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Barbados vs Germany
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡§πŸ‡§ Barbados
vs
πŸ‡©πŸ‡ͺ Germany
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
12.5–28.5%
28.5% top; competitive Caribbean jurisdiction
No change
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
17.5%
17.5% stable
No change
7–19%
Standard 19% unchanged
No change
Corporate Tax Rate
Corporate Tax Rate
5.5–9%
Tiered rate; Pillar Two compliance for large groups
No change
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
Capital Gains Tax
Capital Gains Tax
0%
No CGT β€” sustained advantage
No change
25%
Investment income reform proposals under review
No change
Social Security & Payroll
Social Security / Payroll
~18.1%
NIS contributions; pension reform needed
No change
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
State, Regional & Local Taxes

πŸ‡§πŸ‡§ Barbados β€” Parish Councils & Land Tax

Barbados's 11 parishes have parish councils that levy land tax at 0.1%–0.7% of site value. Barbados has long been a significant international business and financial centre, particularly for Canadian companies. Major tax reform in 2019 aligned Barbados with OECD BEPS standards. A tiered corporate tax rate structure was introduced. Barbados was removed from the EU tax haven blacklist following these reforms and maintains competitiveness as an IFC.

πŸ‡©πŸ‡ͺ Germany β€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Barbados vs Germany: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡ͺ Germany has a higher top income tax rate (12.5–28.5% vs 14–45%). πŸ‡§πŸ‡§ Barbados is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Germany has a higher consumption tax (17.5% vs 7–19%).

🏒 Corporate Tax: πŸ‡§πŸ‡§ Barbados offers a lower corporate rate (9% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡§πŸ‡§ Barbados taxes investment gains at a lower rate (0% vs 25%), benefiting investors.

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