the world economy by improving their trade capacity and creating an investment-conducive environment.  The EPA promotes trade-related developments in areas such as competition, intellectual property, public procurement, the environment, and protection of personal data.

Caribbean Basin Initiative

The objective of the Caribbean Basin Initiative (CBI) is to promote economic development through private sector initiatives in Central America and the Caribbean islands by expanding foreign and domestic investment in non-traditional sectors, diversifying CBI country economies, and expanding exports.  It permits duty-free entry of products manufactured or assembled in Dominica into the United States.

Caribbean/Canada Trade Agreement

The Caribbean/Canada Trade Agreement (CARIBCAN) is an economic and trade development assistance program for Commonwealth Caribbean countries in which Canada provides duty-free access to its national market for the majority of products originating in Commonwealth Caribbean countries.

Transparency of the Regulatory System

The government of Dominica provides a legal framework to foster competition and establish clear rules for foreign and domestic investors in the areas of tax, labor, environment, health, and safety.  The Ministry of Finance and the IDA provide oversight of the transparency of the system as it relates to investment.

Rule-making and regulatory authority lies with the unicameral parliament.  The parliament has 21 members elected for a five-year term in single-seat constituencies, nine appointed members, one Speaker, and one clerk.

Relevant ministries develop laws which are drafted by the Ministry of Justice, Immigration and National Security.  FDI is governed principally through the laws that oversee the IDA and the citizenship by investment (CBI) program. Laws are available online at http://www.dominica.gov.dm/laws-of-dominica  .

Although some draft bills are not subject to public consultation, the government generally solicits input from various stakeholder groups in the formulation of laws.  In some instances, the government convenes a special committee is convened to make recommendations on provisions outlined in the law. The government uses public awareness campaigns to sensitize the general population on legislative reforms.  Copies of proposed regulations are published in the official gazette just before the bills are taken to parliament.  Although Dominica does not have legislation guaranteeing access to information or freedom of expression, access to information is generally available in practice.  The government maintains a website and an information service on which it posts information such as directories of officials and a summary of laws and press releases.  The government budget and an audit of that budget are available on the website: http://www.opm.gov.dm  .

Accounting, legal, and regulatory procedures are generally transparent and consistent with international norms.  The International Financial Accounting Standards, which stem from the General Accepted Accounting Principles, govern the accounting profession in Dominica.

The Office of the Parliamentary Commissioner or Ombudsman guards against excesses by government officers in the performance of their duties.  The Ombudsman is responsible for investigating any complaint relating to any decision or act of any government officer or body in any case in which a member of the public claims to be aggrieved or appears to the Ombudsman to be the victim of injustice as a result of the exercise of the administrative function of that officer or body.

Dominica’s membership in regional organizations, particularly the OECS and its Economic Union, commits its members to implement all appropriate measures to ensure the fulfillment of its various treaty obligations.  For example, the Banking Act, which establishes a single banking space and the harmonization of banking regulations in the Economic Union, is uniformly in force in the eight member territories of the ECCU, although there are some minor differences in implementation from country to country.

The enforcement mechanisms of these regulations include penalties or legal sanctions.  The IDA can revoke an issued Investment Certificate if the holder fails to comply with certain stipulations detailed in the Act and its regulations.

International Regulatory Considerations

As a member of the OECS and the ECCU, Dominica subscribes to a set of principles and policies outlined in the Revised Treaty of Basseterre.  The relationship between national and regional systems is such that each participating member state is expected to coordinate and adopt, where possible, common national policies aimed at the progressive harmonization of relevant policies and systems across the region.  Thus, Dominica is obligated to implement regionally developed regulations, such as legislation passed under OECS authority, unless specific concessions are sought.

The Dominica Bureau of Standards develops, establishes, maintains, and promotes standards for improving industrial development, industrial efficiency, promoting the health and safety of consumers, protecting the environment, food and food products, and the facilitation of trade.  It also conducts national training and consultations in international standards practices. As a signatory to the World Trade Organization (WTO) Agreement on the Technical Barriers to Trade, Dominica, through the Dominica Bureau of Standards, is obligated to harmonize all national standards to international norms to avoid creating technical barriers to trade.

Dominica ratified the WTO Trade Facilitation Agreement (TFA) in 2016.  Ratification of the Agreement is an important signal to investors of the country’s commitment to improving its business environment for trade.  The TFA aims to improve the speed and efficiency of border procedures, facilitate trade costs reduction, and enhance participation in the global value chain.  Dominica has already implemented a number of TFA requirements. A full list is available at: https://www.tfadatabase.org/members/dominica/measure-breakdown   .

The Advanced Cargo Information System is a CARICOM project that seeks to improve the capability to track cargo efficiently.  Dominica is one of three regional pilot countries that have already enacted the enabling legislation. Dominica has fully implemented the Automated System for Customs Data.

Legal System and Judicial Independence

Dominica bases its legal system on British common law.  The Attorney General, the Chief Justice of the Eastern Caribbean Supreme Court, junior judges, and magistrates administer justice in the country.  The Eastern Caribbean Supreme Court Act establishes the Supreme Court of Judicature, which consists of the High Court and the Eastern Caribbean Court of Appeal.  The High Court hears criminal and civil matters and makes determinations on the interpretation of the Constitution. Parties may appeal to the Eastern Caribbean Supreme Court, an itinerant court that hears appeals from all OECS members.

The Caribbean Court of Justice (CCJ) is the regional judicial tribunal.  The CCJ has original jurisdiction to interpret and apply the Revised Treaty of Chaguaramas.  In 2015, Dominica acceded to the CCJ, making the CCJ its final court of appeal.

The United States and Dominica are both parties to the WTO.  The WTO Dispute Settlement Panel and Appellate Body resolve disputes over WTO agreements, while courts of appropriate jurisdiction in both countries resolve private disputes.

Laws and Regulations on Foreign Direct Investment

The main laws concerning investment in Dominica are the Invest Dominica Authority Act (2007), the Tourism Act (2005), and the Fiscal Incentives Act.  Regulatory amendments have been made to the Income Tax Act, the Value Added Tax Act, the Title by Registration Act, the Stamp Act, the Aliens Landholding Regulation Act, and the Residential Levy Act.

IDA reviews all proposals for investment concessions and incentives to ensure the project is consistent with the national interest and provides economic benefits to the country.  The Cabinet of Dominica makes the final decision on investment proposals.

The IDA provides “one-stop shop” facilitation services to investors to guide them through various stages of the investment process.  The IDA offers a website that is useful for navigating the laws, rules, procedures, and registration requirements for foreign investors: http://www.investdominica.com  .

Under Dominica’s Citizenship By Investment program, qualified foreign investors may obtain citizenship without voting rights.  Applicants can contribute a minimum of USD USD 100,000 to the Economic Diversification Fund for a single person or invest in designated real estate with a value of at least USD USD 200,000.  Applicants must also provide a full medical certificate, undergo a background check, and provide evidence of the source of funds before proceeding to the final stage of an interview. The government introduced a Citizen by Investment Certificate in order to minimize the risk of unlawful duplication.  Further information is available at: http://cbiu.gov.dm  .

Competition and Anti-Trust Laws

Chapter 8 of the Revised Treaty of Chaguaramas outlines the competition policy applicable to CARICOM States.  Member states are required to establish and maintain a national competition authority for implementing the rules of competition.  CARICOM established a Caribbean Competition Commission to apply rules of competition regarding anti-competitive cross-border business conduct.  CARICOM competition policy addresses anti-competitive business conduct such as agreements between enterprises, decisions by associations of enterprises, and concerted practices by enterprises that have as their object or effect the prevention, restriction, or distortion of competition within CARICOM, and actions by which an enterprise abuses its dominant position within CARICOM.  Dominica does not have domestic legislation to regulate competition. The OECS agreed to establish a regional competition body to handle competition matters within its single market. The draft OECS bill is with the Ministry of Justice, Immigration and Security for review.

Expropriation and Compensation

There are no known pending expropriation cases involving American citizens.  In such an event, Dominica would employ a system of eminent domain to pay compensation when property must be acquired in the public interest.  There were no reported tendencies of the government to discriminate against U.S. investments, companies, or landholdings. There are no laws mandating local ownership in specified sectors.

Dispute Settlement

ICSID Convention and New York Convention

Dominica is not a party to the Convention on the Settlement of Investment Disputes.  However, it is a member of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, also known as the New York Arbitration Convention.  The Arbitration Act of 1988 is the main legislation that governs arbitration in Dominica. It adheres to the New York Arbitration Convention.

Investor-State Dispute Settlement

Investors are permitted to use national or international arbitration for contracts entered into with the state.  Dominica does not have a Bilateral Investment Treaty or a Free Trade Agreement with an investment chapter with the United States.

The country ranks 83rd out of 190 countries in resolving contract disputes in the 2019 World Bank Doing Business Report.  Dispute resolution in Dominica takes an average of 681 days. The slow court system and bureaucracy are widely seen as the main hindrances to timely resolution of commercial disputes.  Through the Arbitration Act of 1988, the local courts recognize and enforce foreign arbitral awards issued against the government. Dominica does not have a recent history of investment disputes involving a U.S. person or other foreign investors.

International Commercial Arbitration and Foreign Courts

The Eastern Caribbean Supreme Court is the domestic arbitration body.  Local courts recognize and enforce foreign arbitral awards. The Eastern Caribbean Supreme Court’s Court of Appeal also provides mediation.

Bankruptcy Regulations

Under the Bankruptcy Act (1990), Dominica has a bankruptcy framework that grants certain rights to debtor and creditor.  The 2019 Doing Business Report ranks Dominica 134 out of 190 countries in resolving insolvency.

Investment Incentives

The government of Dominica implemented a series of investment incentives codified in the Fiscal Incentives Act.  These include tax holidays for up to 20 years for approved hotel and resort development projects, duty-free concessions on the purchase of machinery and equipment, and various tax exemptions.  While there is no requirement for enterprises to purchase a fixed percentage of goods from local sources, the government encourages local sourcing. There are no requirements for participation by nationals or the government in foreign investment projects.

Under the Fiscal Incentives Act, four types of enterprise qualify for tax holidays.  The length of the tax holiday for the first three depends on the amount of value added in Dominica.  The fourth type, known as an enclave industry, must produce goods exclusively for export outside the CARICOM region.

Companies that qualify for tax holidays are allowed to import into Dominica duty-free all equipment, machinery, spare parts, and raw materials used in production.

The Hotels Aid Act provides relief from customs duties on items brought into the country for use in construction, extension, and equipping of a hotel of not less than five bedrooms.  In addition, the Income Tax Act provides special tax relief benefits for approved hotels and villa development. A tax holiday for up to 20 years is available for approved hotel and resort developments and up to 10 years for income accrued from the rental of villas in approved villa developments.  The Cabinet must approve these developments.

The standard corporate income tax rate is 25 percent.  There is no capital gains tax. International businesses are exempt from tax.  Corporate tax does not apply to exempt companies or to enterprises that have been granted tax concession.

Dominica provides companies with a further tax concession effective at the end of the tax holiday period.  In effect, it is a rebate of a portion of the income tax paid based on export profits as a percentage of total profits.  Full exemption from import duties on parts, raw materials, and production machinery is also available.

Foreign Trade Zones/Free Ports/Trade Facilitation

There are no foreign trade zones or free ports in Dominica.

Performance and Data Localization Requirements

Dominica does not mandate local employment.  The provisions of the Labor Code outline the requirements for acquiring a work permit and prohibit anyone who is not a citizen of Dominica or the OECS to engage in employment unless they have obtained a work permit.  When the government grants work permits to senior managers because no qualified nationals are available for the post, the government may recommend a counterparty trainee who is a Dominican citizen. There are no excessively onerous visa, residency, or work permit requirements.

As a member of the WTO, Dominica is party to the Agreement to the Trade Related Investment Measures.  While there are no formal performance requirements, the government encourages investments that will create jobs, increase exports and foreign exchange earnings.  There are no requirements for participation by nationals or by the government in foreign investment projects. There is no requirement that enterprises must purchase a fixed percentage of goods or technology from local sources, but the government encourages local sourcing.  Foreign investors receive national treatment. There are no requirements for foreign information technology providers to turn over source code and/or provide access to surveillance (backdoors into hardware and software, turn over keys for encryption, etc.).

Real Property

Civil law protects physical property and mortgage claims.  There are some special license requirements for the acquisition of land, development of buildings, and expansion of existing construction, and special standards for various aspects of the tourism industry.  Individuals or corporate bodies who are not citizens and who are seeking to acquire land require an Alien Landholders License prior to the execution of transactions, depending upon the amount of land in question.  A foreign national may hold less than one acre of land for residential purposes or less than three acres for commercial purposes without obtaining an alien landholding license. If more land is required then a license must be obtained, and the applicant must pay a fee of XCD USD 6,000 (USD2,239) the Office of the Accountant-General.  Applicants must meet all the submission requirements before Cabinet can consider granting the license. Failure to apply for the license will result in a penalty of XCD USD 20,000 (USD 7,408). Upon acquiring land under Section 5 for an approved development, foreign investors must apply for development permission under the Physical Planning Act (2002) within six months of acquiring the land and must start construction of the approved development within one year of receipt of development permission.  Dominica is ranked 168th of 190 countries for ease of registering property in the World Bank Doing Business Report 2019.  It takes about 42 days to complete the five necessary procedures and the cost is about 13.3 percent of the property value.  The report describes the procedure for purchasing and registering property in Dominica.

Intellectual Property Rights

Dominica has a legislative framework supporting its commitment to the protection of intellectual property rights (IPR).  While the legal structures governing IPR are generally adequate, enforcement could be strengthened. The Attorney General is responsible for the administration of IPR laws.  The Companies & Intellectual Properties Office (CIPO) registers patents, trademarks, and service marks.

Dominica is signatory to the Paris Convention for the Protection of Industrial Property, the Patent Cooperation Treaty, and the Berne Convention for the Protection of Literary and Artistic Works.  It is also a member of the UN World Intellectual Property Organization (WIPO).

Article 66 of the Revised Treaty of Chaguaramas (2001) establishing the Caribbean Single Market and Economy (CSME) commits all 15 members to implement IPR protection and enforcement.  The CARIFORUM-EU Economic Partnership Agreement (EPA) contains the most detailed obligations regarding IPR in any trade agreement to which Dominica is a party. The EPA recognizes the protection and enforcement of IPR.  Article 139 of the EPA requires parties to “ensure an adequate and effective implementation of the international treaties dealing with intellectual property to which they are parties, and of the [World Trade Organization (WTO)] Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).”

The Comptroller of Customs of Dominica spearheads the enforcement of IPR, which includes the detention, seizure, and forfeiture of goods.  The Customs and Excise Department investigates customs offences and administers fines and penalties.

Dominica is not included in the United States Trade Representative (USTR) Special 301 Report or Notorious Markets List.

For additional information about treaty obligations and points of contact at local intellectual property offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/  .

Capital Markets and Portfolio Investment

Dominica is a member of the ECCU.  As such, it is a member of the Eastern Caribbean Securities Exchange (ECSE) and the Regional Government Securities Market.  The ECSE is a regional securities market established by the ECCB and licensed under the Securities Act of 2001, a uniform regional body of legislation governing the buying and selling of financial products for the eight member territories.  In 2018, the ECSE listed 135 securities, comprising 112 sovereign debt instruments, 14 equities, and nine corporate bonds. Market capitalization stood at USD 3.07 billion. Dominica is open to portfolio investment.

Dominica has accepted the obligations of Article VIII of the International Monetary Fund (IMF) Agreement, Sections 2, 3, and 4 and maintains an exchange system free of restrictions on making payments and transfers for current international transactions.  Dominica does not normally grant foreign tax credits except in the case of taxes paid in a British Commonwealth country that grants similar relief for Dominica taxes or where an applicable tax treaty provides a credit. The private sector has access to credit on the local market through loans, purchases of non-equity securities, and trade credits and other accounts receivable that establish a claim for repayment.

Money and Banking System

The eight participating governments of the ECCU have passed the Eastern Caribbean Central Bank Agreement Act.  The Act provides for the establishment of the ECCB, its management and administration, its currency, relations with financial institutions, relations with the participating governments, foreign exchange operations, external reserves, and other related matters.  Dominica is a signatory to this agreement and the ECCB controls Dominica’s currency and regulates its domestic banks.

The Banking Act is a harmonized piece of legislation across the ECCU.  The Minister of Finance usually acts in consultation with, and on the recommendation of, the ECCB with respect to those areas of responsibility within the Minister of Finance’s portfolio.

Domestic and foreign banks can establish operations in Dominica.  The Banking Act requires all commercial banks and other institutions to be licensed in order to conduct any banking business.  The ECCB regulates financial institutions. As part of ongoing supervision, licensed financial institutions are required to submit monthly, quarterly, and annual performance reports to the ECCB.  In its latest annual report, the ECCB listed the commercial banking sector in Dominica as stable. Assets of commercial banks totaled USD 876.4 million in 2018 and remained relatively consistent during the previous year.  The reserve requirement for commercial banks was six percent of deposit liabilities.

Dominica is well served by bank and non-bank financial institutions.  There are minimal alternative financial services. Some citizens still participate in informal community group lending.

The Caribbean region has witnessed a withdrawal of correspondent banking services by U.S. and European banks.  CARICOM remains committed to engaging with key stakeholders on the issue and appointed a Committee of Ministers of Finance on Correspondent Banking to monitor the issue.

