Vehicle Rental Levy to take effect from October 15th, 2025

The Government of Barbados has announced that the Vehicle Rental Levy will take effect from October 15th, 2025. When the Levy was originally announced, the rate was set at $10 per day. However, the government has announced that the rate of the Levy will be $5 per day, up to a maximum of 7 days. This means the Levy will be capped at $35 per rental agreement, regardless of the length of the contract.

Once the Levy comes into force, visitor pemits will be abolished, but a valid domestic or foreign driving licence will still be required to drive in Barbados.

Please note the Levy will apply to both visitors and residents alike, whether they have a domestic or foreign driving licence, if they are renting a vehicle.

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