For citizens of Barbados earning income from the United States, a significant advantage exists: the U.S.-Barbados Income Tax Treaty. This agreement allows residents of Barbados to qualify for reduced withholding tax rates on various types of U.S. income.

However, to unlock these valuable treaty benefits, you need a key—an Individual Taxpayer Identification Number (ITIN) from the IRS. Whether you’re receiving dividends from U.S. investments, earning royalties, or freelancing for American companies, an ITIN is essential for claiming your treaty rights and minimizing your tax burden.

At House of Bookkeepers, an IRS-Certified Acceptance Agent (CAA), we help Barbadian applicants secure their ITINs quickly and securely, without the need to mail your passport overseas.

What Is an ITIN?

An ITIN is a nine-digit tax processing number (format: 9XX-XX-XXXX) issued by the IRS to individuals who are required to have a U.S. taxpayer identification number but are not eligible for a Social Security Number (SSN).

Important: An ITIN is for tax purposes only. It does not:

  • Grant work authorization in the U.S.

  • Provide immigration status.

  • Replace an SSN.

Who Commonly Uses ITINs?

  • Nonresident aliens with U.S.-sourced income

  • Property investors under FIRPTA rules when selling U.S. real estate

  • Spouses and dependents of U.S. taxpayers

  • Students or researchers with U.S. scholarships or fellowships

  • Freelancers, Amazon sellers, and contractors paid by U.S. clients

Who in Barbados Needs an ITIN to Leverage the Treaty?

The U.S.-Barbados treaty offers specific advantages. You likely need an ITIN if you are in one of these common scenarios:

  • Freelancers and Consultants
    While the treaty may not eliminate tax on business profits without a permanent establishment, an ITIN is still required to file a U.S. tax return and report your income correctly, ensuring compliance. If you earn through platforms like Upwork, Fiverr, PayPal, Stripe, Amazon, or AdSense, payments may be subject to 30% default withholding. With an ITIN, you can file a U.S. return and apply treaty benefits to reduce tax.

  • Real Estate Investors: Selling U.S. property triggers FIRPTA withholding (15% of the sale price). An ITIN is mandatory to file a tax return and claim a refund for any amount withheld over your actual tax liability.

  • Spouses of U.S. Citizens/Residents:
    To file a joint U.S. tax return with your spouse and access lower tax brackets, you will need an ITIN.

  • Investors in U.S. Stocks & Companies: The treaty reduces the withholding tax on dividends significantly. An ITIN and a completed Form W-8BEN are required to apply this lower rate.

  • Responsible Party for a U.S. LLC
    If you own or manage a U.S. LLC, you may need an ITIN for IRS reporting. Required documents include your Articles of Organization, Operating Agreement, and IRS EIN Confirmation Letter (CP 575 Notice).

  • Authors & Intellectual Property Owners: If you earn royalties from U.S. sources, the treaty provides for reduced withholding. An ITIN is necessary to claim this benefit.

Key Benefits of the U.S. – Barbados Tax Treaty with an ITIN

Once you have your ITIN, you can formally claim these treaty advantages:c

 

  • Dividends: Withholding tax on dividends is reduced from the standard 30% to a favorable rate under the treaty.

  • Interest: Certain interest income may be exempt from withholding or taxed at a reduced rate.

  • Royalties: Reduced withholding rates often apply to royalties from copyrights, patents, and other intellectual property.

  • Students & Researchers: Scholarships or fellowships may be exempt for a limited time.

  • Pensions and Annuities: The treaty provides specific rules for the taxation of pension income.

  • Reduced tax rates: Apply reduced tax rates under the U.S.- Barbadsos treaty.

  • Avoid penalties: File U.S. taxes legally and avoid penalties.