In March 2019, the ECCB launched an 18-month financial technology pilot to launch a Digital Eastern Caribbean dollar (DXCD) with its partner, Barbados-based Bitt Inc.  The ECCB will work closely with Bitt to develop, deploy, and test technology focusing on data management, compliance, and transaction monitoring systems for know your customer, anti-money laundering, and combating the financing of terrorism.  The goal of the pilot is to improve the risk profile of the ECCU and mitigate against the trend of de-risking by the region’s correspondent banking partners. The pilot will also focus on developing a secure, resilient digital payment and settlement platform with embedded regional and global compliance.  The digital Eastern Caribbean currency will operate alongside physical Eastern Caribbean currency. The ECCB will issue the DXCD to licensed bank and non-bank financial institutions on a private blockchain platform.

Foreign Exchange and Remittances

Foreign Exchange

Dominica is a member of the ECCU and the ECCB. The currency of exchange is the Eastern Caribbean dollar (denoted as XCD).  As a member of the OECS, Dominica has a fully liberalized foreign exchange system. The XCD has been pegged to the United States dollar at a rate of XCD 2.70 to USD 1.00 since 1976.  As a result, the XCD does not fluctuate, creating a stable currency environment for trade and investment in Dominica.

Remittance Policies

Companies registered in Dominica have the right to repatriate all capital, royalties, dividends, and profits free of all taxes or any other charges on foreign exchange transactions.  There are no restrictions on the repatriation of dividends for totally foreign-owned firms. However, a mixed foreign-domestic company may repatriate profits to the extent of its foreign participation.

As a member of the OECS, there are no exchange controls in Dominica and the invoicing of foreign trade transactions are allowed in any currency.  Importers are not required to make prior deposits in local funds and export proceeds do not have to be surrendered to government authorities or to authorized banks.  There are no controls on transfers of funds. Dominica is a member of the Caribbean Financial Action Task Force (CFATF).

In June 2018, the government of Dominica formally signed an Intergovernmental Agreement in observance of FATCA, making it mandatory for banks in Dominica to report the banking information of U.S. citizens.

Sovereign Wealth Funds

Neither the government of Dominica, nor the ECCB, of which Dominica is a member, maintains a sovereign wealth fund.

The private sector is involved in projects that benefit society, including in support of environmental, social, and cultural causes.  Individuals benefit from business-sponsored initiatives when local and foreign owned enterprises pursue volunteer opportunities and make monetary or in-kind donations to local causes.

The non-governmental organization (NGO) community, while comparatively small, is involved in fundraising and volunteerism in gender, health, environmental, and community projects.  The government at times partners with NGOs in activities. The government encourages philanthropy, but does not have regulations in place to mandate such activities by private companies.

The law provides criminal penalties for official corruption, and the government generally implemented these laws effectively.  According to civil society sources and members of the political opposition, officials sometimes engaged in corrupt practices with impunity.  Dominica acceded to the United Nations Convention against Corruption in 2010. The country is party to the Inter-American Convention against Corruption.

The Integrity in Public Office Act, 2003 and the Integrity in Public Office (Amendment) Act 2015 require government officials to account annually for their income, assets, and gifts.  All offenses under the act, including the late filing of declarations, are criminalized. The Integrity Commission was established and functions under this Act. The Integrity Commission’s mandate and decisions can be found at: http://www.integritycommission.gov.dm/  .

The Director of Public Prosecutions is responsible for prosecuting corruption offenses, but it lacks adequate personnel and resources to handle complicated money laundering and public corruption cases.

Resources to Report Corruption

Dermot Southwell
Chairman, Integrity Commission
Cross Street, Roseau, Dominica
Tel: 1-767-266-3436
Email: integritycommission@dominica.gov.dm

Dominica held parliamentary elections in December 2014.  The next general elections is constitutionally due by December 2019.  There were no reports of political violence.

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy

* Source for Host Country Data: Eastern Caribbean Central Bank https://www.eccb-centralbank.org/statistics/dashboard-datas/   . All ECCB GDP figures for 2018 are currently estimates.

Table 3: Sources and Destination of FDI

Data not available; Dominica does not appear in the IMF’s Coordinated Direct Investment Survey (CDIS).

Table 4: Sources of Portfolio Investment

Data not available; Dominica does not appear the IMF Coordinated Portfolio Investment Survey (CPIS).

Policies Towards Foreign Direct Investment

The Dominican government promotes inward FDI and has established formal programs to attract it, including the 2017 launch of the “ProDominicana” program.  The legal framework supports foreign investment. Article 221 of the Constitution declares that foreign investment shall receive the same treatment as domestic investment. Foreign Investment Law (No. 16-95) states that unlimited foreign investment is permitted in all sectors, with a few exceptions for hazardous materials or materials linked to national security. The Dominican Republic provides tax incentives to investment in tourism, renewable energy, film production, Haiti-Dominican Republic border development, and the industrial sector.  The Dominican Republic is also a signatory of CAFTA-DR, which mandates non-discriminatory treatment, free transferability of funds, protection against expropriation, and procedures for the resolution of investment disputes.

The Export and Investment Center of the Dominican Republic (CEI-RD) offers assistance for prospective foreign investors, including assistance with business registration and identification of investment opportunities.  The National Council of Free Trade Zones for Export (CNZFE) offers assistance to foreign companies looking to invest in the free trade zones.

Limits on Foreign Control and Right to Private Ownership and Establishment

There are no general (statutory, de facto, or otherwise) limits on foreign ownership or control.  According to Law No. 98-03 and Regulation 214-04, an interested foreign investor must file an application form at the offices of CEI-RD within 180 calendar days from the date on which the foreign investment took place. CEI-RD will then evaluate the application and issue the corresponding Certificate of Registration within 15 working days.

In order to set up a business in a free trade zone, a formal request must be made to the CNZFE, the entity responsible for issuing the operating licenses needed to a free zone company or operator.  CNZFE assesses the application and determines its feasibility. For more information on the procedure to apply for an operating license, visit the website of the CNZFE at http://www.cnzfe.gov.do  .

The Dominican Republic does not maintain a formalized investment screening and approval mechanism for inbound foreign investment.

Other Investment Policy Reviews

The Organization for Economic Cooperation and Development (OECD) has not conducted an investment policy review of the Dominican Republic.  The United Nations Conference on Trade and Development (UNCTAD) published an investment policy review in 2009. The World Trade Organization (WTO) published a trade policy review in 2015.

• UNCTAD – https://unctad.org/en/pages/PublicationArchive.aspx?publicationid=6343  
• WTO – https://www.wto.org/english/tratop_e/tpr_e/s319_e.pdf 

Business Facilitation

According to the World Bank’s 2018 Doing Business report, starting a limited liability company (Sociedad de responsibilidad limitada or SRL) in the Dominican Republic is a seven-step process, which requires 16.5 days.  SRL registration steps include (1) verifying the availability of the company name with the National Office of Industrial Property (ONAPI); (2) purchasing the company name with ONAPI; (3) paying the incorporation tax with the National Internal Revenue Agency (DGII); (4) registering the company with the Chamber of Commerce and obtaining a tax identification number (RNC); (5) filing for the national taxpayer registry and applying for fiscal receipts at DGII; (6) registering local employees with the Ministry of Labor; and (7) registering employees at the Social Security Office.

The Dominican Republic has a single-window registration website for SRL registration (https://www.formalizate.gob.do/ ) that offers a one-stop shop for registration needs.  Foreign companies may use the registration website. However, this electronic method of registration is not widely used in practice and consultation with a local lawyer is advisable for company registrations.

The Ministry of Industry and Commerce (MIC) leads the Dominican Republic’s assistance and registration program for micro, small, and medium-sized enterprises (PYMES).  The PYMES program, a partnership between the MIC and the National Competitiveness Council, offers technical assistance to majority Dominican-owned micro, small, and medium companies.   According to the Law no. 187-17, micro enterprises are those with 10 employees or less, the small enterprises are defined as those with 11 to 50 employees, and medium enterprises employ 51 to 150 employees.

Outward Investment

There are no legal or government restrictions on domestic investment abroad, although outbound foreign investment is significantly lower than inbound investment.  The largest recipient of Dominican outward investment is the United States.

The Dominican Republic has Bilateral Investment Treaties (BIT) in-force with: Chile, Finland, France, Italy, Republic of Korea, Morocco, Netherlands, Panama, Spain, and Switzerland. (Note: The Dominican Republic also had a BIT with Taiwan.  Post is working to confirm whether that agreement remains in force after the Dominican Republic’s recognition of the People’s Republic of China in May 2018. End Note.). The Dominican Republic has signed BITs with Argentina, Cuba, and Haiti, however, these agreements are not in force. According to the Dominican Ministry of Industry and Commerce, free trade agreements currently in force include: CAFTA-DR; the Economic Partnership Agreement (EPA) between the European Union and CARIFORUM (an organization of Caribbean nations, including the Dominican Republic); a trade agreement between the Dominican Republic and the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua; a free trade agreement with CARICOM (the Caribbean Community); and a trade agreement with Panama.

An agreement for the exchange of tax information between the United States and Dominican Republic has been in effect since 1989.  In 2016, the United States and the Dominican Republic signed an agreement to improve international tax compliance and to implement the Foreign Account Tax Compliance Act (FATCA).  However, the agreement has yet to be implemented. The Dominican Republic has tax agreements in force with Canada and Spain to avoid double taxation and prevent tax evasion.

Transparency of the Regulatory System

On the 2018 Global Innovations Index, the Dominican Republic ranks 104 out of 127 for regulatory environment and 73 out of 127 for regulatory quality.  The World Economic Forum 2018 Global Competitiveness Report ranked the Dominican Republic 95 out of 140 countries in efficiency of the legal framework in challenging regulations, and 99 out of 140 in burden of government regulations.

The World Bank Global Indicators of Regulatory Governance states that Dominican ministries and regulatory agencies do not develop forward regulatory plans.  In other words, they do not publish a list of anticipated regulatory changes or proposals intended for adoption or implementation within a specific timeframe.  Law 200-04 requires regulatory agencies to give notice of proposed regulations in public consultations and mandates publication of the full text of draft regulations on a unified website: http://www.consultoria.gov.do/  .  Foreign investors, however, claim that these requirements are not always met in practice.  Moreover, many businesses note that the scope of the website content is not always adequate for investors or interested parties.  Some report that individual ministries sometimes upload proposed regulations to their websites or post them in national newspapers.  Ministries sometimes form working groups with key public and private sector stakeholders participating in the drafting of proposed regulations.   

Some Ministries and regulatory agencies solicit comments on proposed legislation from the public; however, public outreach is generally limited to stakeholders.  Comments are not publicly accessible. Some ministries and agencies prepare consolidated reports on the results of the consultation, which they distribute directly to interested stakeholders.  Ministries and agencies do not conduct impact assessments of regulations or ex post reviews. Affected parties cannot request reconsideration or appeal of adopted regulations. 

The Dominican Institute of Certified Public Accountants (ICPARD) is the country’s legally recognized professional accounting organization and has authority to establish accounting standards in accordance with Law 479-08, which also declares (as amended by Law 31-11) financial statements should be prepared in accordance with generally accepted accounting standards nationally and internationally.  The ICPARD and the country’s stock market regulator (Superintendencia del Mercado de Valores) require the use of International Financial Reporting Standards (IFRS) and IFRS for small and medium-sized entities (SMEs).

By law, the Office of Public Credit produces a quarterly report on the status of the non-financial public sector debt.  The Office of Public Credit presents a wide array of information and statistics on public debt bonds and projections on its website. www.creditopublico.gov.do/publicaciones/informes_trimestrales.htm  

 In addition to the public debt addressed by the office of Public Credit, the Central Bank maintains on its balance sheet approximately USD 11 billion in “quasi-fiscal” debt. Added to other borrowing, it puts the Debt-to-GDP ratio near 53 percent, and the Debt Service Ratio near 30 percent.

International Regulatory Considerations

Since 2003, the Dominican Republic has presented 226 regular notifications to the WTO Committee on Technical Barriers to Trade (TBT).  In recent years, the Dominican Republic has frequently changed technical requirements (e.g., for steel rebar imports and sanitary registrations, among others) and has failed to notify these requirements under the WTO TBT agreement and CAFTA-DR.

Legal System and Judicial Independence

The World Economic Forum 2018 Global Competitiveness report ranked the Dominican Republic 125 out of 140 countries in judicial independence and 95 of 140 in the efficiency of the legal framework in settling disputes.  On the 2018 Global Innovations Index, the Dominican Republic ranked 78 out of 126 countries for rule of law.

The judicial branch is an independent branch of the Dominican government.  According to Article 69 of the Constitution, all persons, including foreigners, have the right to appear in court.  The basic concepts of the Dominican legal system and the forms of legal reasoning derive from French law. The five basic French Codes (Civil, Civil Procedure, Commerce, Penal, and Criminal Procedure) were translated into Spanish and passed as legislation in 1884.  Some of these codes have since been amended and parts have been replaced. Subsequent Dominican laws are not of French origin.

The country is divided into 12 Judicial Departments, each one headed by a Court of Appeals with jurisdiction over civil and criminal matters in 35 Judicial Districts.  Justices of the Peace handle small claims, certain traffic accidents, landlord-tenant disputes, and other matters. There are also specialized courts with jurisdiction over labor cases, disputes involving registered land, cases involving minors, and administrative matters.  The Supreme Court is the highest court, with jurisdiction to handle most appeals from the courts of appeal, and first instance jurisdiction in criminal matters involving certain high-level government officials. The Constitutional Tribunal rules on the constitutionality of laws, decrees, and treaties and decides cases involving constitutional questions.

Some investors complain of long wait times for a decision by the judiciary.  According to the World Bank’s Doing Business report, while Dominican law mandates overall time standards for the completion of key events in a civil case, these standards frequently are not met. The Civil Procedure Code dates from 1884, and there have been few modifications.  The resolution of a civil case normally takes two to four years, although some take longer. Some investors have complained that the local court system is unreliable, biased against them, and that special interests and powerful individuals are able to use the legal system in their favor.

U.S. firms indicate that corruption on all levels – business, government, and judicial – impedes their access to justice. Several large U.S. firms have been subjects of injunctions issued by lower courts on behalf of distributors with whom they are engaged in a contract dispute.  According to some reports, these disputes are often the result of the firm seeking to end the relationship in accordance with the contract, and the distributor uses the injunction as a way of obtaining a more beneficial settlement. Many companies have noted that these injunctions often disrupt distribution activities, with negative effects on sales.  In order to engage effectively in the Dominican market, many U.S. companies seek local partners that are well-connected and understand the local business environment.

Decree No. 610-07 placed the Directorate of Foreign Commerce (DICOEX) in charge of commercial dispute settlement, including disputes related to the Investment Chapter of CAFTA-DR.  The main laws governing commercial disputes are the Commercial Code; Law No. 479-08, the Commercial Societies Law; Law No. 3-02, concerning Business Registration; Commercial Arbitration Law No. 489-08; Law No. 141-15 concerning Restructuring and Liquidation of Business Entities; and Law No. 126-02, concerning e-Commerce and Digital Documents and Signatures.

Laws and Regulations on Foreign Direct Investment

The Export and Investment Center of the Dominican Republic (CEI-RD) aims to be the one-stop-shop for investment information, registration, and investor after-care services.  CEI-RD maintains a user-friendly website for guidance on the government’s priority sectors for inward investment and on the range of investment incentives (http://cei-rd.gob.do/  ).

Competition and Anti-Trust Laws

The National Commission for the Defense of Competition (Pro-Competencia) has the power to review transactions for competition related concerns.  Private sector contacts note, however, that strong public pressure is required for Pro-Competencia to take action.

Expropriation and Compensation

The Dominican constitution permits the government’s exercise of eminent domain; however, it also mandates fair market compensation in advance of the use of land taken.  Nevertheless, there are many outstanding disputes between U.S. investors and the Dominican government concerning unpaid government contracts or expropriated property and businesses.  Property claims make up the majority of cases. Most, but not all, expropriations have been used for infrastructure or commercial development. Many claims remain unresolved for years.

Investors and lenders have reported that they typically do not receive prompt payment of fair market value for their losses.  They have complained of difficulties in the subsequent enforcement even in cases in which the Dominican courts, including the Supreme Court, have ordered compensation or when the government has recognized a claim.  In other cases, some indicate that lengthy delays in compensation payments are blamed on errors committed by government-contracted property assessors, slow processes to correct land title errors, a lack of budgeted funds, and other technical problems.  There are also cases of regulatory action that investors say they could be argued to be indirect expropriation. For example, they note that government decrees mandating atypical setbacks from roads or other public infrastructure may deprive investors of the economic benefits of their investments.

Many companies report that the procedures to resolve expropriations lack transparency and, to a foreigner, may appear antiquated.  Few examples exist where government officials are held accountable for failing to pay a recognized claim or failing to pay in a timely manner.

Dispute Settlement

ICSID Convention and New York Convention

In 2000, the Dominican Republic signed the International Center for the Settlement of Investment Disputes (Washington Convention), however, the Dominican Congress did not ratify the agreement as required by the constitution.  In 2001, the Dominican Republic became a contracting state to the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention). The agreement entered into force by Congressional Resolution 178-01.

Investor-State Dispute Settlement

The Dominican Republic has entered into 12 bilateral investment treaties, most of which contain dispute resolution provisions that submit the parties to arbitration.  As a signatory to CAFTA-DR, the Dominican Republic is bound by the investment chapter of CAFTA-DR. There are currently three pending U.S. investor-state dispute cases filed against the Dominican Republic under CAFTA-DR.

The Embassy is aware of at least 28 U.S. investors who are involved in ongoing legal disputes with the Dominican government and parastatal firms involving payments, expropriations, contractual obligations, or regulatory obligations.  The investors range from large firms to private individuals and the disputes are at various levels of legal review.

