Why Invest in Trinidad and Tobago?
The government of Trinidad & Tobago actively encourages foreign direct investment and traditionally welcomes investors. There are no restrictions or disincentives to investment. Foreign ownership of companies is permitted and welcomed under the Foreign Investment Act (1990). The myriad foreign companies operating in Trinidad and Tobago (T&T) span many economic sectors including banking, aviation, energy and manufacturing.
Reasons to Invest
1. Along with being a major player in CARICOM (which has an estimated population of 6 million), Trinidad and Tobago is one of the most active economies in the Anglophone Caribbean.
- Key player in the multilateral trading system with one of the highest Foreign Direct Investment (FDI) rates in the region.
- Between CARICOM and countries such as the Dominican Republic, Venezuela, Colombia, and Costa Rica there are bilateral trade agreements in which Trinidad and Tobago based investors take part in.
2. Macro-Economic Stability
3. The proximity to the South and North American continents allow for strategic location, and the country has sufficient infrastructure to make use of this advantage.
- The Piarco International Airport is a major hub for international air traffic, thus making Trinidad and Tobago easily accessible to neighboring cities. Connecting methods are using to link the smaller Arthur NR Robinson Airport with Piarco, and the capital, Scarborough, with Port-of-Spain via bi-hourly air service and daily ferries.
- Trinidad’s two industrial ports, located in Port-of-Spain and Point Lisas, serve as key transshipment centers between the Americas. Generally, they deal with dry cargo, along with industrial bulk and containers.
- An extensive system of paved roads and highways connect both islands. Trinidad and Tobago also has a well-developed public transport system that includes a daily water-taxi allowing for commutes between the south of Trinidad to the capital city.
- Industries are located in Industrial parks spread out throughout the country. Real estate is in abundance, for both commercial and private use.
4. Aid and incentives for investors.
- Manufacturing: For a period of five years, an approved small company is allowed a tax credit equal to 25% of the chargeable profits. Also, for approved projects there is an exemption from customs duties on construction. Furthermore, free trade zone incentives are also obtainable.
- Creative Industries: The Production Expenditure Rebate Program provides cash rebates of 12.5%, 15% or 30% in areas such as the rental of local equipment, supplies and services. The Revolving Investment Arrangement program provides financial assistance of up to 70% of any project for entertainment practitioners with major projects related to the entertainment industry.
- All sectors: Grant funding is obtainable to non-energy manufacturing and service business for R&D purposes. Investors can receive a tax credit equal to 30% of the investment made. An approved company carrying out business in a regional development area is allowed a tax credit of 25% of the chargeable profits made in a period of seven years.
5. Competitive Corporation Tax Rates
- Companies benefit from tax rates as low as 25% for non-energy related businesses. The rate is 35% in the energy sector.
6. Low Energy Cost
- A major incentive for manufacturing companies is the low energy costs associated with Trinidad and Tobago.
7. Foreign Exchange Stability
- Over the past ten years the exchange rate to the US Dollar has been $US 1 to $TT 6.30.
8. Developed Manufacturing Sector
- The Trinidad and Tobago Manufacturer’s Association holds more information regarding the well-developed manufacturing sector in the energy and non-energy sector and potential joint-venture opportunities.
About Trinidad and Tobago - Statistics
|Population||1,3 million inhabitants|
|GDP (millions of US$)||24|
|GDP per capita||20,400|
|Unemployment Rate (2010)||4,2%|