St Kitts Taxes: An In-depth Guide for Investors

St Kitts and Nevis boast a pro-investor environment, upheld by a stable economy and significant financial benefits offered by St Kitts taxes. This guide will take you through the tax system in St Kitts, including tax rates, benefits, and gaining tax residency.

• St Kitts taxes overview
• Individual taxes in St Kitts
• St Kitts corporate taxes
• Property taxes in St Kitts
• St Kitts tax benefits
• Obtaining St Kitts tax residency
• St Kitts taxes vs other Caribbean tax havens

St Kitts and Nevis Tax Regime

St Kitts and Nevis is considered one of the most tax-friendly nations in the world as the country does not impose personal income tax. While St Kitts tax haven status isn’t official, tax residents do not pay income, gift, capital gains, or inheritance taxes.

Tax payments transferred through businesses and banks in St Kitts and Nevis are in the Eastern Caribbean dollar (EC or XCD), the country’s official currency, which is pegged to the US dollar at a fixed rate of 2.7 XCD to 1 USD.

Who is liable to pay tax in St Kitts and Nevis?

Tax resident

According to St Kitts tax laws, an individual residing in St Kitts and Nevis for more than 183 days a year is a tax resident. Companies registered in St Kitts and Nevis or operated and managed from there are also considered tax residents.

Non-tax resident

Being a St Kitts and Nevis citizen living outside the country does not automatically make you a tax resident. However, as a non-tax resident, you can still be required to pay taxes on investments such as St Kitts and Nevis real estate.

Companies not registered or managed in the country can also be regarded as non-tax residents. However, non-resident companies selling goods and services in St Kitts and Nevis must pay taxes on the income earned in the country.

Types of Taxes in St Kitts and Nevis for Individuals

St Kitts does not impose individual income taxes, regardless of tax residency status. The Saint Christopher and Nevis Income Tax Act was introduced in 1967 and abolished in 1980. Non-tax residents pay a 15 percent tax on dividends, interest, and royalties generated in St Kitts and Nevis.

Withholding taxes: Non-tax residents of St Kitts and Nevis must pay a withholding tax, which is fixed at 15 percent.

Social contributions: These are taxes withdrawn from employees’ salaries. The rate for social security contributions is split between employers and employees, with employees contributing five percent.

Stamp duty: Buyers and sellers of real estate in St Kitts and Nevis pay six to ten percent stamp duty on transactions.

Unincorporated business tax: If an individual or consortium does business in St Kitts and Nevis as an entity not registered according to the Companies Act, they must pay unincorporated business tax and a rate of four percent on the sales of goods and services.

Building/land tax: Property owners in St Kitts must pay land or building tax, which applies to residential, commercial, agricultural, and institutional real estate. The tax rates vary depending on the property type and whether it is in Nevis or St Kitts.

Taxes paid by individuals

Corporate Taxes in St Kitts

Corporate income tax: While neither residents nor non-residents pay income tax in St Kitts, both resident and non-resident businesses must pay taxes there. The St Kitts and Nevis corporate tax rate is fixed at 25 percent and applies to the company’s net profit.

Tax resident companies pay corporate taxes on their global income, whereas non-resident companies pay corporate taxes only on the income earned in St Kitts and Nevis. Organizations in the country pay their corporate taxes at the end of their fiscal year.

VAT: The standard VAT rate in St Kitts and Nevis is 17 percent. VAT is generally included in the cost of the products. A VAT of 10 percent is charged for services in hotels and restaurants. There are a few things exempt from St Kitts sales tax:

• Vehicle, health, life, and property insurance
• Transportation
• Educational services
• Interest on loans
• Electricity
• Water for domestic purposes
• Medical services

Please note that if you are VAT registered, you must file a monthly VAT tax return before the 15th of the following month.

Withholding Tax: Tax-resident businesses of St Kitts and Nevis do not pay withholding taxes as they are included in the company’s taxable profit. Non-tax-resident businesses are liable to pay withholding tax. Non-resident companies pay a 15 percent withholding tax on dividends, royalties, and interest, which can be deterred with a St Kitts taxes calculator.

Social contributions: Businesses contribute six percent of their employees’ salaries toward social security.

Building/land tax: Building tax is charged on commercial properties owned and operated by a business, such as hotels, restaurants, and offices. The tax rate is between 0.2 and 0.3 percent.

Corporate tax break

Companies operating in the tourism, agriculture, information technology, or renewable energy sectors may qualify for a tax holiday of up to 15 years. After being granted a tax concession by the St Kitts and Nevis government, they will not be liable to pay tax on company profits.

Taxes paid by legal entities

Property Taxes in St Kitts and Nevis

Purchase of Property: Investors are required to apply for an Alien Landholding LicenseAlien Landholding License (ALHL) to purchase property in St Kitts and Nevis. The cost of the license is ten percent of the property value. Investors seeking St Kitts and Nevis real estate citizenship do not need to apply for an ALHL.