International Commercial Arbitration and Foreign Courts

Law 489-08 on commercial arbitration governs the enforcement of arbitration awards, arbitral agreements, and arbitration proceedings in the Dominican Republic.  Per law 489-09, arbitration may be ad-hoc or institutional, meaning the parties may either agree on the rules of procedure applicable to their claim, or they may adopt the rules of a particular institution.  Fundamental aspects of the United Nations Commission on International Trade (UNCITRAL) model law are incorporated into Law 489-08. In addition, Law 181-09 created an institutional procedure for the Alternative Dispute Resolution Center of the Chamber of Commerce Santo Domingo (http://www.camarasantodomingo.do/  ).

Foreign arbitral awards are enforceable in the Dominican Republic in accordance with Law 489-09 and applicable treaties, including the New York Convention.  U.S. investors complain that the judicial process is slow and that domestic claimants with political connections have an advantage.

Bankruptcy Regulations

Law 141-15 provides the legal framework for bankruptcy.  It allows a debtor company to continue to operate for up to five years during reorganization proceedings by staying legal proceedings.  It also authorizes specialized bankruptcy courts; contemplates the appointment of conciliators, verifiers, experts, and employee representatives; allows the debtor to contract for new debt which will have priority status in relation to other secured and unsecured claims; stipulates civil and criminal sanctions for non-compliance; and permits the possibility of coordinating cross-border proceedings based on recommendations of the UNCITRAL Model Law of 1997.  In March 2019, a specialized bankruptcy court was established in Santo Domingo. The national juridical school is still training specialized bankruptcy judges.

The Dominican Republic scores lower than the regional average and comparator economies on resolving insolvency, according to the World Bank’s Doing Business Report.

Investment Incentives

Foreign investors receive no special investment incentives and no other types of favored treatment, except for investments in renewable energy; in manufacturing investments located in Special Zones; and investments in tourism projects in certain locations. There are no requirements for investors to export a defined percentage of their production.

Foreign companies are not restricted in their access to foreign exchange.  There are no requirements that foreign equity be reduced over time or that technology be transferred according to defined terms.  The government imposes no conditions on foreign investors concerning location, local ownership, local content, or export requirements.

The Renewable Energy Incentives Law No. 57-07 provides some incentives to businesses developing renewable energy technologies.  Foreign investors praise the provisions of the law, but express frustration with approval and execution of potential renewable energy projects.

Special Zones for Border Development, created by Law No. 28-01, encourage development near the economically deprived Dominican Republic – Haiti border.  A range of incentives, largely in the form of tax exemptions for a maximum period of 20 years, are available to direct investments in manufacturing projects in the Zones.  These incentives include the exemption of income tax on the net taxable income of the projects, the exemption of sales tax, the exemption of import duties and tariffs and other related charges on imported equipment and machinery used exclusively in the industrial processes, as well as on imports of lubricants and fuels (except gasoline) used in the processes.

Law 158-01 on Tourism Incentives, as amended by Law 195-13, and its regulations, grants wide-ranging tax exemptions, for fifteen years, to qualifying new projects by local or international investors. The projects and businesses that qualify for these incentives are: (a) hotels and resorts; (b) facilities for conventions, fairs, festivals, shows and concerts; (c) amusement parks, ecological parks, and theme parks; (d) aquariums, restaurants, golf courses, and sports facilities; (e) port infrastructure for tourism, such as recreational ports and seaports; (f) utility infrastructure for the tourist industry such as aqueducts, treatment plants, environmental cleaning, and garbage and solid waste removal; (g) businesses engaged in the promotion of cruises with local ports of call; and (h) small and medium-sized tourism-related businesses such as shops or facilities for handicrafts, ornamental plants, tropical fish, and endemic reptiles.

For existing projects, hotels and resort-related investments that are five years or older are granted 100 percent exemptions from taxes and duties related to the acquisition of the equipment, materials and furnishings needed to renovate their premises. In addition, hotels and resort-related investments that are fifteen years or older will receive the same benefits granted to new projects if the renovation or reconstruction involves 50 percent or more of the premises.

Finally, individuals and companies get an income tax deduction for investing up to 20 percent of their annual profits in an approved tourist project. The Tourism Promotion Council (CONFOTOUR) is the government agency in charge of reviewing and approving applications by investors for these exemptions, as well as supervising and enforcing all applicable regulations. Once CONFOTOUR approves an application, the investor must start and continue work in the authorized project within a three-year period to avoid losing incentives.

The government does not currently have a practice of jointly financing foreign direct investment projects.  It has contemplated changes to the investment legal framework, such as a law on public-private partnerships, but this change has not yet been introduced.

Foreign Trade Zones/Free Ports/Trade Facilitation

The Dominican Republic’s free trade zones (FTZs) are regulated by the Promotion of Free Zones Law (No. 8-90), which provides for 100 percent exemption from all taxes, duties, charges and fees affecting production and export activities in the zones. These incentives are for 20 years for zones located near the Dominican-Haitian border and 15 years for those located throughout the rest of the country.  This legislation is managed by the Free Trade Zone National Council (CNZFE), a joint private sector/government body with discretionary authority to extend the time limits on these incentives. Products produced in FTZs can be sold on the Dominican market, however, relevant taxes apply.

In general, firms operating in the FTZs experience report fewer bureaucratic and legal problems than do firms operating outside the zones.  Foreign currency flows from the FTZs are handled via the free foreign exchange market. Foreign and Dominican firms are afforded the same investment opportunities both by law and in practice.

In 2018, FTZs exports totaled USD USD 6.2 billion, comprising 3.3 percent of GDP.  According to CNZFE’s 2018 Statistical Report, there are 673 companies (up from 665 the previous year) operating in a total of 74 FTZs (up from 71 the previous year).  Of the companies operating in FTZs, 39.9 percent are from the United States. Other significant investments were made by companies registered in the Dominican Republic (22.4 percent), United Kingdom (8.2 percent), Canada (4.5 percent), and Germany (3.5 percent).  Companies registered in 38 other countries comprised the remaining 22.6 percent of investments. The main FTZ sectors receiving investment include: medical and pharmaceutical products (27.3 percent); tobacco and derivatives (20 percent); textiles (14.5 percent); services (7.7 percent); agroindustrial products (6 percent), footwear (4.2 percent); metals (3 percent); plastics (2.6 percent); and electronics (2.4 percent).

Exporters/investors seeking further information from the CNZFE may contact:

Consejo Nacional de Zonas Francas de Exportación
Leopoldo Navarro No. 61
Edif. San Rafael, piso no. 5
Santo Domingo, Dominican Republic
Phone: (809) 686-8077
Fax: (809) 686-8079
Website Address: http://www.cnzfe.gov.do  

Performance and Data Localization Requirements

The Dominican labor code establishes that 80 percent of the labor force of a foreign or national company, including free trade zone companies, be composed of Dominican nationals.  The management or administrative staff of a foreign company is exempt from this regulation. The Foreign Investment Law (No. 16-95) provides that contracts for licensing patents or trademarks, for the provision of technical expertise, and for leases of machinery and equipment must be registered with the Directorate of Foreign Investment of the Central Bank.

There are no requirements for foreign information technology providers to turn over source code and/or provide access (i.e. backdoors into hardware and software or turn-over keys for encryption) to surveillance.  There are no mechanisms used to enforce any rules on maintaining set amounts of data storage within the country/economy. The government has not enacted data localization policies.

Real Property

The Dominican Constitution guarantees the right to own private property and provides that the state shall promote the acquisition of property, especially titled real property.  The Constitution further provides that it is “in the public interest that land be devoted to useful purposes and that large estates be gradually eliminated.” Furthermore, the state social policy shall promote land reform and effectively integrate the rural population to the national development process by encouraging renewal of agricultural production.

Mortgages and liens exist in the Dominican Republic, and there is a National Registry of Deeds.  The government advises that investors are ultimately responsible for due diligence and recommends partnering with experienced attorneys to ensure that all documentation, ranging from title searches to surveys, have been properly verified and processed.

Under Dominican law, all land must be registered, and that which is not registered is considered state land.  Registration requires seven steps, an average of 60 days, and payment of 3.7 percent of the value of the land as a registration fee.  The landowner is required to have a survey of the land, a certificate demonstrating that property taxes are current, and a certificate from the Title Registry Office that evidences any encumbrances on the land (such as mortgages or easements) and serves as a check on the extent of land rights to be transferred.  Property ownership may revert to occupants (such as squatters) after twenty years, if they properly register the property.

Many businesses have complained that land tenure insecurity persists, fueled by government land expropriations, institutional weaknesses, lack of effective law enforcement, and local community support for land invasions and squatting.  Some companies have reported that concessions granted by the government are subsequently interfered with or not respected, and alleged political expediency or influence as a reason for such actions. Despite the requirement of land registration, some land in the Dominican Republic is not registered, and even if land rights are registered, tenure is not assured, according to some reports.  Investors have claimed that ln some parts of the country, unregistered land has been expropriated for development without notice or compensation. In some cases, however, holders of title certificates have reported to receive little or no additional security. Several companies note that long-standing titling practices, such as issuing provisional titles that are never completed or providing title to land to multiple owners without requiring individualization of parcels, have created substantial ambiguity in property rights and undermined the reliability of land records.  Some report that certain of these practices have been curtailed in the last few years, but nonetheless undermine the reliability of existing land documentation. In addition, companies have complained of the country’s struggles to control fraud in the creation and registration of land titles, including illegal operations within the government agencies responsible for issuing titles.

In the last decade, the Dominican government has implemented reform programs focused on developing institutional frameworks and strengthening government agencies and public administration.  As part of its overarching program to modernize the justice sector, the Dominican Republic Supreme Court modernized its property title registration process through a USD 10 million USD Inter-American Development Bank (IDB) loan in an effort to address deficiencies and gaps in the land administration system and strengthen land tenure security.  The project involved digitization of land records, decentralization of registries, establishment of a fund to compensate people for title errors, separation of the legal and administrative functions within the agency, and redefinition of the roles and responsibilities of judges and courts.

The Dominican government has instituted a number of reforms, including the development of a cadaster with digitized property titles and the establishment and expansion of 23 land registry offices across the country.  In 2012, the government created the State Lands Titling Commission, which, working with the Dominican Agrarian Institute, is intended to achieve the titling of around 150,000 urban and rural properties.

Intellectual Property Rights

Since 2003, the U.S. Trade Representative (USTR) has designated the Dominican Republic as a Special 301 Watch List country for serious intellectual property rights (IPR) deficiencies.  Despite strong IPR laws on the books, enforcement is reported to remain weak. In the 2019 Watch List designation, USTR cited the Dominican government’s lack of progress in addressing long-standing IPR issues such as signal piracy and the widespread availability of counterfeit products.  Weak IPR enforcement can be attributed to lack of resources and properly trained personnel; weak institutions and the absence of an inter-institutional enforcement mechanism to unite the various IPR authorities; and widespread cultural acceptance of piracy and counterfeiting.

Key IPR issues that third parties have flagged include rampant television signal broadcast piracy, insufficient enforcement actions against the manufacturers of counterfeit pharmaceuticals and other products, and weak customs enforcement against counterfeit trafficking. A 2018 Euromonitor International report noted that 30.8 percent of all alcohol consumed in the Dominican Republic was either counterfeit or smuggled, the highest rate in all of Latin America.

Customs officers have ex officio authority to seize any goods suspected as counterfeit.  Prior to destroying counterfeit goods, customs officers must notify the rights holder. During this time, customs stores the goods at the expense of the rights holder.  The rights holder then has 30 days to inspect the shipment and reach an agreement with the sender and manufacturer. At the end of the 30 days, if no agreement has been reached, then the rights holder can pay to send the items back or to have them destroyed.  If the rights holder does not act, customs will release the shipment to the importer.

U.S. industry representatives observe more willingness on the part of Dominican authorities to prosecute health and safety crimes as opposed to copyright and trademark violations.  In 2018, industry representatives said the Attorney General’s office for Technology Crimes, which oversees IPR prosecutions, deprioritized the prosecution of copyright and trademark violations and focused instead on cybercrimes.  By contrast, industry representatives complimented the work of the Attorney General’s Office for Health Matters, which is responsible for prosecuting manufacturers and distributors of counterfeit pharmaceuticals, cigarettes, and food products.

For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/  .

Resources for Rights Holders

Contact at Mission:

Economic Officer
U.S. Embassy Santo Domingo
(809) 567-7775
Email: InvestmentDR@State.gov

Country/Economy resources:

List of Attorneys in the Dominican Republic, compiled by the Consular Section of the U.S. Embassy in Santo Domingo: https://do.usembassy.gov/u-s-citizen-services/local-resources-of-u-s-citizens/legal-assistance/

American Chamber of Commerce of the Dominican Republic
Avenida Sarasota No. 20
Torre Empresarial, 6to. Piso.
Santo Domingo
(809) 381-0777
Email: amcham@amcham.org.do

National Copyright Office (ONDA)
Ministry of Industry and Commerce
Edificio del Archivo General de la Nación
Calle Modesto Diaz No. 2
Zona Universitaria
Santo Domingo, D.N.
809-508-7373 / 809-508-7742
Email: admin.onda@onda.gob.do

National Office of Industrial Property (ONAPI)
Ministry of Industry and Commerce
Av. Los Próceres No.11, Santo Domingo, D.N.
(809) 567-7474
Email: serviciocliente@onapi.gob.do

Capital Markets and Portfolio Investment

The Dominican stock market, the Bolsa de Valores de Santo Domingo, is regulated by the Monetary Council and supervised by the Superintendency of Securities, which approves all public securities offerings.  The private sector has access to a variety of credit instruments. Foreign investors are able to obtain credit on the local market, but tend to prefer less expensive offshore sources. The Central Bank regularly issues certificates of deposit, using an auction process to determine interest rates and maturities.

Money and Banking System

The Dominican banking sector is comprised by 124 entities, as follows: 60 financial intermediation entities (including multiple banks, savings and loans associations, savings and loans banks, financial intermediation public entities, credit corporations), 47 foreign exchange and remittance agents (specifically, 42 exchange brokers and 5 remittances and foreign exchange agents), and 17 trustees.

The mission of the Dominican Central Bank is to ensure the stability of prices, guarantee the efficient regulation of the financial system and the proper functioning of payment systems, as the issuing entity and executor of monetary, exchange, and financial policies to contribute with the growth of national economy

Foreign banks may establish operations in the Dominican Republic, although it may require a special decree for the foreign financial institution to establish domicile in the country.  Foreign banks not domiciled in the Dominican Republic may establish representative offices in accordance with current regulations. Major U.S. banks have a commercial presence in the country, but most focus on corporate banking services as opposed to retail banking.  Some other foreign banks offer retail banking. There are no restrictions on foreigners opening bank accounts, although identification requirements do apply.

The Dominican government enacted robust banking reforms in the wake of a 2003 financial crisis.  Today, the Dominican Republic’s financial sector is relatively stable and the IMF declared the financial system indicators largely satisfactory during 2019 Article IV consultations.  The IMF team’s preliminary report noted that the country’s “robust economic performance benefitted from the strengthened policy frameworks, competitiveness, and banking system over the past decade.”

Foreign Exchange and Remittances

Foreign Exchange

The Dominican exchange system is a market with free convertibility of the peso.  Economic agents perform their transactions of foreign currencies under free market conditions.  There are generally no restrictions or limitations placed on foreign investors in converting, transferring, or repatriating funds associated with an investment.

The Central Bank sets the exchange rates and practices a policy of managed float.  Some firms have had repeated difficulties obtaining dollars during periods of high demand.  Importers may obtain foreign currency directly from commercial banks and exchange agents. The Central Bank participates in this market in pursuit of monetary policy objectives, buying or selling currencies and performing any other operation in the market to minimize volatility.

Remittance Policies

The Regulation No. 214-04 on the Registration of Foreign Investment in the Dominican Republic establishes the requirements for the registration of foreign investments, the remittance of profits, the repatriation of capital, and the requirements for the sale of foreign currency, among other issues related with investments.

Sovereign Wealth Funds

The Dominican government does not maintain a sovereign wealth fund.

The government does not have an official position or policy on responsible business conduct, including corporate social responsibility (CSR).  Although there is not a local culture of CSR, large foreign companies normally have active CSR programs, as do some of the larger local business groups.  While most local firms do not follow OECD principles regarding CSR, the firms that do are viewed favorably, especially when their CSR programs are effectively publicized.

The Dominican Constitution states “Everyone has the right to have quality goods and services, to objective, truthful and timely information about the content and characteristics of the products and services that they use and consume”  To that end, the national consumer protection agency, Pro Consumidor, offers consumer advocacy services.

The country joined the Extractive Industries Transparency Initiative (EITI) as candidate in 2016.  The government incorporates EITI standards into its mining transparency framework. In 2019, EITI is conducting a validation study of the Dominican Republic’s implementation of EITI standards.

The Dominican Republic has a legal framework that includes laws, regulations and criminal penalties to combat corruption.  Foreign investors, however, indicate that corruption and official impunity are endemic in the security forces, government, and private sector.  Many companies complain of the often ineffectiveness in enforcing existing laws. Some report that corruption and the need for reform are an openly and widely discussed public grievance.  The 2018 Transparency International Corruption Perception Index ranked the Dominican Republic 129th out of 180 countries assessed. The World Economic Forum’s 2018 Global Competitiveness report ranked the Dominican Republic as 113 of 140 countries for incidence of corruption.  U.S. businesses operating in the Dominican Republic often need to take extensive measures to ensure compliance with the Foreign Corrupt Practices Act.

