The OECD rewarded Barbados with the ranking for being a “transparent and highly cooperative jurisdiction”.
Other domiciles received the same recognition including Austria, Germany, Hong Kong, the Netherlands, UK and US.
In addition, Barbados recorded a net addition of 11 captive insurance entities for the fiscal year ending March 2017, raising its total from 235 captives in 2015/16 to 246 captives in 2016/17.
Of the 246 captives domiciled in Barbados, approximately 81 percent originate from either Canada or the US.
Senator Darcy Boyce, minister in the office of the Prime Minister with responsibility for energy, immigration, telecommunication and Invest Barbados, said: "As evidenced by the steady growth in new captive insurance registrations, it is clear that Barbados retains its status as a preferred jurisdiction in which to conduct international business."
"The reasons for such growth are clear. Barbados has long been recognised for its network of double taxation agreements, transparency, strong regulatory environment, forward thinking legislation, world-class infrastructure, a well-educated labour force and its ability to foster international trade."