Property taxes to pay when buying real estate in St Kitts and Nevis include an ALHL and a six to ten percent stamp duty.

Property ownership: The annual property tax rate in St Kitts and Nevis depends on its location and use. Agricultural and institutional properties in St Kitts are excluded from taxes, but the same properties are liable for property taxes in Nevis.

Selling real estate in St Kitts and Nevis: You must pay a six to ten percent stamp duty. This tax rate depends on various factors, like location and usage. Property sellers do not pay St Kitts capital gains tax.

VAT and Consumption Taxes

St Kitts Value Added Tax (VAT) is a consumption tax on goods and services charged at a rate of 17 percent. A reduced 10 percent rate applies to tourism, including hotel accommodations and restaurant services. Items like basic food, prescription medicine, medical equipment, and educational materials are VAT-exempt.

Import tax

A Customs Service Charge and Excise Tax is imposed on specific goods imported into St Kitts and Nevis. These taxes form a significant part of government revenue, contributing to public services and infrastructure development. Electronics generally have an import tax rate of 15 to 20 percent.

Importing a vehicle into St Kitts and Nevis can be relatively expensive. The import tax is about 45 percent of the vehicle’s value, depending on age and type. Vehicle importers also pay a Vehicle Environmental Levy (VEL) between EC $1,000 and EC $5,000.

St Kitts and Nevis Tax Benefits

• St Kitts and Nevis offers one of the few Caribbean taxes that does not include income tax.
• Though the standard VAT rate is 17 percent, the tourism sector is taxed at a reduced rate of 10 percent
• There is no VAT on some goods and services in St Kitts and Nevis. For instance, there is a 0 percent VAT rate on goods like flour, rice, sugar, milk, oats, and bread. Some goods and services like water supply, electricity, and educational services are exempted from VAT.
• Property taxes in St Kitts and Nevis are relatively low compared to other Caribbean countries.
• Foreigners making a business investment in St Kitts and Nevis may qualify for a 15-year tax holiday.

How to become a St Kitts and Nevis tax resident?

The St Kitts and Nevis tax residency requirements, you must stay there for at least 183 days a year. This would require obtaining a visa allowing you to live in St Kitts and Nevis legally, according to St Kitts and Nevis immigration requirements.

St Kitts and Nevis citizenship

Foreign nationals can obtain a St Kitts and Nevis passport and tax residency by investing in the St Kitts and Nevis citizenship by investment program. The program provides four investment options:

• Donation to the Sustainable Island State Contribution: Make a non-refundable contribution of $250,000 to the Sustainable Island State Contribution (SISC).
• Approved real estate investment: Investment in shares of an approved real estate development or purchase of a condominium unit valued at least $325,000.
• Approved private home purchase: Purchase a single-family private home worth at least $600,000.
• Donation to the Public Benefit Option: Make a non-refundable contribution of $250,000 to the Public Benefit Option (PBO).

The total St Kitts citizenship cost includes government fees and legal expenses.

St Kitts vs Other Caribbean Tax Havens

St Kitts and Nevis sits alongside other Caribbean tax havens like the Cayman Islands, Antigua and Barbuda, and the Bahamas as there is no personal income tax, capital gains tax, or inheritance tax. While individuals avoid paying taxes on income, companies must pay a corporate income tax, which can make islands like the Cayman Islands more appealing.

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.

So, why work with Global Citizen Solutions to obtain St Kitts and Nevis citizenship?

• Authorized International Marketing Agent. Global Citizen Solutions have official certification by the Government of St Kitts and Nevis 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 Taxes in St Kitts and Nevis

Is St Kitts a tax haven?

While not officially known as one, St Kitts could be considered a tax haven as the Saint Kitts and Nevis income tax rate is set to zero.

What are the tax advantages of St Kitts?

With the Global Citizen Solutions Global Intelligence Unit highlighting tax optimization in its retirement guide for US citizens, the primary tax advantage of St Kitts is that you stop paying taxes on your personal income, capital gains, wealth, and inheritance.

Does St Kitts tax foreign income?

St Kitts does not tax individuals’ foreign income. However, a company registered in St Kitts must pay tax on its worldwide income.

What taxes do you pay in St Kitts?

Residents in St Kitts pay low taxes and in some cases, none at all. There is no personal income tax on local or foreign income, and no capital gains tax, inheritance tax, or gift tax. The main taxes area property tax, Value-Added Tax (VAT), and import taxes.

Do Retirees pay taxes in St Kitts?

Like other individuals, including employees and students, retirees in St Kitts and Nevis do not pay taxes on their retirement income.

What is the capital gains tax in St Kitts?

The St Kitts and Nevis tax system does not impose capital gains taxes.