In December 2016, high-level public officials in the Dominican Republic were among those implicated in the far-reaching corruption scandal involving Brazilian construction giant Odebrecht.  In a plea agreement with the United States Department of Justice, Odebrecht admitted to paying more than USD 92 million in kickbacks to Dominican officials to secure public works contracts. U.S. companies say the government’s slow response to this scandal contributes to a culture of perceived impunity for high-level government officials, which fuels widespread acceptance and tolerance of corruption at all levels.

Civil society is engaged in anti-corruption campaigns. Several non-governmental organizations are particularly active in transparency and anti-corruption, notably the Foundation for Institutionalization and Justice (FINJUS), Citizen Participation (Participación Ciudadana), and the Dominican Alliance Against Corruption (ADOCCO).

UN Anticorruption Convention, OECD Convention on Combatting Bribery

The Dominican Republic signed and ratified the UN Anticorruption Convention.  The Dominican Republic is not a party to the OECD Convention on Combating Bribery.

Resources to Report Corruption

Contact for government agency responsible for combating corruption:

Procuraduría Especializada contra la Corrupción Administrativa (PEPCA)
Calle Hipólito Herrera Billini esq. Calle Juan B. Pérez
Centro de los Heroes, Santo Domingo, República Dominicana
Telephone: (809) 533-3522
Fax: (809) 533-4098
Email: info@pepca.pgr.gob.do

Government service for filing complaints and denunciations:

Linea 311
Phone: 311 (from inside the country)
Website: http://www.311.gob.do/ 

Contact for “watchdog” organization that monitors corruption:

Participación Ciudadana
Phone: 809 685 6200
Fax: 809 685 6631
Email: info@pciudadana.org

There is no recent history of widespread, politically motivated violence.  In 2017, there were multiple, mostly-peaceful protests throughout the country over corruption, access to identity documents for Dominicans of Haitian descent, and labor disputes.  There are no examples of significant politically motivated damage to projects or installations in the last 10 years.

In polling, Dominicans consistently cite crime and violence as among the largest challenges affecting daily life.  The World Economic Forum 2018 Global Competitiveness report ranked the Dominican Republic 123 out of 140 countries in overall security imposing costs on business and 100 of 140 in terms of organized crime imposing costs on businesses.

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy

Table 3: Sources and Destination of FDI

Data not available (country not reported on IMF/CDIS website)

Table 4: Sources of Portfolio Investment

Data not available (country not reported on IMF/CDIS website)

Policies Towards Foreign Direct Investment

Grenada employs a liberal approach to FDI.  The strategic agenda of the government of Grenada demonstrates its belief that investment is directly related to growth and development.  As a result, the government of Grenada identified additional foreign investment opportunities related to the country’s resource endowment of “sand, sun, sea and rich fertile soil.”  The government of Grenada’s accession to international trade and development agreements opened a greater number of sectors to foreign investment opportunities.

The GIDC is the country’s investment promotion agency.  It was established by Grenada in 1985 as a statutory body to stimulate, facilitate, and encourage the creation and development of industry.  Through an act of parliament, the name was changed to Grenada Investment Development Corporation in 2016 to convey its mandate more clearly. The GIDC is comprised of three strategic business units responsible for carrying out its core responsibilities. They are:

1. Investment Promotion Agency: responsible for investment promotion facilitation;
2. Business Development Centre: provides business support services to micro-, small and medium-sized enterprises; and,
3. Facilities: manages the three business parks owned by the GIDC.

A fourth unit, “shared services,” provides financial, human resource management, legal, research, and monitoring and evaluation support to the Strategic Business Units.  The GIDC is a “one-stop shop” offering:

• Investment and trade information
• Investment incentives
• Investment facilitation and aftercare
• Entrepreneurial/business skills training
• Small business support services
• Industrial facilities
• Policy advice

In an effort to promote FDI, the GIDC adopts a targeted approach to promote investment opportunities, provides investor facilitation and entrepreneurial development services, and advocates for a supportive enabling environment for investors to develop and grow businesses, trade, and industries.

Investment retention is a priority in Grenada.  This is maintained through ongoing dialogues with investors facilitated by the GIDC.

Limits on Foreign Control and Right to Private Ownership and Establishment

There are no economic and industrial strategies that discriminate against foreign investors.

Non-Grenadian investors may be required to obtain an Alien Landholding License and pay a property transfer tax, which levies a 10 percent fee on the purchase of shares in a Grenadian registered company or real estate.  In addition, the sale of such shares or real estate to non-nationals will attract a property transfer tax of 15 percent payable by the seller. Foreign investors employed in Grenada are required to obtain a work permit, renewable annually.  U.S. investors must pay a fee of USD $1,111 or XCD $3,000 for work permits. The renewal fee varies based on the investor’s country of citizenship.

There are no limits on foreign ownership or control.  Foreign investors may not invest in or operate investment enterprises that are prejudicial to national security or detrimental to the environment, public health, or the national culture, or which contravene the laws of Grenada.  Grenada has accepted but not yet implemented regional obligations on anti-competition concerns. U.S investors are not disadvantaged or singled out by any of the ownership or control mechanisms, sector restrictions, or investment screening mechanisms in Grenada relative to other foreign investors.

Other Investment Policy Reviews

Grenada passed its most recent Investment Promotion Act in 2014, replacing the 2009 Act.  The new legislation promotes, encourages, and protects investment in Grenada by providing investors with a stable framework of fundamental and enforceable rights.  It seeks to guarantee and ensure security and fairness in strict accordance with the rule of law and best international standards and practices. The 2014 Act is also in compliance with WTO regulations, the Economic Partnership Agreement (EPA) between the EU and the Caribbean Community (CARICOM), and the Agreement between the Caribbean Forum (CARIFORUM) and the EU.

In 2016, parliament approved a new incentives regime.  The new regime involved amendments to specific legislation that grants incentives.  This was devised to ensure that all new tax exemptions are codified in legislation. It also restricted discretionary exemptions and required that the beneficiaries of exemptions file appropriate tax returns and comply with tax requirements.

It also proposes a streamlined, simple, and non-discretionary system/process for the granting of incentives.  The Customs and Inland Revenue Departments administer exemptions through a clearly defined rule-based system, rather than the very open-ended incentive schemes that previously required each case to be approved at the cabinet level.

Under the new regime, incentives will be granted to projects within the priority sectors for investment.  They are tourism; manufacturing; agriculture and agribusiness; information technology services; telecommunication providers and business process outsourcing operations; education and training; health and wellness; creative industries; energy; and research and development.  Other sectors also include student accommodation; heavy equipment operators; investment projects above particular investment thresholds; and projects within specific geographical locations.

The new incentive regime seeks to provide investment incentives on a performance basis (i.e. the more one invests, the more incentives one can receive).  Therefore, based on the level of investment, different levels of incentives will be granted in a transparent, open, predictable, and non-discriminatory manner.

In the past three years, the government did not undergo any third-party investment policy reviews through multilateral organizations such as the Organization for Economic Cooperation and Development (OECD), the WTO, and the United Nations Conference on Trade and Development.

Business Facilitation

Political and economic stability, human resource capacity, supportive government policies, trade and investment opportunities, quality of life, and good infrastructure provide a positive environment for FDI in Grenada.

An investor must register a business name and identify whether it is a partnership or limited liability company.  A registered business can be wholly owned or a joint venture. The official website of the GIDC includes an investor’s guide that details the procedures for starting and operating a business in Grenada.  The guide has a business procedure flow chart and gives step-by-step instructions for various tasks from registering a business and owning properties to obtaining permits and licenses. Detailed information on business registration and timelines can be found at: http://grenadaidc.com/investor-centre/investors-guide/starting-up-a-business/#.WKxXdfnQe70  

The GIDC provides business facilitation mechanisms and ensures the equitable treatment of women and underrepresented minorities in the economy.

Outward Investment

The government of Grenada does not promote or incentivize outward investment.  However, under the Revised Treaty of Chagaramus, there are Rights of Establishment in any CARICOM member state.  There is also a chapter on service agreements under the European Partnership Agreement (EPA). Under certain circumstances, provisions in these agreements may offer incentives to the potential investor.  Grenada does not restrict domestic investors from investing abroad.

Bilateral Investment Treaties 

Bilateral Investment Agreements established between Grenada and several countries are designed to encourage and protect international investments and to ensure that investors receive fair, equitable, and nondiscriminatory treatment.  Bilateral Investment Treaties exist between Grenada and the United States as well as Grenada and the UK.

Grenada is a member of CARICOM, established by the Treaty of Chagaramus in 1973 to promote economic integration and development among its 15 member states.  The Revised Treaty of Chagaramus later established the CARICOM Single Market and Economy (CSME) to provide for the free movement of goods, services, capital, and labor within member states.

Grenada is also a member of CARIFORUM and party to the EPA between the EU and CARICOM member states.  This agreement aims to alleviate poverty, foster regional integration, promote economic cooperation, and propel CARIFORUM states’ entry into the world economy by creating an attractive investment climate and ensuring trade viability on the world market.

Grenada is also a member of the Caribbean-Canada Trade Agreement (CARIBCAN), an agreement between the Canadian government and the Commonwealth Caribbean nations to promote trade, investment, and industrial cooperation.  Treaties with investment provisions also exist through the CARICOM-Costa Rica free trade agreement (FTA), CARICOM-Cuba Cooperation Agreement, CARICOM-Dominican Republic FTA and CARICOM-Venezuela FTA.

There is also an agreement with the Caribbean Basin Initiative (CBI), an initiative created by the United States with the Caribbean and Central America to provide several trade and tariff benefits, among others.

Grenada, under the umbrella of CARICOM, is reviewing trade agreements with Cuba and the Dominican Republic in an effort to negotiate new market access and opportunities.

In 2018, Grenada signed a bilateral Open Skies Agreement with the United States.  This agreement replaces the 1946 Bermuda I Agreement, and ensures a more current, responsive, and beneficial arrangement that is reflective of modern civil aviation trends.  It will liberalize the aviation market, remove various restrictions, increase capacity and number of routes, and improve the ease of travel to and from Grenada by attracting additional air carriers and routes.

Bilateral Taxation Treaties 

Grenada passed legislation that will implement the Foreign Account Tax Compliance Act Inter-Governmental Agreement (FATCA) with the United States.  FATCA requires that information on U.S. citizens with accounts at local financial and credit institutions holding in excess of XCD USD 50,000 be shared with the U.S. Internal Revenue Service (IRS).  The legislation provides for the Competent Authority to be the Comptroller of Inland Revenue, who will communicate directly with the IRS. The Comptroller will mandate his/her staff to gather information from financial institutions to be divulged to the IRS.  According to the legislation, “failure to comply with such a request is a summary offence punishable by a fine not exceeding USD 100,000.”

The legislation also provides for the protection of privacy, stating that the Competent Authority must protect confidential account information. Other than FATCA, the United States does not have a tax treaty with Grenada.

Transparency of the Regulatory System

Grenada recognizes that investors value transparent rules and regulations dealing with investment.

The Investment Act and the new Investment Promotion Regime promote transparency by authorizing investment incentives to key sectors through the GIDC.  This helps to streamline processes, standardize treatment of investors, and better define investment rights. It also provides procedural guarantees and reduces the possibility for political influence in business negotiation.

Grenada also promotes investment by consulting with interested parties, simplifying and codifying legislation, using plain language drafting, developing registers of existing and proposed regulation, expanding the use of electronic dissemination of regulatory material, and publishing and reviewing administrative decisions.

Tax, labor, environment, health and safety, and other laws or policies do not distort nor impede investment.  In theory, bureaucratic procedures, including those for licenses and permits, are sufficiently streamlined and transparent.  In practice, local authorities recognize that the implementation of procedures can sometimes be slow.

Legal, regulatory, and accounting systems are generally transparent and consistent with international norms.  Public finances and debt obligations, including explicit and contingent liabilities, are also transparent and in keeping with international requirements.  There are clear institutional arrangements established to support the implementation of transparent regimes governing investment.

International Regulatory Considerations

Grenada has been a member of the WTO since 1996 and is a party to agreements established under the organization.  In pursuit of WTO compliance, Grenada recently signed, and is in the process of negotiating, trade and investment agreements that contain provisions better aligned with the provisions of the WTO.  Grenada is a member of CARICOM and the Caribbean Single Market Economy (CSME), which adheres to the international norms and regulatory standards outlined by the WTO.

Legal System and Judicial Independence

The Prime Minister and his cabinet have the executive authority to negotiate and sign international agreements and conventions with other states and international organizations.

Grenada’s judicial system is based on English common law.  The judiciary has four levels: the Magistrates Court, the High Court, the Eastern Caribbean Supreme Court, and the UK-based Privy Council.

The Magistrates Court primarily handles minor civil and criminal cases, while the High Court adjudicates cases under the purview of the Acts of Parliament.  Appeals from the Magistrates Court are heard by the High Court, while appeals from the High Court are heard by the Eastern Caribbean Supreme Court. The Eastern Caribbean Supreme Court is comprised of the Chief Justice, who serves as the Head of the Judiciary; four Justices of Appeal; nineteen High Court Judges; and three Masters, who are primarily responsible for procedural and interlocutory matters.  The Court of Appeal judges are based at the Court’s headquarters in Castries, Saint Lucia.

The Privy Council serves Grenada as the final Court of Appeal.  However, the Caribbean Court of Justice (CCJ) has compulsory and exclusive jurisdiction under Section 211 of the Revised Treaty of Chaguaramas, to which Grenada is a party.  The Treaty delineates rights and responsibilities within CARICOM to hear and decide disputes concerning the interpretation and application of the Treaty.

The judicial system remains independent of the executive branch, and judicial processes are generally competent, fair, and reliable.  Provisions are also made for appeals with the relevant court. Grenadian law also provides for the use of arbitration and mediation to resolve investment disputes.

Laws and Regulations on Foreign Direct Investment

The economy is supported by a strong legislative and regulatory framework that encourages FDI and promotes investment initiatives.  Grenada augmented the investment climate with a revitalization of its Citizenship by Investment (CBI) program. That program generated investments of XCD 81.1 million (USD 30.4 million) in 2017, providing financing for a number of developments in the tourism sector.

In 2016, parliament passed several legislative changes to promote investment:

• Value Added Tax Amendment Act – This Act amended the Value Added Tax Act Cap.333A to provide for VAT exemptions for qualifying investments in priority sectors and should be applied in conjunction with regulations made pursuant to the Investment Act of 2014 to determine what the priority sectors are for economic growth.
• Excise Tax Amendment Act – This Act amends the Excise Tax Act Cap. 94 to provide for tax incentives for investors engaged in manufacturing and investors entitled to conditional duties exemptions for motor vehicles.
• Property Transfer Tax Amendment Act – This Act amends the Property Transfer Tax Act Cap. 257C to provide more favorable rates of property transfer tax for investors. The Property Transfer Tax (Amendment) Act, 2015 (No. 23 of 2015) reduced the property transfer tax payable by non-citizens with qualifying investments from 10 percent to 5 percent.  This Act expands this incentive and would be applied in conjunction with regulations made pursuant to the Investment Act for the establishment of priority sectors for economic growth.
• Customs Service Charge Amendment Act – This Act amends the Customs (Service Charge) Act Cap. 75D to remove the discretionary power of cabinet to prescribe varying rates of customs service charge (CSC) and to prescribe a new rate of CSC applicable to investors engaged in manufacturing.
• Investment Amendment Act– This Act provides for specified circumstances under which the Minister of Finance may make regulations under the principal Act.
• Bankruptcy and Insolvency Amendment Act – This Act modernized the law relating to bankruptcy and insolvency of individuals and companies. The Bankruptcy Act, which applies only to individuals, was repealed.  Provisions in other Acts, such as the Companies Act, dealing with liquidation or winding up, continue to apply. The Act is based on the Canadian Bankruptcy and Insolvency Act, which has been used as a model in a number of Caribbean countries.
• Income Tax Amendment Act– This Act amended the Income Tax Act Cap. 149 to provide for a waiver on withholding tax applicable on specified types of repatriated funds relating to investors engaged in tourism accommodation or health and wellness, among other matters.

The GIDC, together with the Inland Revenue and Customs Departments of Grenada, works to ensure adherence to the rule of law and to facilitate the procedures outlined in the revised investment regime.  The legal and regulatory framework governing foreign direct investment in Grenada is described here: http://grenadaidc.com/investor-centre/investors-guide/starting-up-a-business/#.WLA0BfnQe70  

Competition and Anti-Trust Laws

There are no laws that regulate competition in Grenada.  However, Grenada discussed model draft bills at the CARICOM and Organization of Eastern Caribbean States (OECS) levels.  These drafts are being formulated to strengthen market regimes under the CSME. CARICOM established a Competition Commission and plans are underway to establish a sub-regional Eastern Caribbean Competition Commission.

Expropriation and Compensation

According to the Constitution, Grenada shall not compulsorily acquire or take possession of any investment or any asset of an investor except for a purpose which is legal and non-discriminatory.  If the government expropriates property for a legal purpose, it must promptly pay adequate and effective compensation. Owners of expropriated assets have the right to file claims in the High Court regarding the amount of compensation or ownership of the expropriated asset.  In 2016, parliament repealed the 1994 Electricity Supply Act and opened the market to potential investors who will transition to alternative sources of power generation, decreasing costs, reducing dependence on imported fossil fuels, and improving energy efficiency. The 2016 Electricity Supply Act allows a new government-run regulatory body to grant multiple licenses to energy generators.

In the past, Grenadian citizens had their lands expropriated to permit foreign investments, but were compensated for such actions.  There are no sectors at greater risk of expropriation, and there are no laws requiring local ownership. All expropriations have been subject to legal due process.

Dispute Settlement

ICSID Convention and New York Convention

Grenada is a signatory and contracting member of the International Center for Settlement of Investment Disputes since 1991, and has engaged this platform to resolve past disputes. While Grenadian laws have adapted the provisions outlined in the New York Convention, the country is not a contracting state and has not ratified the convention.