 

👉 To access treaty benefits, you need:

  • An ITIN

  • The correct IRS form (e.g., Form W-8BEN or Form 8233) submitted to the U.S. payer

Step-by-Step: How to Apply for an ITIN from Barbados in 2025

Step 1: Confirm Eligibility

You need a U.S. tax-related reason such as:

  • Filing a U.S. tax return for income, investments, or freelance work

  • Selling or renting U.S. property

  • Filing jointly with a U.S. spouse

  • Claiming treaty benefits

  • You must have a valid U.S. tax purpose, such as filing a return to claim treaty benefits, report income, or comply with FIRPTA.

Step 2: Complete Form W-7

This is the official ITIN application. Accuracy is critical to avoid delays.

Step 3: Gather Required Documents

  • Valid passport (scan copy works with a CAA; otherwise, IRS requires original or certified copy)

  • U.S. federal tax return (Form 1040 or 1040-NR), unless you qualify for an exception

  • Supporting documents (visa, U.S. income statements, property contracts, scholarship letters, etc.)

Step 4: Apply Through a Certified Acceptance Agent (CAA)

This is the safest and most efficient method. As an IRS-Certified Acceptance Agent, House of Bookkeepers verifies your original documents locally in Barbados. This means you never have to mail your passport to the United States, keeping it safe and secure. As an IRS CAA, we verify your documents locally in Barbados and submit your ITIN application directly.

ITIN Processing Timeline in 2025

  • Standard processing: 8–13 weeks
  • Peak season (Jan–Apr): up to 13–16 weeks
  • At HOB, we can often retrieve your ITIN number within ~2.5 months by contacting the IRS.
  • Note: The official ITIN letter (CP565) still takes the full processing time to arrive by mail.

Why Use House of Bookkeepers (IRS CAA)?

  • ✅ Passport stays safe — verified locally in Barbados

  • ✅ Higher approval rate, fewer rejections

  • ✅ End-to-end support: W-7 form, COA, tax return, and submission

  • ✅ Official IRS authorization (listed CAA)

  • ✅ Real-time updates until your ITIN letter arrives

  • ✅ 100% Money-Back Guarantee if rejected due to our process error

ITIN Processing Timeline in 2025

  • Standard processing: 8–11 weeks

  • Peak season (Jan–Apr): up to 13–16 weeks

  • Professional handling helps minimize delays

Common Mistakes to Avoid

  • Submitting incomplete or inaccurate Form W-7

  • Using uncertified passport copies without a CAA

  • Forgetting to attach a U.S. tax return (unless exempt)

  • Mailing documents through unreliable services

  • Believing ITIN provides immigration or work rights (it does not)

Quick FAQs – ITIN from Barbados

Q1. Can I apply for an ITIN from Barbados?
Yes. With House of Bookkeepers as your IRS CAA, you don’t need to travel or mail your passport.

Q2. Does Barbados have a tax treaty with the U.S.?
Yes. The treaty reduces withholding on dividends, interest, and royalties. An ITIN is required to apply these benefits.

Q3. How long does it take to get an ITIN?
8–13 weeks. At HOB, we can often retrieve your ITIN number earlier (~2.5 months), but the IRS letter CP565 still takes the full processing time.

Q4. Do I need a U.S. address?
A U.S. address is not mandatory. The IRS can send your ITIN letter directly to your foreign (non-U.S.) address as listed on your application. However, if you have a U.S. residential address or a mail forwarding service, you may use it for convenience and faster delivery.

Alternatively, we can also receive the letter at our address and send you a scanned copy by email.

Q5. How will you verify my identity?
As part of the IRS verification process, we’ll ask you to provide a selfie of yourself holding the passport’s information page. This simple step confirms that the passport belongs to you and helps us complete your identity verification securely.

Apply with Confidence

At House of Bookkeepers, we make ITIN applications smooth and safe for Barbadian applicants.

📍 IRS-Certified Acceptance Agent (CAA) – Barbados Service
🌍 Website: https://www.houseofbookkeepers.com

Apply today — and unlock the benefits of refunds, treaty savings, and IRS compliance.