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 and Barbuda 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 and Barbuda, obtain a travel-friendly passport, and even set up their Antigua tax residency on the island.
In this guide, we’ll unpack everything you need to know about taxes in Antigua and Barbuda, 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 and Barbuda
- 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. One of the wealthiest nations in the Caribbean, Antigua and Barbuda is blessed with nature and a warm, balmy climate, and 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 entrepreneurs, digital nomads, investors, expat families, and business-minded individuals looking to enhance their personal and financial freedoms.
Antigua and Barbuda citizenship
Investors can acquire Antigua citizenship by either investing in real estate or business. Alternatively, foreign nationals can also make a non-refundable donation of $100,000 to the National Development Fund.
Applicants must go through a strict due diligence check carried out by the Barbuda Investment Authority in order to acquire an Antigua and Barbuda passport. Investing in Antigua and Barbuda rewards expats with a myriad of opportunities, including visa-free travel to over 140 destinations worldwide, including the United Kingdom, Europe’s Schengen Area, Hong Kong, and more.
Antigua and Barbuda tax benefits
With Antigua and Barbuda citizenship comes the right to become a tax resident of Antigua. Why pursue tax residency, one may wonder? In short, the Antigua and Barbuda tax regime is favorable and considered moderate, enabling individuals to benefit from no capital gains taxes or estate taxes and no personal income taxes. The currency is the Eastern Caribbean Dollar (EC$), 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 with which Antigua has taxation treaties, such as the Caribbean 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 such as the absence of 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 and wealth tax
Antigua Personal Income Tax
In 2016, the government of Antigua and Barbuda introduced 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.
Non-residents, however, pay a withholding tax of 25 percent on dividends, interest, and royalties gained in the nation.
Antigua Corporate Tax
Antigua and Barbuda’s corporate tax rate for domestic companies is currently 25 percent, with a branch tax rate of 25 percent and no capital gains tax. A company is classified as a ‘resident’ if:
- It is incorporated or registered as an external company in Antigua and Barbuda
- It is centrally managed and controlled in Antigua and Barbuda
- It operates in Antigua and Barbuda
- It receives income from Antigua and Barbuda
- Owns assets in Antigua and Barbuda that are used to generate income for the company
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. This tax is applied on a sliding scale with rates ranging from zero to 25 percent of gross income and is due quarterly.
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 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 visibility 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. However, you cannot establish a tax residence elsewhere if you intend to remain a tax resident on the island.
The requirements to establish tax residency are:
Spend 183 days per year in Antigua and Barbuda, or maintain a residential address in Antigua and Barbuda. The latter involves:
- Spending a minimum of 30 days each year in the country
- Having an annual income above $100,000
- Paying a flat tax of $20,000 per annum
Both options have their benefits. For example, if your job requires you to travel frequently, you can choose to maintain a residential address on the island. Once you apply for tax residency, it takes between one and four months to complete the process and obtain your tax ID number.
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 percent to 0.5 percent. 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 percent to 20 percent, depending on the length of time the property has been owned.
- Transfer tax: Non-residents must obtain an Alien Landholding License, which is 2.5 percent for the buyer, based on the property’s market value.
- Stamp duty: Stamp duty tax on the sale of a property is 7.5 percent for the seller and 2.5 percent for the buyer, based on the property’s purchasing value.
- Sales tax: Similar to VAT, ABST – or Antigua and Barbuda sales tax – is generally fixed at 15 percent. For hotels and holiday accommodations, however, this lowers to 10.5 percent and 12.5 percent, respectively.
How to Minimize Your Tax Liability
Few of us in the world want to pay more taxes. 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).
As you can see, Antigua and Barbuda residents benefit from a favorable tax environment of no capital gains tax, no estate taxes, and no personal income tax rates. Additionally, as tax residents, both individuals and companies can enjoy fantastic benefits on this beautiful island that many consider a tax haven.
Why use Global Citizen Solutions?
Global Citizen Solutions is a multidisciplinary firm offering bespoke residence and citizenship solutions in Europe and the Caribbean. In a world where the economy and politics are unpredictable, having a second citizenship opens up opportunities and creates flexibility for you and your family.
- Authorized International Marketing Agent. Global Citizen Solutions have official certification by the Government of Antigua and Barbuda to promote and market their Citizenship by Investment program. You can find a copy of our certificate by clicking the image on the right
- Global approach by local experts. We are corporate members of the Investment Migration Council, with local expertise in all five Caribbean CBI programs.
- 100 percent approval rate. We have never had a case rejected and will offer you an initial, free-of-charge, due diligence assessment before signing any contract.
- Independent service and full transparency. We will present to you all the investment options available, and all expenses will be discussed in advance, with no hidden fees.
- An all-encompassing solution. A multidisciplinary team of immigration lawyers, investment specialists, and tax experts will take into consideration all your and your family's mobility, tax, and lifestyle needs.
- Confidential service and secure data management. All private data is stored within a GDPR-compliant database on a secure SSL-encrypted server.
Frequently Asked Questions About Antigua and Barbuda 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.
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 (Value Added Tax) in Antigua and Barbuda stands at 15 percent.
What is ABST tax?
ABST stands for Antigua and Barbuda sales tax. This is a value-added type of sales tax that is 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 0.1 percent to 0.5 percent. The tax rates depend on the classification of the property, whether it is residential or commercial. In general, residential buildings are taxed at 0.3 percent.
Is Antigua and Barbuda a tax haven?
Antigua and Barbuda is not a tax haven, but it has a progressive and moderate tax regime that offers many advantages for expats. For example, tax residents don’t pay inheritance tax, personal income tax, wealth tax, or capital gains tax.
Do you pay taxes in Antigua?
Yes, there are taxes in Antigua, but they are low. The rate you pay for some taxes can be influenced by whether you are a tax resident or not. For example, residents do not pay personal income tax, while non-residents do.
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 $100,000, and pay a flat tax of $20,000 per annum. Tax residents pay no income tax, no capital gains tax, no inheritance tax, and no wealth tax on worldwide income or assets. Income generated in Antigua and Barbuda is taxed up to 25 percent.
Does Antigua and Barbuda offer specific tax benefits for certain sectors or industries?
When it comes to sales tax, which is similar to value-added tax (VAT), hotels enjoy a lowered rate of 10.5 percent while holiday accommodations enjoy a rate of 12.5 percent. The standard rate is 15 percent.