Thousands of visitors flock to Antigua and Barbuda’s shores each year, drawn in by the Caribbean twin-island nation’s abundance of nature, outdoor activities, sun, and the soothing sea. While not as many expats stay long-term on the island, the Antigua tax scheme is considered favorable, enabling foreign investors to optimize their tax strategy and even alleviate some of their tax burdens. Propelled by the Antigua and Barbuda Citizenship By Investment Program, it has never been easier for foreigners to invest in Antigua, obtain a travel friendly passport, and even set up their Antigua tax residency on the island.
In this guide, we’ll unwrap everything you need to know about taxes in Antigua, guiding you through all the taxes in Antigua imposed by the island’s revenue department. At the end of this piece, you’ll have a nuanced understanding of how Antigua and Barbuda’s tax regime can benefit you.
Key topics covered in this guide include:
- A general overview of taxation in Antigua
- Antigua and Barbuda’s taxable income tax rates
- Tax laws of Antigua and Barbuda
And so much more!
About Antigua and Barbuda
Located in the Eastern Caribbean, Antigua and Barbuda is a tropical island nation filled with secluded bays, sandy beaches, coral reefs, and volcanic rocks dramatically rising up to Mount Obama. Blessed with nature and a warm, balmy climate, it’s only natural then that the island attracts tourists year-round.
However, the government also offers foreign nationals the chance of a lifetime — to earn Antigua citizenship — in exchange for making a qualifying investment in the nation. Called the Antigua and Barbuda Citizenship By Investment Program, the initiative is particularly popular among digital entrepreneurs, nomads, investors, expat families, and business-minded individuals looking to enhance their personal and financial freedoms.
Antigua Citizenship: Tax Benefits
Investors can acquire Antigua citizenship by either investing in real estate or business. Alternatively, foreign nationals can also make a non-refundable donation of $100,000 to the National Development Fund.
Applicants must go through a strict due diligence check carried out by the Barbuda Investment Authority in order to acquire an Antiguan and Barbudan passport. Investing in Antigua and Barbuda rewards expats with a myriad of opportunities, including visa-free travel access to over 140 destinations worldwide including the United Kingdon, Europe’s Schengen Area, Hong Kong, and more.
With Antiguan and Barbudan citizenship, comes the right to become a tax resident of Antigua. Why pursue tax residency, one may wonder? In short, Antigua and Barbuda tax regime is favorable and considered moderate, enabling individuals to benefit from no capital gains taxes or estate taxes, and no personal income taxes. The currency is the Eastern Caribbean Dollar (EC$), which is pegged to the US$ at 2.70.
While Antigua and Barbuda is by no means considered a ‘tax haven’, the nation does have a solid taxation structure that an investor could find appealing.
Taxes in Antigua and Barbuda: Overview
By becoming an Antigua and Barbuda citizen via the Antigua and Barbuda citizenship by investment program, applicants can avoid double taxation in countries that Antigua has taxation treaties with, such as the Caribbean countries and the United Kingdom. Foreign tax credit is also available to people in Antigua and Barbuda who have paid or are liable to pay British commonwealth income tax.
To top it off, Antigua’s government is actively encouraging company owners to relocate their headquarters to the country, thanks to friendly tax incentives like no personal income tax. Moreover, individuals are exempt from income tax on worldwide income or assets by holding Antiguan citizenship— without needing to register their tax residency in the country. Only income derived from inside the country is subject to taxation.
Antigua and Barbuda offers the following tax benefits:
No capital gains tax on worldwide income
Attractive tax breaks on qualifying companies’ profits for up to 20 years
Certain waivers and exemptions on customs duties for qualifying companies
No inheritance tax
No wealth tax
Antigua Personal Income Tax
In 2016, the government of Antigua and Barbuda reduced a sweeping tax reform, thereby abolishing the need for personal income tax. In essence, this means that Antigua and Barbuda has no personal income tax, so no taxes whatsoever are deducted from personal income. The authorities made this move to attract foreign interest to its shores, as well as position themselves competitively among their Caribbean neighbors.
Antigua Corporate tax
Antigua and Barbuda’s corporate tax rate for domestic companies is currently 25%, with a branch tax rate of 25% and no capital gains tax. A company is classified as ‘resident’ if it’s incorporated or registered as an external company in Antigua and Barbuda, or if it’s centrally managed in Antigua and Barbuda. In this case, a resident company is taxed on worldwide income. Meanwhile, a nonresident company is taxed only on income derived or sourced from Antigua and Barbuda.