Investor-State Dispute Settlement

There were no known investment disputes involving a U.S. person over the past 10 years.

There is no history of extrajudicial action against foreign investors.

International Commercial Arbitration and Foreign Courts

In the event of an investment dispute between two foreign parties, between a foreign investor(s) and Grenadian parties, between Grenadian partners, or between investors and the government of Grenada, Grenadian law mandates that the parties shall first seek to settle their differences through consultation or mediation.  In the event that the parties fail to resolve the matter, they may then submit their dispute to arbitration; file a lawsuit in Grenadian courts; invoke the jurisdiction of the Caribbean Court of Justice; or adopt such other procedures as provided for in the Articles of Association of the investment enterprise.

There is no government interference in the court system.  Grenada participates in a court-connected mediation mechanism that can be accessed through the Mediation Centre.  This Centre was established by the statutory provisions of the Practice Direction Act No.1 of 2003. It extends court-connected mediation to all member states of the OECS and allows for civil actions filed in court to be referred to mediation.  Through this system, parties can utilize alternative dispute resolution mechanisms, including mediation, if the court deems them to be appropriate mechanisms for resolving the case.

Court-connected mediation, however, cannot be used in family proceedings, insolvency (including winding up of companies), non-contentious probate proceedings, proceedings when the High Court is acting as a prize court, and any other proceeding in the Supreme Court.

Bankruptcy Regulations

Grenada is ranked 168 out of 190 for ease of resolving insolvency in the World Bank’s Doing Business Report for 2019, the same ranking it received in 2018.

Chapter 27 of the Bankruptcy Act (Amended by Act No. 10 of 1990) makes provisions for all aspects of bankruptcy.  This was one of the laws recently amended under the new investment regime to modernize the law relating to bankruptcy and insolvency of individuals and companies.

Part III of this Act sets out what constitutes bankruptcy and the procedure for creditors to apply to the High Court for a bankruptcy order against a debtor and the appointment of a trustee in bankruptcy.  There are also provisions for the court to appoint an interim receiver pending the outcome of the application for a bankruptcy order.

Part III also has provision for a process whereby an insolvent person, with leave of the court, may make an assignment of the insolvent person’s property for the general benefit of creditors of the insolvent person.

The High Court exercises exclusive jurisdiction in matters related to bankruptcy.

Investment Incentives

Grenada provides a legal package of benefits and concessions for specific investment activities.  Incentives available include tax waivers, import duty exemptions, repatriation of profits, and withholding tax exemptions.

Trade-related incentives are notified under Article 25 and Article 27 of the Agreement on Subsidies and Countervailing Measures.  Concessions are available under the Income Tax Act, the Common External Tariff (SRO 42/09), the Property Transfer Act, the Petrol Tax Act, and the Customer Service Charge Act.

Incentives include accelerated depreciation (10 percent on physical plant and machinery; 2 percent on industrial buildings); investment allowance (100 percent write-off on total investment); carry forward of losses for three years; reductions in the property transfer tax; 100 percent relief from customs duties on physical plant, equipment, and raw materials; and deduction of expenditures incurred for training, research, and development.

Other incentives include no restrictions on foreign ownership; no restrictions on foreign currency transactions; and no restrictions on the repatriation of profits, capital, and dividends.  Certain incentives may be linked to the site of investment, the number of persons employed, or other factors. There was no instance that Grenada needed to review an approved investor for non-compliance with incentive requirements.

Grenada does not have a practice of issuing guarantees or jointly financing foreign direct investment projects.

Foreign Trade Zones/Free Ports/Trade Facilitation

There are no foreign trade zones or free ports in Grenada. However, there are various companies which offer duty free shopping for travelling customers.

Performance and Data Localization Requirements

CARICOM investors are accorded Rights of Establishment, while other foreign investors are required to obtain work permits and alien landholding licenses to invest in property.

The application fee for a work permit is XCD $100/USD $37 payable to the Work Permit Division of the Ministry of Labor.  Along with the completed application form, applicants must also submit four passport-sized photos, a police certificate of character from their country, certificates of qualification, and a letter of intention.  In addition, investors will need a character reference from a reputable person/former employer, a copy of the passport page indicating the last date of arrival in Grenada, a business registration certificate, company stamp, National Insurance Scheme compliance certificate, and recent tax compliance and VAT receipts.

The approval process takes two to three weeks, longer if there are questions, and is valid for one year.  U.S. investors and workers are required to pay USD $1,111 or XCD $3,000 per year for renewal.

There is no policy of “forced localization” of data storage and Grenada does not pressure international information and communications technology providers to provide source code or encryption keys.  The OECS and other stakeholders have begun to develop draft model laws on electronic regimes. Laws specific to data storage and protection have not yet made it onto the national legislative agenda.

There are no measures to prevent or impede companies from transmitting customer or business-related data outside the country. There are no performance requirements.  Investment incentives are applied uniformly to domestic and foreign investors on a case-by-case basis.

Real Property

The Aliens Landholding Regulation Act No. 29 of 1968 (last amended in 2009) is the primary legislative instrument governing the right to private ownership by non-citizens.  Investors may purchase or lease privately owned land and dispose of, or transfer, interests in the land under the Act. Investors may hold state lands by grant or lease from the state.

The 2011 appointment of a registrar who focuses specifically on property has reduced the time needed to transfer property in Grenada by almost half.

Property rights and interests are enforced under the Alien Landholding Regulation Act.  The only specific regulation regarding land lease or acquisition by a foreign or non-resident investor is the requirement to acquire an Alien Landholding License.  This is also provided under the Act. The application process is described on the following website: http://grenadaidc.com/investor-centre/investors-guide/starting-up-a-business/#.WLBEUvnQe70 

Before a deed is issued, there is a title search on the previous owner, followed by conveyance, and the registering of the property to a new owner.  A clear title must first be identified before the process moves forward. Once the landholder possesses a deed, the property remains legally theirs, occupied or not, until the deed is signed over to someone else.

Grenada ranked 146 out of 190 for the ease of registering property on the World Bank’s 2019 Doing Business Report.

Intellectual Property Rights

Intellectual property protection in Grenada is governed by the Patents Act (Cap. 227 of the Consolidated Laws of Grenada), the Trade Marks Act (Cap. 284 of the Consolidated Laws of Grenada), and the Copyright Act Cap. 32 of 1988 (Cap. 67 of the Consolidated Laws of Grenada).  Investors and investment enterprises can seek protection of their patents, trademarks, brand names, and copyrighted materials in printed, recorded, or electronic formats. Grenada is a member of the World Intellectual Property Organization (WIPO), the Paris Convention, the Berne Convention, and the Patent Cooperation Treaty.

Domestic legislation regarding intellectual property protection has not been fully amended to comply with the Trade-Related Aspects of Intellectual Property Rights (TRIPs) Agreement.  However, updates to existing legislation are currently being drafted and reviewed. The government of Grenada has implemented the Trademark Act No. 1 of 2012 and the Copyright Act of 2011.

The Patent Act of 2011 has been enacted but the implementing regulations are currently under review.

The geographic location bills have been drafted and are currently awaiting approval in parliament.  The Industrial Design Bill is reportedly a priority for 2020. Once these outstanding matters have been addressed, Grenada’s protection of intellectual property rights will be fully consistent with TRIPs.

Administration of intellectual property laws in Grenada is under the responsibility of the Ministry of Legal Affairs.

The registration of patents, trademarks, and copyrights is conducted at the Corporate and Intellectual Property Office.  Grenada operates a re-registration system based on registration in the United Kingdom. The Registration of the United Kingdom Patents Act, Cap. 283 and Grenada’s Patent Act No. 16 of 2011 govern Grenada’s system for registering patents.  In accordance with the legislation, based on Section 91 of the UK’s Patents and Design Act of 1907, any patent holder in the United Kingdom may apply within three years from the date of issue of the patent to have it registered in Grenada.

The United Kingdom Trade Marks Act, Cap. 284, authorizes any proprietor of a trademark in the United Kingdom to apply at any time during the existence of the registration to have it registered in Grenada.

Grenada is not listed in the 2019 Special 301 Report or on the Notorious Markets List.

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/  

Capital Markets and Portfolio Investment

Grenada possesses a robust legislative and policy framework that facilitates free flow of financial resources.  Its currency, the Eastern Caribbean dollar, has a fixed exchange rate established by the regional Eastern Caribbean Central Bank.  Foreign employees of investment enterprises and their families may repatriate their earnings after paying personal income tax and all other taxes due.  The government of Grenada encourages foreign investors to seek investment capital from financial institutions chartered outside Grenada due to the short domestic supply of capital.  Foreign investors are more likely to tap local financial markets for working capital.

The private sector has access to the limited number of credit instruments.  Grenadian stocks are traded on the Eastern Caribbean Securities Exchange, whose limited liquidity may pose difficulties in conducting transactions.

Money and Banking System

The Financial Industry in Grenada is regulated by two entities: the Eastern Caribbean Central Bank (ECCB) and the Grenada Authority for Regulation of the Financial Industry (GARFIN).  The ECCB regulates the banking system. GARFIN oversees non-banking financial institutions through a regulatory system that encourages and facilitates portfolio investment. The estimated total assets of the largest banks is USD $1.03 billion.  Information on the percentage of non-performing assets is not available. Grenada has not experienced cross-shareholding or hostile takeovers.

Foreign banks or branches are allowed to establish operations in Grenada subject to prudential measures and regulations governed by the ECCB.  For the requirements and procedures, foreign banks can refer to the following website: https://www.eccb-centralbank.org/p/grenada-1 

There is correspondent banking available with all licensed commercial banks.  No correspondent banking relationships have been lost in the past three years, nor is there any correspondent banking relationships in jeopardy currently.  There are no restrictions on a foreigner’s ability to establish a bank account.

In addition to the banking sector, there are alternative financial services provided through credit unions.  GARFIN regulates credit unions.

Foreign Exchange and Remittances

Foreign Exchange

Grenada’s currency is the Eastern Caribbean dollar issued by the ECCB located in Saint Kitts and Nevis. The exchange rate is also determined by the ECCB.  The Eastern Caribbean dollar is pegged to the U.S. dollar at 2.7, adding to the stability of trade and investment in Grenada. The national currency rate does not fluctuate.

There are no restrictions or limitations placed on foreign investors in converting, transferring, or repatriating funds associated with investment.  Funds associated with any form of investment can be freely converted into a number of currencies including U.S. dollar, pound sterling, Canadian dollar, and Euros.  However, banks reserve the right to delay transactions if deemed suspicious or outside the typical level of activity on the account.

Remittance Policies

There are no difficulties or delays regarding remittances and no proposed policy changes that would either tighten or relax access to foreign exchange for investment remittances.

Transfers of currency are protected by Article VII of the International Monetary Fund Articles of Agreement.  Grenada is also a member of the Caribbean Financial Action Task Force.

Sovereign Wealth Funds

Grenada does not have a sovereign wealth fund.

Corporate social responsibility (CSR), interchangeably used with responsible business conduct, is a concept that was introduced to Grenada relatively recently by multinational and regional corporations.  Local businesses are slowly incorporating this principle into their operations.

Some social responsibility initiatives undertaken by the private sector and non-governmental organizations (NGOs) include education programs, fitness programs, sporting activities, and cultural endeavors.  These are predominantly implemented by the telecommunication companies Digicel and LIME. There is also a recent push towards environmentally friendly business practices and project development.

While firms that promote CSR are more favorably viewed by the community, there is little familiarity with international CSR standards.  Activities are deemed to be responsible business conduct as long as they are lawful, not a threat to national security, and not detrimental to the environment, health, and culture of the Grenadian people.

There have been no high profile, controversial instances of private sector impact on human rights or resolution of such cases in the recent past.

Grenada effectively and fairly enforces domestic laws in relation to human rights, labor rights, consumer protection, environmental protection, and other laws/regulations intended to protect individuals from adverse business impacts.  Additionally, local labor unions play a role in promoting and monitoring responsible business conduct.

Grenada is a party to the Inter-American Convention against Corruption.  In 2013, parliament passed the Integrity in Public Life Act (Act No.24 of 2013), the country’s first anticorruption bill.  It requires that all public servants report their income and assets to the independent Integrity Commission for review.

The Ombudsman Act of 2007 established the Office of Ombudsman.  The country’s first Ombudsman since independence was appointed in September 2009.  The Office aims to provide effective service, handle complaints in a timely manner, and ensure the highest level of confidentiality and impartiality.

In 2017, the Ombudsman received 40 complaints, compared to 94 in 2016. Of the 40 complaints, six were closed, 28 are ongoing, advice was given for three, two were discontinued, and one was outside the Ombudsman’s jurisdiction.  The Royal Grenada Police Force received the highest number of complaints, totaling seven. Of those, four cases are ongoing while the other three were either closed, discontinued, or received advice.

Bribery is illegal in Grenada, and Grenadian officials take seriously any allegations.  The Integrity in Public Life Commission monitors and verifies disclosures, although disclosures are not made public except in court.  According to the provisions of the bill, failure to file a disclosure should be noted in the Official Gazette. If the office holder in question fails to file in response to this notification, the commission can seek a court order to enforce compliance.  For the most part, the enforcement of these laws and procedures are effective and are applied in a non-discriminatory manner.

Grenada is not party to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.  The country accepted and acknowledged the UN Convention against Corruption, but has not yet signed or ratified it.

U.S. firms have not identified corruption as an obstacle to FDI in Grenada.

Resources to Report Corruption

Contacts at government agency or agencies who are responsible for combating corruption:

Tafawa Pierre
Superintendent of Police/Head of FIU
Financial Intelligence Unit (FIU)
The Carenage, St. George’s, Grenada
Telephone: (473) 435-2373 / 2374
Email: gdafiu@spiceisle.com

Allison Miller
Acting Ombudsman
Office of the Ombudsman
Tanteen, St. George’s, Grenada
Telephone: (473) 435-9315
Email: ombudsmangd@spiceisle.com

Contact at “watchdog” organization:

Lady Anande Trotman-Joseph
Chairperson, Office of the Integrity Commission
Archibald Avenue, St. George’s, Grenada
Telephone: (473) 439-9212/ 534-5190
Email: office@grenadaintegritycommission.org

Grenada has a stable parliamentary representative democracy free from political violence.

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy

* Source for Host Country Data: Grenada Ministry of Finance Statistical Department. Data as of December 31, 2018.

Table 3: Sources and Destination of FDI

Information for Grenada is not available on the IMF’s Coordinated Direct Investment Survey (CDIS) site. Host country data is also not available.

Table 4: Sources of Portfolio Investment

Information for Grenada is not available on the IMF’s Coordinated Portfolio Investment Survey site for Sources of Portfolio Investment. Host country data is also not available.

Policies Towards Foreign Direct Investment

The government of St. Kitts and Nevis strongly encourages foreign direct investment (FDI), particularly in industries that create jobs, earn foreign currency, and have a positive impact on its citizens.  The country is home to the ECCB, the Eastern Caribbean Securities Exchange (ECSE), and the Eastern Caribbean Securities Regulatory Commission (ECSRC).

Through the St. Kitts Investment Promotion Agency (SKIPA), the government introduced a number of investment incentives for businesses that consider locating in St. Kitts and Nevis.  SKIPA provides “one-stop shop” facilitation services to investors, helping to guide them through the various stages of the investment process. Government policies provide liberal tax holidays, duty-free import of equipment and materials, and subsidies for training local personnel.

The St. Kitts and Nevis government encourages investment in all sectors, but targeted sectors include financial services, tourism, real estate, agriculture, information and communication technologies, international education services, renewable energy, ship registries, and limited light manufacturing.

Limits on Foreign Control and Right to Private Ownership and Establishment

There are no limits on foreign control in St. Kitts and Nevis.  Foreign investors may hold up to 100 percent of an investment. Local enterprises generally welcome joint ventures with foreign investors in order to access technology, expertise, markets, and capital.  There is no limit on the amount of foreign ownership or control in the establishment of a business.

Foreign investment in St. Kitts and Nevis is generally not subject to any restrictions, and foreign investors receive national treatment.  The only exception to this is the requirement to obtain an Alien Landholders License for foreign investors seeking to purchase property for residential or commercial purposes.

Other Investment Policy Reviews

The OECS, of which St. Kitts and Nevis is a member, has not conducted a trade policy review in the last three years.

Business Facilitation

Established in 2007, SKIPA facilitates domestic and foreign direct investment in priority sectors and advises the government on the formation and implementation of policies and programs to attract investment to St. Kitts and Nevis.  SKIPA provides business support services and market intelligence to all investors.

St. Kitts and Nevis ranks 95th of 190 countries in starting a business, which takes seven procedures and about 18.5 days to complete, according to the World Bank’s 2019 Doing Business Report.  It is not mandatory that an attorney prepare relevant incorporation documents. A business must register with the Financial Services Regulatory Commission, the Registrar of Companies, the Ministry of Finance, the Inland Revenue Department, and the Social Security Board.

The government of St. Kitts and Nevis supports the growth of women–led businesses.  The government encourages equitable treatment and support of women in the private sector through non-discriminatory processes for business registration, fiscal incentives, investment opportunities, and quality assessments.

Outward Investment

There is no restriction on domestic investors seeking to do business abroad.  Local companies in St. Kitts and Nevis are actively encouraged to take advantage of export opportunities specifically related to the country’s membership in the OECS Economic Union and the Caribbean Community Single Market and Economy (CSME), which enhance the competitiveness of the local and regional private sectors across traditional and emerging high-potential markets.

