Hong Kong Signs Comprehensive Avoidance of Double Taxation Agreement (CDTA) with Barbados
On 19 March, 2026, Hong Kong signed a comprehensive avoidance of double taxation agreement (CDTA) with Barbados in Beijing, marking Hong Kong’s 57th CDTA globally and the second one concluded this year(after the Kyrgyz Republic).
Barbados, an island nation in the Caribbean, is known for its tourism industry, international business services and offshore financial sector. In recent years, it has strengthened engagement with Asian markets, with China becoming an increasingly important trade and development partner. China and Barbados maintain cooperation in infrastructure development, climate initiatives, education and cultural exchanges. As an international financial and commercial hub, Hong Kong serves as a key gateway connecting Mainland China with the Caribbean region, offering strong advantages in finance, investment and professional services.
The pact clarifies tax right allocation to eliminate double taxation and stabilises cross-border tax costs for investors. Hong Kong residents can claim tax credit for taxes paid in Barbados, and enjoy exemption from general 5% dividend withholding tax there.
It will take effect upon bilateral ratification. Hong Kong will follow relevant statutory legislative procedures for implementation. The agreement strengthens bilateral trade and investment ties, and leverages Hong Kong’s dual advantages to facilitate Barbados businesses tapping into mainland China market.