In terms of foreign tax relief, foreign tax credits are not normally given unless the taxes have been paid in a British commonwealth country that grants similar relief for Antigua and Barbuda taxes, or where there’s a tax treaty that provides a merit for such a credit.
Tax residency in Antigua and Barbuda
Establishing Antigua tax residency can be an excellent way to protect your income and guarantee previsibility when it comes to global income taxation. The permanent residency program was created to attract wealthy individuals and business investment to the country. You don’t need to be a citizen in order to be able to take part in Antigua residency by investment
The requirements to establish tax residency are:
- Maintain a residential address in Antigua and Barbuda
- Spend a minimum of 30 days each year in the country
- Have an annual income above $100K
- Payment of a flat tax of $20K per annum
Benefits of tax residency:
- No income tax on worldwide income or assets
- No capital gains tax on worldwide income or assets
- No inheritance tax on worldwide income or assets
- No wealth tax on worldwide income or assets
Other taxes to consider
Some other important tax considerations include:
- Property tax: property tax depends on the market value of the property, and ranges from 0.2% to 0.5%. Undeveloped land owned by a nonresident is subject to an undeveloped land tax, which is dependent on the value of the land ranging from 10% to 20%, depending on the length of time the property has been owned.
- Transfer tax: Nonresidents must obtain an alien landholding licensing, which is 2.5 for the buyer, based on the property’s market value.
- Stamp duty: Stamp duty tax on the sale of property is 7.%% for the seller and 2.5% for the buyer, based on the property’s purchasing value.
How to minimize your tax liability
Few of us in the world want to pay more tax. Understanding tax credits and deductions you’re eligible for can significantly minimize your tax liability— if structured correctly. One of the most efficient ways to ease your tax liability is to reduce the amount of your gross income that is subject to taxes. Other ways include potentially increasing your retirement contributions, selling an investment that has lost value, or donating to a charity like Antigua and Barbuda’s National Development Fund that can potentially reduce your annual tax bills (if you itemize your deductions).
How we can help
Global Citizen Solutions is a boutique investment migration consultancy focused on finding the right residency or citizenship by investment program for individuals wishing to secure their future and become global citizens. Its multilingual team guides individuals and families from start to finish, providing expert advice considering freedom, mobility, taxation, and security.
Have a question about Antigua and Barbuda’s taxation policies? Contact our tax specialists today.
Frequently Asked Questions About Antigua Tax
Is Antigua tax free?
No, Antigua and Barbuda is not a tax-free country. No country is tax-free. However, residents and citizens of Antigua and Barbuda benefit from no capital gains tax, no wealth or inheritance taxes, as well as no personal income taxes.
Is Antigua a tax haven?
Antigua is certainly not a tax haven, but its tax scheme is considered progressive and moderate.
Does Antigua tax worldwide income?
The advantages of tax residency in Antigua and Barbuda is that there is no income tax on worldwide income or assets.
What is the VAT in Antigua?
Standard VAT Barbuda sales tax in Antigua stands at 15%.
What is Abst tax?
Abst stands for Antigua sales tax. It’s a value-added type of sales tax, levied on local consumption and paid by the consumer.
What is Antigua property tax?
Property tax in Antigua is assessed on the market value of the property and ranges from 0.20% to 0.50%. The tax rates depend on the classification of the property, whether it is residential or commercial. In general, residential buildings are taxed at 0.30%
Is Antigua and Barbuda a tax haven?
Antigua and Barbuda is not a tax haven, but it has a tax regime that offers many advantages for expats. For example, tax residents don’t pay Antigua inheritance tax or Antigua capital gains tax.
Do you pay taxes in Antigua?
Yes, there are taxes in Antigua, but they are low.
How do I become a tax resident in Antigua?
To acquire Antigua tax residency, you have to maintain a residential address in Antigua and Barbuda, spend a minimum of 30 days each year in the country, have an annual income above $100K, pay a flat tax of $20K per annum. Tax residents pay no income tax, no capital gains tax, no inheritance tax, no wealth tax on worldwide income or assets. Income generated in Antigua and Barbuda is taxed up to 25%.