St. Kitts and Nevis does not have a bilateral investment treaty with the United States.  It has a Double Taxation Agreement with the United States, but this agreement is limited solely to social security benefits.  St. Kitts and Nevis’ Double Taxation Agreements meet Organization for Economic Cooperation and Development standards, as well as Tax Information Exchange Agreements (TIEAs) standards.  St. Kitts and Nevis maintains Double Taxation Agreements with several countries including Denmark, Norway, Sweden, and the UK. It has Double Taxation Conventions (DTCs) with Monaco, San Marino, and some CARICOM countries.

Caribbean Community

The Treaty of Chaguaramas established the Caribbean Community (CARICOM) in 1973 to promote economic integration among its fifteen member states.  Investors operating in Dominica have preferential access to the entire CARICOM market. The Revised Treaty of Chaguaramas goes further, establishing the CSME, which permits the free movement of goods, capital, and labor within CARICOM states.

Organization of Eastern Caribbean States

The Revised Treaty of Basseterre established the OECS.  The OECS consists of seven full members: Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines, and four associate members: Anguilla, Martinique, Guadeloupe and the British Virgin Islands. The purpose of the Treaty is to promote harmonization among member states concerning foreign policy, defense and security, and economic affairs.  The six independent countries of the OECS ratified the Revised Treaty of Basseterre, establishing the OECS Economic Union in 2011. The Economic Union established a single financial and economic space within which all factors of production, including goods, services, and people, move without hindrance.

Economic Partnership Agreement

The CARIFORUM states and the European Community signed an Economic Partnership Agreement (EPA) in 2008. The overarching objectives of the EPA are to alleviate poverty in CARIFORUM states, to promote regional integration and economic cooperation, and to foster the gradual integration of the CARIFORUM states into the world economy by improving their trade capacity and creating an investment-conducive environment.  The Agreement promotes trade-related developments in areas such as competition, intellectual property, public procurement, the environment, and protection of personal data.

Caribbean Basin Initiative

The objective of the Caribbean Basin Initiative (CBI) is to promote economic development through private sector initiatives in Central America and the Caribbean islands by expanding foreign and domestic investment in non-traditional sectors, diversifying CBI country economies, and expanding exports.  It permits duty-free entry of products manufactured or assembled in Dominica into the United States.

Caribbean/Canada Trade Agreement

The Caribbean/Canada Trade Agreement (CARIBCAN) is an economic and trade development assistance program for Commonwealth Caribbean countries in which Canada provides duty-free access to its national market for the majority of products originating in Commonwealth Caribbean countries.

Transparency of the Regulatory System

The government of St. Kitts and Nevis provides a legal framework to foster competition and establish clear rules for foreign and domestic investors in the areas of tax, labor, environment, health, and safety.  The Ministry of Finance and SKIPA provide oversight of the system’s transparency as it relates to investment. While officially all sectors are open to attracting foreign investment, potential investors should be aware that U.S. companies have reported that the government of St. Kitts and Nevis has a history of expropriation practices that could put investments at risk.

Additionally, the incorporation and registration of companies in country differs somewhat on its two constituent islands.  In St. Kitts, the Companies Act regulates the process. On Nevis, the Nevis Island Business Corporation Ordinance regulates the incorporation of companies.  There are no nationality restrictions for directors in a company, and in general, national treatment is applied. All registered companies must have a registered office in St. Kitts and Nevis.

Rulemaking and regulatory authority lies with the unicameral parliament of St. Kitts and Nevis.  The parliament consists of 11 members elected in single-seat constituencies (eight from St. Kitts and three from Nevis) for a five-year term.

Although St. Kitts and Nevis does not have legislation that guarantees access to information or freedom of expression, access to information is generally available in practice.  The government maintains an information service and a website, where it posts information such as directories of officials and a summary of laws and press releases. The government budget is available on the website: https://www.gov.kn/  .  Accounting, legal, and regulatory procedures are generally transparent and consistent with international norms.  The International Financial Accounting Standards, which stem from the General Accepted Accounting Principles, govern the accounting profession in St. Kitts and Nevis.

The independent Office of the Ombudsman guards against excesses by government officers in the performance of their duties.  The Ombudsman is responsible for investigating any complaint relating to any decision or act of any government officer or body in any case in which a member of the public claims to be aggrieved or appears to the Ombudsman to be the victim of injustice as a result of the exercise of the administrative function of that officer or body.

At the national level, the relevant ministry reviews and recommends the legal authority that would enable it to perform at the desired levels to reach optimum development objectives.  Ministries then submit these reviews to the Ministry of Justice, Legal Affairs and Communications for the preparation of the draft legislation. Subsequently, the Ministry of Justice, Legal Affairs and Communications reviews all agreements and legal commitments (national, regional and international) to be undertaken by St. Kitts and Nevis to ensure consistency prior to finalization.  SKIPA has the main responsibility for investment supervision, whereas the Ministry of Finance monitors investments to collect information for national statistics and reporting purposes.

St. Kitts and Nevis’ membership in regional organizations, particularly the OECS and its Economic Union, commits the state to implement all appropriate measures to ensure the fulfillment of its various treaty obligations.  For example, the Banking Act, which establishes a single banking space and the harmonization of banking regulations in the Economic Union, is uniformly in force in the eight member territories of the ECCU, although there are some minor differences in implementation from country to country.

The enforcement mechanisms of these regulations include penalties or legal sanctions.

International Regulatory Considerations

As a member of the OECS and the Eastern Caribbean Customs Union (ECCU), St. Kitts and Nevis subscribes to a set of principles and policies outlined in the Revised Treaty of Basseterre.  The relationship between national and regional systems is such that each participating member state is expected to coordinate and adopt common national policies aimed at the progressive harmonization of relevant policies and systems across the region. Thus, St. Kitts and Nevis is generally obligated to implement regionally developed regulations.

The St. Kitts and Nevis Bureau of Standards develops, establishes, maintains, and promotes standards for improving industrial development, industrial efficiency, the health and safety of consumers, the environment, food and food products, and the facilitation of trade.  It also conducts national training and consultations in international standards practices. As a signatory to the World Trade Organization (WTO) Agreement on the Technical Barriers to Trade, St. Kitts and Nevis, through the St. Kitts and Nevis Bureau of Standards, is obligated to harmonize all national standards to international norms to avoid creating technical barriers to trade.

St. Kitts and Nevis ratified the WTO Trade Facilitation Agreement (TFA) in 2016.  The TFA aims to improve the speed and efficiency of border procedures, facilitate reductions in trade costs, and enhance participation in the global value chain.  St. Kitts and Nevis has already implemented a number of TFA requirements. A full list is available at: https://www.tfadatabase.org/members/saint-kitts-and-nevis/measure-breakdown   . St. Kitts and Nevis ranks 68th out of 190 countries in trading across borders in the World Bank’s 2019 Doing Business Report.

Legal System and Judicial Independence

St. Kitts and Nevis bases its legal system on the British common law system.  The Attorney General, the Chief Justice of the Eastern Caribbean Supreme Court (ECSC), junior judges, and magistrates administer justice.  The Eastern Caribbean Supreme Court Act establishes the Supreme Court of Judicature, which consists of the High Court and the Eastern Caribbean Court of Appeal.  The High Court hears criminal and civil matters and makes determinations on constitutional matters. Parties may appeal first to the ECSC, an itinerant court that hears appeals from all OECS members.  Final appeal is to the Judicial Committee of the Privy Council of the UK.

The Caribbean Court of Justice (CCJ) is the regional judicial tribunal, established in 2001.  The CCJ has original jurisdiction to interpret and apply the Revised Treaty of Chaguaramas. In its appellate jurisdiction, the Caribbean Court of Justice considers and determines appeals from Member States of CARICOM, which are parties to the Agreement Establishing the Caribbean Court of Justice.  Currently, St. Kitts and Nevis is subject only to the original jurisdiction of the Caribbean Court of Justice.

The United States and St. Kitts and Nevis are both parties to the WTO.  The WTO Dispute Settlement Panel and Appellate Body resolve disputes over WTO agreements, while courts of appropriate jurisdiction in both countries resolve private disputes.

Laws and Regulations on Foreign Direct Investment

St. Kitts and Nevis’ FDI policy is to attract FDI into the priority sectors as identified under the National Diversification Strategy.  These include financial services, tourism, real estate, agriculture, information technology, education services, and limited light manufacturing.  However, investment opportunities also exist in renewable energy and other services. The main laws concerning foreign investment include the Fiscal Incentive Act, the Hotels Aid Act, and the Companies Act.

The SKIPA provides “one-stop shop facilitation” services to investors to guide them through the various stages of the investment process.  SKIPA has a website that is useful in navigating the laws, rules, procedures, and registration requirements for foreign investors: www.investstkitts.kn  .

Under St. Kitts and Nevis’ CBI program, foreign individuals can obtain citizenship without voting rights by investment. Applicants are required to undergo a due diligence process before citizenship can be granted.  A minimum investment for a single investor to qualify is USD 200,000 in real estate or a USD 150,000 contribution to the Sustainable Growth Fund. Applicants must also provide a full medical certificate and evidence of the source of funds.  Applications for CBI status for real estate projects should be submitted to the SKIPA for review and processing. Further information is available at: http://www.ciu.gov.kn/  .

Competition and Anti-Trust Laws

Chapter 8 of the Revised Treaty of Chaguaramas outlines the competition policy applicable to CARICOM States.  Member states are required to establish and maintain a national competition authority for implementing the rules of competition.  CARICOM established a Caribbean Competition Commission to apply rules of competition regarding anti-competitive cross-border business conduct.  CARICOM competition policy addresses anti-competitive business conduct such as agreements between enterprises, decisions by associations of enterprises, and concerted practices by enterprises that have as their object or effect the prevention, restriction, or distortion of competition within CARICOM, and actions by which an enterprise abuses its dominant position within CARICOM.  St. Kitts and Nevis does not have domestic legislation regulating competition. The OECS agreed to establish a regional competition body to handle competition matters within its single market. The draft OECS bill is with the Ministry of Ministry of Justice, Legal Affairs and Communications for review.

Expropriation and Compensation

St. Kitts and Nevis uses eminent domain laws allowing the government to expropriate private property.  The government is required to compensate owners. There are also laws that permit the acquisition of private businesses, and the government claims such laws are constitutional.  The concept of eminent domain and the expropriation of private property is typically governed by laws that require governments to adequately compensate owners of the expropriated property at the time of its expropriation or soon thereafter.  In some cases, many businesses note that the procedure for compensation of owners favors the government valuation.

The U.S. Embassy in Bridgetown is aware of one outstanding case involving the seizure of private land by the government.  The previous government agreed to pay the U.S. citizen claimant in installments and completed the first two installments. According to certain companies, the current government defaulted on two installments.  Although a court in St. Kitts and Nevis ordered the government to complete the 2015 and 2016 installments, the government has yet to do so. The government claims another individual made a claim on the property, and that it must wait until a court determines the outcome of the other claim before completing payments to the U.S. citizen owner.

Dispute Settlement

ICSID Convention and New York Convention

St. Kitts and Nevis is a party to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States.  However, it is not a member of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, also known as the New York Arbitration Convention.  The Arbitration Act is the main legislation that governs arbitration in St. Kitts and Nevis. St. Kitts and Nevis adheres to the New York Arbitration Convention.

Investor-State Dispute Settlement

Investors are permitted to use national or international arbitration for contracts entered into with the state.  St. Kitts and Nevis does not have a Bilateral Investment Treaty or a Free Trade Agreement with an investment chapter with the United States.

The country ranks 51st out of 190 countries in enforcing contracts in the 2019 World Bank Doing Business Report.  According to the report, dispute resolution in St. Kitts and Nevis generally took an average of 578 days with a cost of claim of 26.6 percent.  The slow court system and bureaucracy are widely seen by foreign investors as main hindrances to timely resolution of commercial disputes. Through the Arbitration Act, the local courts recognize and enforce foreign arbitral awards issued against the government.

International Commercial Arbitration and Foreign Courts

The ECSC is the domestic arbitration body.  Local courts recognize and enforce foreign commercial arbitral awards.  International commercial arbitration in St. Kitts and Nevis is applied under the Arbitration Act.  The Eastern Caribbean Court of Appeal also provides mediation.

Bankruptcy Regulations

St. Kitts and Nevis has a bankruptcy framework that grants certain rights to debtor and creditor.  The 2019 Doing Business Report ranks St. Kitts and Nevis 168th of 190 countries in this area.

Investment Incentives

In an effort to increase investment in the country, the government of St. Kitts and Nevis implemented a series of investment incentives codified in the Fiscal Incentives Act.   The Fiscal Incentives Act provides incentives that include a tax holiday of up to 15 years, additional tax rebates of up to five years, exemption from customs duties on material and equipment deemed necessary to establish or update an enterprise, repatriation of profits, dividends, royalties, and imported capital by arrangement with the Ministry of Finance, protection of investment through government agreement, and no personal income tax.  Four types of enterprises qualify for tax holidays. The length of the tax holiday for the first three depends on the amount of value added in St. Kitts and Nevis. The fourth type, known as enclave industry, must produce goods exclusively for export outside the CARICOM region.

Companies that qualify for tax holidays are allowed to import into St. Kitts and Nevis duty-free all equipment, machinery, spare parts, and raw materials used in production.

The Hotels Aid Act provides relief from customs duties on items brought into the country for use in the construction, extension, and equipping of a hotel of not less than ten bedrooms.  In addition, the Income Tax Act provides special tax relief benefits for hotels of more than 30 bedrooms. These hotels are exempt from income tax for ten years. If the hotel contains fewer than 30 bedrooms, gains or profits would be exempt from income tax for five years.

Value Added Tax is levied on the total accommodation charges of a hotel or guest house and on the cost of food and beverages sold by a restaurant.  This total tax rate is 10 percent.

Investors in St. Kitts and Nevis do not pay a capital gains tax.  Qualified companies enjoy full exemption from taxes on corporate profits for a period not exceeding 15 years.  Corporate tax does not apply to exempt companies or to enterprises that were granted tax concessions. There is no personal income tax.  Additional tax concessions are available at the end of the tax holiday period.

Normally, individuals and ordinary companies remitting payments to parties outside St. Kitts and Nevis must deduct 10 percent withholding tax from profits, administration, management or head office expenses, technical services fees, accounting and audit expenses, royalties, non-life insurance premiums, and rent.  However, this tax does not apply to profits of an approved enterprise such as exempt trusts, limited partnerships, companies, or foundations.

The Unincorporated Business Tax Act mandates a levy on the gross revenue of services provided by professionals such as doctors, lawyers, dentists, and other specified persons listed in the schedule at a rate of 4 percent.

Foreign Trade Zones/Free Ports/Trade Facilitation

There are no foreign trade zones or free ports in St. Kitts and Nevis. However, there are four fully developed industrial sites where production facilities can be constructed to specifications and leased at nominal rates.  The Development Bank of St. Kitts and Nevis manages and services the sites on behalf of the government.

Performance and Data Localization Requirements

St. Kitts and Nevis does not mandate local employment.  The provisions of the Labor Code outline the requirements for acquiring a work permit and prohibit anyone who is not a citizen of St. Kitts and Nevis or the OECS from engaging in employment without a work permit.  There is a practice that when St. Kitts and Nevis grants work permits to senior management because no qualified nationals are available for the post, the government may recommend a counterparty trainee who is a citizens.  There are no excessively onerous visa, residency, or work permit requirements.

As a member of the WTO, St. Kitts and Nevis is party to the Agreement to the Trade Related Investment Measures.  While there are no formal performance requirements, government officials encourage investments they believe will create jobs and increase exports and foreign exchange earnings.  There are no requirements for participation either by nationals or by the government in foreign investment projects. There is no requirement that enterprises must purchase a fixed percentage of goods from local sources, but the government encourages local sourcing.  Foreign investors may hold up to 100 percent of an investment. Except for the requirement to obtain an Alien Landholders License, foreign investment in St. Kitts and Nevis is not subject to any restrictions, and foreign investors receive national treatment. There are no requirements for foreign information technology providers to turn over source code and/or provide access to surveillance (backdoors into hardware and software turn over keys for encryption, etc.)

Real Property

Civil law protects physical property and mortgage claims.  Foreign investors are required to obtain an Alien Landholders License to purchase property for residential or commercial purposes. The cost of these licenses is USD 371.  The Alien Landholders License Tax is 10 percent of the value of the land. Cabinet grants these licenses. Foreign investors are not required to pay the Alien Landholders License Tax in certain parts of the island, such as Frigate Bay or certain parts of the South East Peninsula.  Please contact SKIPA for further details. St. Kitts and Nevis ranks 185th of 190 countries in registering property in the World Bank’s 2019 Doing Business Report.

Intellectual Property Rights

St. Kitts and Nevis has a legislative framework supporting its commitment to the protection of intellectual property rights (IPR).  While the legal structures governing IPR are adequate, enforcement could be strengthened. The administration of IPR laws in St. Kitts and Nevis is under the responsibility of the Ministry of Justice, Legal Affairs and Communications.  The Intellectual Property Office oversees the registration of patents, trademarks, and service marks.

St. Kitts and Nevis is a signatory to the Paris Convention for the Protection of Industrial Property, the Patent Cooperation Treaty, and the Berne Convention for the Protection of Literary and Artistic Works.  St. Kitts and Nevis is also a member of the UN World Intellectual Property Organization (WIPO).

Article 66 of the Revised Treaty of Chaguaramas (2001) establishing the Caribbean Single Market and Economy (CSME) commits all 15 members to implement stronger IPR protection and enforcement.  The Economic Partnership Agreement (EPA) between the CARIFORUM States and the European Community contains the most detailed obligations regarding IPR in any trade agreement to which St. Kitts and Nevis is a party.  The EPA gives recognition to the protection and enforcement of IPR. Article 139 of the EPA requires parties to “ensure an adequate and effective implementation of the international treaties dealing with intellectual property to which they are parties and of the [World Trade Organization (WTO)] Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).”

The Customs Department of St. Kitts and Nevis can seize prohibited or counterfeit goods.  However, the courts rule on the forfeiture and disposal of such goods. Complainants make arrangements with Customs to secure the goods until a judgment is rendered.  St. Kitts and Nevis is in the process of reviewing its existing laws in relation to the importation of counterfeit and prohibited goods.

St. Kitts and Nevis is not included in the United States Trade Representative (USTR) Special 301 Report or Notorious Markets List.

For additional information about treaty obligations and points of contact at local intellectual property offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/   .

Capital Markets and Portfolio Investment

St. Kitts and Nevis is a member of the ECCU, and as such, it is also a member of the ECSE and the Regional Government Securities Market.  The ECSE is a regional securities market established by the ECCB and licensed under the Securities Act of 2001, a uniform regional body of legislation governing the buying and selling of financial products for the eight member territories. In 2018, the ECSE listed 135 securities, comprising 112 sovereign debt instruments, 14 equities, and nine corporate bonds.  Market capitalization stood at USD 3.07 billion. St. Kitts and Nevis is open to portfolio investment.

St. Kitts and Nevis accepted the obligations of Article VIII of the International Monetary Fund Agreement, Sections 2, 3 and 4, and maintains an exchange system free of restrictions on making payments and transfers for current international transactions.  The private sector has access to credit on the local market through loans, purchases of non-equity securities, trade credits and other accounts receivable that establish a claim for repayment.

Money and Banking System

The eight participating governments of the ECCU have passed the Eastern Caribbean Central Bank Agreement Act.  The Act provides for the establishment of the ECCB, its management and administration, its currency, relations with financial institutions, relations with the participating governments, foreign exchange operations, external reserves, and other related matters.  St. Kitts and Nevis is a signatory to this agreement, and the ECCB controls St. Kitts and Nevis’s currency and regulates its domestic banks.

Domestic and foreign banks can establish operations in St. Kitts and Nevis.  The Banking Act requires all commercial banks and other institutions to be licensed in order to conduct any banking business.   The ECCB regulates financial institutions. As part of ongoing supervision, licensed financial institutions are required to submit monthly, quarterly, and annual performance reports to the ECCB.  In its latest annual report, the Eastern Caribbean Central Bank listed the commercial banking sector as stable. Assets of commercial banks totaled USD 2.8 billion at the end of December 2018 and remained relatively consistent during the previous year.  The reserve requirement for commercial banks was 6 percent of deposit liabilities.

St. Kitts and Nevis is well served by bank and non-bank financial institutions.  There are minimal alternative financial services. Some citizens still participate in informal community group lending.

The Caribbean region has witnessed a withdrawal of correspondent banking services by U.S. and European banks.  CARICOM remains committed to engaging with key stakeholders on the issue and appointed a Committee of Ministers of Finance on Correspondent Banking to monitor the issue.

In March 2019, the ECCB launched an 18-month financial technology pilot to launch a Digital Eastern Caribbean dollar (DXCD) with its partner, Barbados-based Bitt Inc.  The ECCB will work closely with Bitt to develop, deploy, and test technology focusing on data management, compliance, and transaction monitoring systems for know your customer, anti-money laundering, and combating the financing of terrorism.  The goal of the pilot is to improve the risk profile of the ECCU and mitigate against the trend of de-risking by the region’s correspondent banking partners. The pilot will also focus on developing a secure, resilient digital payment and settlement platform with embedded regional and global compliance.  The digital Eastern Caribbean currency will operate alongside physical Eastern Caribbean currency. The ECCB will issue the DXCD to licensed bank and non-bank financial institutions on a private blockchain platform.

Foreign Exchange and Remittances

Foreign Exchange

St. Kitts and Nevis is a member of the ECCU and the ECCB.  The currency of exchange is the Eastern Caribbean Dollar (XCD).  As a member of the OECS, St. Kitts and Nevis has a fully liberalized foreign exchange system.  The XCD was pegged to the United States dollar at a rate of XCD 2.70 to USD 1.00 in 1976. As a result, the XCD does not fluctuate, creating a stable currency environment for trade and investment in St. Kitts and Nevis.

Remittance Policies

Companies registered in St. Kitts and Nevis have the right to repatriate all capital, royalties, dividends, and profits.  There are no restrictions on the repatriation of dividends for totally foreign-owned firms. However, a mixed foreign-domestic company may repatriate profits to the extent of its foreign participation.

There are no exchange controls in St. Kitts and Nevis and the invoicing of foreign trade transactions are allowed in any currency.  Importers are not required to make prior deposits in local funds and export proceeds do not have to be surrendered to government authorities or to authorized banks.  There are no controls on transfers of funds. St. Kitts and Nevis is a member of the Caribbean Financial Action Task Force.

In 2016, the government signed an Intergovernmental Agreement in observance of FATCA, making it mandatory for banks in St. Kitts and Nevis to report the banking information of U.S. citizens.

Sovereign Wealth Funds

Neither the government of St. Kitts and Nevis, nor the ECCB, of which St. Kitts and Nevis is a member, maintains a sovereign wealth fund.

The private sector is involved in projects that benefit society, including in support of environmental, social and cultural causes.  Individuals benefit from business-sponsored initiatives when local and foreign owned enterprises pursue volunteer opportunities and make monetary or in-kind donations to local causes.

The non-governmental organization (NGO) community, while comparatively small, is involved in fundraising and volunteerism in gender, health, environmental, and community projects.  The government at times partners with NGOs in activities. The government encourages philanthropy.

The law provides criminal penalties for official corruption, and the government generally implemented these laws effectively.

Government agencies involved in enforcement of anti-corruption laws include the Royal St. Kitts and Nevis Police Force, the Director of Public Prosecutions, and the Financial Intelligence Unit.  The Financial Intelligence Unit investigates financial crimes, but no independent body was established to handle allegations of government corruption.

Resources to Report Corruption

Contact at government agency responsible for combating corruption:

Simone Bullen-Thompson
Solicitor-General
Legal Department
Church Street, Basseterre, St. Kitts and Nevis
Email: simone_bullen@hotmail.com

St. Kitts and Nevis does not have a recent history of politically motivated violence or civil disturbance.

Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy

* Source for Host Country Data: Eastern Caribbean Central Bank https://www.eccb-centralbank.org/statistics/dashboard-datas/  . All ECCB GDP figures for 2018 are currently estimates.

Table 3: Sources and Destination of FDI

St. Kitts and Nevis does not appear in the IMF’s Coordinated Direct Investment Survey (CDIS).

Table 4: Sources of Portfolio Investment

St. Kitts and Nevis does not appear the IMF Coordinated Portfolio Investment Survey (CPIS).

Policies Towards Foreign Direct Investment

The government of St. Vincent and the Grenadines, through Invest SVG, strongly encourages FDI in the country, particularly in industries that create jobs and earn foreign currency.  St. Vincent and the Grenadines is an emerging and developing investment player. The government is open to all investment, but is currently prioritizing investment in niche markets, particularly tourism, international financial services, agro-processing, light manufacturing, creative industries, and information and communication technologies.

Invest SVG’s FDI policy is to attract investment into the aforementioned priority sectors, and advise the government on the formation and implementation of policies and programs that attract and facilitate investment.  The government offers special incentive packages for foreign investments in the hotel industry and light manufacturing. The government offers other incentive packages on an ad hoc basis.

The government’s principal goal in opening the new Argyle International Airport was to increase tourism.  Tourism totals about 6 percent of GDP and is expected to increase over the next ten years. St. Vincent and the Grenadines benefits from a low inflation rate and growing opportunities in the trade and export sectors.

Limits on Foreign Control and Right to Private Ownership and Establishment

There are no limits on foreign control in St. Vincent and the Grenadines, nor are there requirements for local involvement or ownership in locally registered companies, although non-nationals must apply for a license from the Prime Minister’s Office to acquire more than 50 percent of a company.  An attorney must submit the application and Cabinet must approved it. Companies holding at least five acres of land may restrict or prohibit the issue or transfer of their shares or debentures to non-nationals.

Invest SVG evaluates all FDI proposals and offers intelligence, business facilitation, and investment promotion to establish and expand profitable investment projects.  Invest SVG advises the government on issues that are important to the private sector to ensure that the business climate continues to improve and attract further investment.

The government has not officially closed any industries to private enterprise, although some activities such as telecommunications, utilities, broadcasting, banking, and insurance require a government license.

Other Investment Policy Reviews

The OECS, of which St. Vincent and the Grenadines is a member, has not conducted a trade policy review in the last three years.

Business Facilitation

Established in 2003 under the Companies Act, Invest SVG facilitates domestic and foreign direct investment in priority sectors and advises the government on the formation and implementation of policies and programs to attract investment.  Invest SVG provides business support services and market intelligence to all investors. It also reviews all investment projects applying for government incentives to ensure they conform to national interests and provide economic benefits to the country.  Invest SVG offers an online resource that is useful for navigating the laws, rules, procedures, and registration requirements for foreign investors. It is available at http://www.investsvg.org  .

According to the World Bank’s 2019 Doing Business Report, St. Vincent and the Grenadines ranks 88th of 190 countries in the ease of starting a business, which takes seven procedures and 10 days to complete.  The general practice is to retain an attorney to prepare all incorporation documents. A business must register with the Commerce and Intellectual Property Office, the Ministry of Trade, the Inland Revenue Department, and the National Insurance Service.  The Commerce and Intellectual Property Office (CIPO) has an online information portal that describes the steps to register a business in St. Vincent and the Grenadines. There is no online registration process, but the required forms are available online.  These must be printed and submitted to the CIPO. More information is available at http://www.cipo.gov.vc  .

Outward Investment

There is no restriction on domestic investors seeking to do business abroad.  Local companies in are actively encouraged to take advantage of export opportunities specifically related to the country’s membership in the OECS Economic Union and the Caribbean Community Single Market and Economy (CSME), which enhance the competitiveness of the local and regional private sectors across traditional and emerging high-potential markets.

St. Vincent and the Grenadines has not signed a bilateral investment treaty with the United States.  However, the country does have bilateral tax treaties with the United States, Canada, the United Kingdom, Denmark, Norway, Sweden, and Switzerland.  In 1989, Germany and St. Vincent and the Grenadines signed a treaty for the Encouragement and Reciprocal Protection of Investment. In 2018, St. Vincent and the Grenadines and the United Arab Emirates concluded an Agreement on the Avoidance of Double Taxation on Income and an Agreement for the Promotion and Protection of Investments.  Its purpose is to promote favorable investment conditions between the two states. St. Vincent and the Grenadines is also party to the following economic communities and organizations:

Caribbean Community

The Treaty of Chaguaramas established the Caribbean Community (CARICOM) in 1973.  Its purpose is to promote economic integration among its 15 member states. Investors operating in St. Vincent and the Grenadines have preferential access to the entire CARICOM market.  The Revised Treaty of Chaguaramas goes further, establishing the CSME and permitting the free movement of goods, capital, and labor within CARICOM states.

Organization of Eastern Caribbean States

The Revised Treaty of Basseterre establishes the Organization of Eastern Caribbean States (OECS).  The OECS consists of seven full members (Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines), and three associate members (Anguilla, Martinique, and the British Virgin Islands).  Guadeloupe signed an accession agreement with the OECS in March 2019. The purpose of the Treaty is to promote harmonization among member states in foreign policy, defense and security, and economic affairs. The six independent countries ratified the Revised Treaty of Basseterre establishing the OECS Economic Union, which entered into force in 2011.  The Economic Union established a single financial and economic space within which all factors of production, including goods, services, and people, move without hindrance.

Economic Partnership Agreement

The Caribbean Forum of the African, Caribbean and Pacific Group of States (CARIFORUM) and the European Community signed an Economic Partnership Agreement (EPA) in 2008.  The overarching objectives of the EPA are to alleviate poverty in CARIFORUM state, to promote regional integration and economic cooperation, and to foster the gradual integration of CARIFORUM states into the world economy by improving their trade capacity and creating an investment-conducive environment.  The Agreement promotes trade-related developments in areas such as competition, intellectual property, public procurement, the environment, and protection of personal data.

Caribbean Basin Initiative

The objective of the Caribbean Basin Initiative (CBI) is to promote economic development through private sector initiatives in Central America and the Caribbean islands by expanding foreign and domestic investment in non-traditional sectors, diversifying CBI country economies, and expanding their exports.  It permits duty-free entry of products manufactured or assembled in St. Vincent and the Grenadines into U.S. markets.

Caribbean/Canada Trade Agreement

Caribbean/Canada Trade Agreement (CARIBCAN) is an economic and trade development assistance program for Commonwealth Caribbean countries in which Canada provides duty free access to its national market for the majority of products originating in Commonwealth Caribbean countries.

Transparency of the Regulatory System

St. Vincent and the Grenadines uses transparent policies and laws to foster competition and establish clear rules for foreign and domestic investors in the areas of tax, labor, environment, health, and safety.  Accounting, legal, and regulatory procedures are generally transparent and consistent with international norms. The International Financial Accounting Standards, which stem from the General Accepted Accounting Principles, govern the profession in St. Vincent and the Grenadines.

Rulemaking and regulatory authority rests in the unicameral House of Assembly, which has fifteen elected members and six appointed senators who sit for a five-year term.  The Public Accounts Committee and Director of Audits ensure the government follows administrative processes.

National laws govern all regulations relating to foreign investment.  Ministries develop these laws and the Ministry of Legal Affairs drafts them.  Laws pertaining to Invest SVG also govern FDI. Invest SVG has the main responsibility for investment supervision, while the Ministry of Economic Planning, Sustainable Development, Industry, Information and Labor tracks investments to collect information for national statistics and reporting purposes.

The laws of St. Vincent and the Grenadines are not available online.

The government publishes most draft bills in local newspapers for public comment.  In addition, the government circulates bills at stakeholder meetings. The government sometimes establishes a select committee to suggest amendments to specified draft bills.  In some instances, these mechanisms may also apply to investment laws and regulations. There is no obligation for the government to consider proposed amendments prior to implementation.

The country’s membership in regional organizations, particularly the OECS and its Economic Union, commits the state to implement all appropriate measures to fulfill its various treaty obligations.  For example, the Banking Act, which establishes a single banking space and the harmonization of banking regulations in the Economic Union, is uniformly in force in the eight member territories of the ECCU, although there are some minor differences in implementation from country to country. The most recent Caribbean Financial Action Task Force (CFATF) Mutual Evaluation assessment found St. Vincent and the Grenadines to be largely compliant. The ECCB is the supervisory authority over financial institutions registered under the Banking Act of 2015.

An external company must be registered with the Commercial Registry in St. Vincent and the Grenadines if it wishes to operate in the country.  Companies using or manufacturing chemicals must first obtain approval of their environmental and health practices from the St. Vincent and the Grenadines National Standards Institution and the Environmental Division of the Ministry of Health.

International Regulatory Considerations

As a member of the OECS and the ECCU, St. Vincent and the Grenadines subscribes to a set of principles and policies outlined in the Revised Treaty of Basseterre.  The relationship between national and regional systems is such that each participating member state is expected to coordinate and adopt, where possible, common national policies aimed at the progressive harmonization of relevant policies and systems across the region. Thus, the country must implement regionally developed regulations, such as legislation passed under the OECS Authority, unless it seeks specific concessions not to do so.

The country’s Bureau of Standards is a statutory body established under the Standards Act of 1992 to prepare and promulgate standards in relation to goods, services, processes, and practices. As a signatory to the World Trade Organization’s (WTO) Agreement on the Technical Barriers to Trade, St. Vincent and the Grenadines must harmonize all national standards to international norms to avoid creating technical barriers to trade.

St. Vincent and the Grenadines ratified the WTO Trade Facilitation Agreement (TFA) in January 2017 and subsequently notified its Category A measures.  Included in the Trade Facilitation Agreement are measures to improve risk management techniques and a post-clearance audit system to eliminate delays and congestion at the port.  Implementation of these measures would feed into a single window system that will contribute to the elimination of duplication and quicker clearance times by establishing a single interface for traders to submit and receive documentation of all agencies involved in the goods clearance process.  A full list of measures undertaken pursuant to the TFA is available at: https://www.tfadatabase.org/members/saint-vincent-and-the-grenadines/measure-breakdown   .

Legal System and Judicial Independence

The country’s legal system is based on the British common law system.  The constitution guarantees the independence of the judiciary. The judicial system consists of lower courts, called magistrates’ courts, and a family court.  The Eastern Caribbean Supreme Court (St. Vincent and the Grenadines) Act establishes the Supreme Court of Judicature, which consists of the High Court and the Eastern Caribbean Court of Appeal.  The High Court hears criminal and civil (commercial) matters and makes determinations on the constitutional matters. Parties may appeal first to the Eastern Caribbean Supreme Court, an itinerant court that hears appeals from all OECS members.  The final court of appeal is the Judicial Committee of the Privy Council of the United Kingdom.

The country has a strong judicial system that upholds the sanctity of contracts and prevents unwarranted discrimination towards foreign investors.  The government treats foreign investors and local investors equally with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory.  The police and court systems are generally unbiased in commercial matters.

The Caribbean Court of Justice (CCJ) is the regional judicial tribunal.  The CCJ has original jurisdiction to interpret and apply the Revised Treaty of Chaguaramas.  St. Vincent and the Grenadines is subject to the original jurisdiction of the CCJ only.

The United States and St. Vincent and the Grenadines are both parties to the WTO.  The WTO Dispute Settlement Panel and Appellate Body resolve disputes over WTO agreements, while courts of appropriate jurisdiction in both countries resolve private disputes.

Laws and Regulations on Foreign Direct Investment

Invest SVG provides guidance on the relevant laws, rules, procedures, and reporting requirements for investors.  Invest SVG has the authority to screen and review FDI projects. The review process is transparent and contingent on the size of capital investment and the project’s projected economic impact.  The investor must complete a series of steps to obtain a business license. These steps are listed at http://www.investsvg.org  .  All potential investors seeking an incentive package must submit their proposals for review by Invest SVG to ensure the project is consistent with the nation’s laws and interests and would provide economic benefits to the country.

Local enterprises generally welcome joint ventures with foreign investors in order to access technology, expertise, markets, and capital.

Competition and Anti-Trust Laws

Chapter 8 of the Revised Treaty of Chaguaramas outlines the competition policy applicable to CARICOM states.  Member states are required to establish and maintain a national competition authority for implementing the rules of competition.  CARICOM established a Caribbean Competition Commission to apply rules of competition regarding anti-competitive cross-border business conduct.  CARICOM competition policy addresses anti-competitive business conduct such as agreements between enterprises, decisions by associations of enterprises, and concerted practices by enterprises that have as their object or effect the prevention, restriction, or distortion of competition within the Community, and actions by which an enterprise abuses its dominant position within the Community.  No legislation is yet in operation to regulate competition in St. Vincent and the Grenadines. 

Expropriation and Compensation

Under the Land Acquisition Act, the government may acquire land for a public purpose.  The government must serve a notice of acquisition on the person from whom the land is acquired.  A Board of Assessment determines compensation and files its award in the High Court. The value of the land is based on the amount for which the land would have been sold on the open market by a willing seller.  Under the Alien’s (Land-Holding Regulation) Act, the government can hold properties forfeit without compensation if the terms of the investment are not met. U.S. Embassy Bridgetown is not aware of any outstanding expropriation claims or nationalization of foreign enterprises in St. Vincent and the Grenadines.

Dispute Settlement

ICSID Convention and New York Convention

St. Vincent and the Grenadines is a member of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States of October 14, 1966, and the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, also known as the New York Arbitration Convention.

According to the World Bank’s 2019 Doing Business Report, dispute resolution generally took 595 days, though this may vary.  Foreign investors deem the court system and bureaucracy as slow, and thus, as main hindrances to timely resolution to commercial disputes.  St. Vincent and the Grenadines ranks 56th of 190 countries in enforcing contracts. Through the Arbitration Act (1952), the local courts recognize and enforce foreign arbitral awards issued against the government.

Investor-State Dispute Settlement

Investors are permitted to use national or international arbitration regarding contracts entered into with the state.  St. Vincent and the Grenadines does not have a Bilateral Investment Treaty or a Free Trade Agreement with an investment chapter with the United States.

The U.S. Embassy Bridgetown is not aware of any current investment disputes in the country.

International Commercial Arbitration and Foreign Courts

The Eastern Caribbean Supreme Court is the domestic arbitration body and the local courts recognize and enforce foreign arbitral awards.  The Trade Disputes (Arbitration and Inquiry) Act provides that either party to an existing trade dispute ca report it to the Governor General.  The Governor General may, if both parties consent, refer the dispute to an arbitration panel for settlement. The arbitration panel must issue an award that is consistent with national employment laws.  Parties can be represented by legal counsel before the arbitration panel. These bodies may conduct proceedings in public or private. The Trade Disputes Act provides that alternative dispute mechanisms are available as a means for settling disputes between two private parties.  The government recognizes voluntary mediation or conciliation as dispute resolution mechanisms. The Eastern Caribbean Supreme Court’s Court of Appeal also provides mediation.

Bankruptcy Regulations

The Bankruptcy and Insolvency Act governs the country’s bankruptcy framework and grants certain rights to debtors and creditors.  The 2019 World Bank Doing Business Report ranks St. Vincent and the Grenadines 168th of 190 countries in resolving insolvency.

Investment Incentives

St. Vincent and the Grenadines offers many incentives via the Fiscal Incentives Act for investors and provides the necessary information on the laws, criteria, and application procedures to qualify for these incentives.

The list of incentives includes exemption from or reduction of duty payments on the importation or purchase of materials and other equipment for use in the construction and operation of the business.   Other incentives are the exemption from or reduction of duty on the importation or purchase of vehicles for use in the operation of the business, and the reduction of property tax of up to 10 percent for land and buildings used in the operation of the business.  The government also provides tax holidays as an investment incentive. Group I enterprises (50 percent or more local value added) enjoy a 15 year tax holiday period; Group II enterprises (25 to 49 percent local value added) are granted 12 years; Group III enterprises (10 to 24 percent local value added) receive 10 years.  Enclave enterprises (producing wholly for extra-CARICOM Markets) enjoy a 15-year tax holiday. The Ministry of Industry administers this Act.

In the tourism sector, the Hotels Aid Act provides incentives for the renovation, refurbishment, and expansion of existing hotels and for the construction of new hotels.  Concessions for expansions of not less than five guest rooms are also available. The Ministry of Tourism administers the Act.

The corporate tax rate ranges from 15 to 30 percent, except for companies granted tax holidays under the Fiscal Incentives Act.  Companies manufacturing goods for local or export markets and which maintain a special account conforming to Comptroller of Inland Revenue requirements have access to reduced tax rates.  Offshore businesses are also subject to Value Added Tax (VAT) on taxable goods imported into St. Vincent and the Grenadines. VAT is 16 percent. An international business company may import machinery and equipment free from certain taxes and customs duties if the imports are capital goods to be used in a company’s business.

The government recognizes trusts if they are in writing and follow the formal requirements for a deed or settlement under the International Trust Act.  The Act recognizes several types of international trusts: protective or spendthrift trusts, charitable trusts, and purpose trusts. A Registrar of Trusts has direct regulatory responsibilities relating to registration, certificate issuance, and review of trust documentation.  At least one trustee must be registered and licensed for an international trust to be registered. The government confers certain benefits on registered trusts, including exemptions from various taxes and duties provided the settler was not insolvent at the time the trust was created or did not become insolvent because of the creation of the trust.  The exemptions include income tax, excise tax, customs duties, and stamp duty exemptions. These are applicable if certain conditions are met, one of which being that the trust must not be domiciled in the country. The Comptroller of Inland Revenue is empowered to assess a trust’s eligibility for tax exemptions and may require the registered trustee to provide financial information.

If at least one beneficiary of a registered trust becomes resident after the trust is registered, and if the trust is in good standing, the fact of the residency of the beneficiary will not invalidate the trust.  However, neither the trust nor its beneficiaries will be entitled to tax exemptions for any year during which the trust had one or more resident beneficiaries. An international trust, except one that is an international company, will not become void or voidable as a result of a settler’s bankruptcy, insolvency, or liquidation, the law of the settler’s domicile or ordinary residence notwithstanding.

While there is no formal legislation in relation to incentives in the information and telecommunications sector, commercial presence and establishment is still very much at the discretion of the Cabinet on advice from the National Telecommunications Regulatory Commission (NTRC).

Foreign Trade Zones/Free Ports/Trade Facilitation

There are no foreign trade zones or free trade zones in St. Vincent and the Grenadines.

Performance and Data Localization Requirements

Companies must meet export performance requirements to take advantage of certain tax incentives.  For example, “enclave enterprises” must produce goods exclusively for export outside the CARICOM region.  Foreign investors may finance investments using domestic or foreign capital sources. The Fiscal Incentives Act confers income tax credits in the form of an export allowance to qualifying enterprises for the export of approved products.

The government does not mandate local employment.  The Employment of Foreign Nationals and Commonwealth Citizens Act provides that foreign nationals or Commonwealth citizens must obtain a valid work permits.  The ministry responsible for national security oversees work permit applications. The government may modify or cancel work permits after a seven-day notice if the holder fails to comply with the conditions of the permit.

While there are no formal performance requirements, government officials strongly encourage investments they believe will create jobs and increase exports and foreign exchange earnings.  In an effort to increase investment, the government of St. Vincent and the Grenadines introduced a series of investment incentives, codified in the Fiscal Incentives Act. These include tax holidays, import duty exemption, duty free concessions on the purchase of machinery and equipment, and various tax exemptions.  The government may grant incentives to some investments involving real estate if investors meet minimum investment requirements prescribed by the Alien’s (Land-Holding Regulation) Act. There is no requirement that enterprises purchase a fixed percentage of goods from local sources. There are no requirements for foreign information technology providers to turn over source code and/or provide access to surveillance (backdoors into hardware and software keys for encryption, etc.).

Real Property

The Aliens’ Land Holding Act regulates the holding of land and mortgages related to land by individuals who are non-nationals and companies controlled by non-nationals.  Non-nationals must apply for and be granted a license in order to hold land. The breach of any condition of the license authorizes forfeiture to the government of the interest held by the non-national.  License conditions may require that land be developed within a specific timeframe. Non-nationals apply for a license to hold land to the office of the Prime Minister through an attorney licensed to practice in St. Vincent and the Grenadines.  If approved, the non-national must file the license at the Registry of the High Court. The Registry collects all applicable registration fees and stamp duties. The World Bank’s 2019 Doing Business Report ranks St. Vincent and the Grenadines 171st of 190 countries in ease of registering property.  It takes about 47 days to complete the seven necessary procedures, at a cost of about 11.8 percent of the property value.  The report describes the procedure to purchase and register property.

Intellectual Property Rights

St. Vincent and the Grenadines has a legislative framework regarding its commitment to the protection of intellectual property rights (IPR).  While the legal structures governing IPR are adequate, enforcement measures are inconsistent. The administration of IPR laws is the responsibility of the Office of the Attorney General.  The Commerce and Intellectual Property Office administers the registration of patents, trademarks, and service marks the. St. Vincent and the Grenadines is a signatory to the Paris Convention on IPR and the Berne Convention.  It is also a member of the United Nations World Intellectual Property Organization (WIPO) and is a signatory to its treaties.

Article 66 of the Revised Treaty of Chaguaramas (2001) establishing the Caribbean Single Market and Economy (CSME) commits all 15 members to implement stronger IPR protection and enforcement.  The Economic Partnership Agreement (EPA) between the CARIFORUM states and the European Community contains the most detailed obligations in respect to IPR in any trade agreement to which St. Vincent and the Grenadines is a party.  The EPA recognizes the protection and enforcement of IPR. Article 139 of the EPA requires parties to “ensure an adequate and effective implementation of the international treaties dealing with intellectual property to which they are parties, and of the [World Trade Organization (WTO)] Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).”

The Enforcement Division of the Customs and Excise Department spearheads the preventative and enforcement aspects of IPR protection, which includes the detention, seizure, and forfeiture of counterfeit goods.  The Enforcement Division also conducts investigations of customs offenses and administers fines and penalties.

St. Vincent and the Grenadines is not included in the United States Trade Representative (USTR) Special 301 Report or Notorious Markets List.

Capital Markets and Portfolio Investment

St. Vincent and the Grenadines is a member of the ECCU.  As such, it is also a participant on the Eastern Caribbean Securities Exchange (ECSE) and the Regional Government Securities Market.

The ECSE is a regional securities market established by the ECCB and regulated by the Eastern Caribbean Securities Regulatory Commission.  The Securities Act of 2001 regulates activities on the ECSM.

The Eastern Caribbean Securities Exchange and its subsidiaries, the Eastern Caribbean Central Securities Depository and the Eastern Caribbean Central Securities Registry, facilitate activities on the ECSE.  The main activities are the primary issuance and secondary trading of corporate and sovereign securities, the clearance and settlement of issues and trades, maintaining securities holders’ records, and providing custodial, registration, transfer agency, and paying agency services in respect of listed and non-listed securities.  As of March 2018, there were 135 securities listed on the ECSE, comprising 112 sovereign debt instruments, 14 equities, and nine corporate bonds. Market capitalization as of March 2018 was USD 3.07 billion.

Money and Banking System

Eight participating governments passed the Eastern Caribbean Central Bank Agreement Act.  The Act provides for the establishment of the ECCB, its management and administration, its currency, relations with financial institutions, relations with the participating governments, foreign exchange operations, external reserves, and other related matters.  St. Vincent and the Grenadines is a signatory to this agreement and as such, the ECCB controls St. Vincent and the Grenadines’ currency and regulates its domestic banks.

In its latest annual report, the ECCB listed the commercial banking sector in St. Vincent and the Grenadines as stable.  Assets of commercial banks totaled USD 815.2 million at the end of December 2018 and remained relatively consistent during the previous year.  The reserve requirement for commercial banks was 6 percent of deposit liabilities.

International banks domiciled in the United States, Canada, and Europe are reviewing their correspondent banking relationships in regions that they deem as high-risk for financial services.

In March 2019, the ECCB launched an 18-month financial technology pilot program with its partner, Barbados-based Bitt Inc. The ECCB will work closely with Bitt Inc. to develop, deploy, and test technology which focuses on data management, compliance and transaction monitoring systems.  This will help to improve the risk profile of the ECCU and mitigate against the trend of de-risking by the region’s correspondent banking partners. The pilot will also focus on developing a secure, resilient digital payment and settlement platform with embedded regional and global compliance.  The ECCB will also issue a digital Eastern Caribbean currency (DXCD) which will operate alongside physical Eastern Caribbean currency. The ECCB will issue the DXCD to licensed bank and non-bank financial institutions on a private blockchain platform.

Foreign Exchange and Remittances

Foreign Exchange

St. Vincent and the Grenadines is a member of the ECCU and the ECCB.  The currency of exchange is the Eastern Caribbean dollar (XCD). As a member of the OECS, its foreign exchange system is fully liberalized.  The Eastern Caribbean dollar has been pegged to the U.S. dollar at a rate of XCD 2.70 to USD 1.00 since 1976. As a result, the Eastern Caribbean dollar does not fluctuate, creating a stable currency environment for trade and investment.

Remittance Policies

Companies registered in St. Vincent and the Grenadines have the right to repatriate all capital, royalties, dividends, and profits free of all taxes or any other charges on foreign exchange transactions.  International business companies are exempt from taxation. Under present regulations, there are no personal income taxes, estate taxes, corporate income taxes, or withholding taxes for international business companies operating in St. Vincent and the Grenadines.  International business companies are also exempt from competitive tax for 25 years. Only banks may make currency conversions. St. Vincent and the Grenadines is a member of the Caribbean Financial Action Task Force (CFATF).

In 2014, the government of St. Vincent and the Grenadines signed an intergovernmental agreement with the United States to facilitate compliance with FATCA, which makes it mandatory for St. Vincent and the Grenadines’ banks to report the banking information of U.S. citizens.

Sovereign Wealth Funds

Neither the government of St. Vincent and the Grenadines, nor the ECCB, of which St. Vincent and the Grenadines is a member, maintain a sovereign wealth fund.

The government and the public view positively responsible business conduct.  The private sector is involved in projects that benefit society, including in support of environmental, social, and cultural causes.  Individuals benefit from business-sponsored initiatives when local and foreign owned enterprises volunteer and make monetary or in-kind donations to local causes.

The non-governmental organization (NGO) community, while comparatively small, is involved in fundraising and volunteerism in gender, health, environmental, and community projects.  The government at times partners with NGOs in activities and generally encourages philanthropy.

The law provides criminal penalties for official corruption, and the government generally implements these laws.  St. Vincent and the Grenadines is a signatory to the Inter-American Convention against Corruption, but not to the United Nations Anti-Corruption Convention.

The Director of Public Prosecutions (DPP) has the authority as contained to prosecute a number of corruption-related offenses.  Corruption allegations are investigated by the Royal St. Vincent and the Grenadines Police Force. There is generally no statutory standard obligation for public officers to disclose financial information to a specific authority.  However, if there are confiscation proceedings initiated or contemplated against a corrupt official, pursuant to the Proceeds of Crime Act, No. 38 of 2013, the courts can order disclosure of financial information. The Financial Intelligence Unit has the authority to conduct financial investigations with a court order.

The law also provides for public access to information.  Human rights organizations assisted individuals in obtaining information, but considered the mechanism for gaining access deficient.  Only a narrow list of exceptions outlining the grounds for nondisclosure exists, yet there is no specific timeline for the relevant authority to make the requested response or disclosure.  There are no criminal or administrative sanctions for not providing a response and there is no appeal mechanism for review of a disclosure denial. Public outreach activities via radio call-in shows encouraged citizens to access public information.

Resources to Report Corruption

Contact at the government agency or agencies that are responsible for combating corruption:

Sejilla McDowall
Director of the Public Prosecutions (acting)
Office of Public Prosecutions
Frenches Gate, Kingstown
Telephone: 784-457-1344
Email: dppsvg@vincysurf.com

Colin John
Commissioner of Police
Royal St. Vincent and the Grenadines Police Force
Kingstown
Telephone: 784-457-1211

St. Vincent and the Grenadines does not have a recent history of politically motivated violence or civil disturbance.  Elections are peaceful and regarded as being free and fair. The next general elections are constitutionally due in December 2020.

Table 2: Key Macroeconomic Data, U.S. FDI in St. Vincent and the Grenadines

* Source for Host Country Data: Eastern Caribbean Central Bank https://www.eccb-centralbank.org/statistics/dashboard-datas/  . All ECCB GDP figures for 2018 are currently estimates.

Table 3: Sources and Destination of FDI

St. Vincent and the Grenadines does not appear in the IMF’s Coordinated Direct Investment Survey (CDIS).

Table 4: Sources of Portfolio Investment

St. Vincent and the Grenadines does not appear the IMF Coordinated Portfolio Investment Survey (CPIS).