Welcome to the world of St Lucia Taxes! As a responsible citizen or a curious visitor to the breathtaking island nation of St Lucia, understanding its tax system is crucial. St Lucia, located in the Eastern Caribbean, offers a favorable business environment, stunning natural beauty, and vibrant culture. Like any other country, St Lucia relies on taxes to fund public services and infrastructure development and maintain its economic stability.
In this guide, we will explore the key aspects of St Lucia’s tax system, including how to become a tax resident, the benefits of tax residency in St Lucia, and more. Whether you are a business owner, an employee, or an individual interested in the tax structure of St Lucia, this guide aims to provide you with valuable insights into the country’s tax landscape.
Learn more about St Lucia in our St Lucia Immigration Guide.
Welcome to St Lucia – The Helen of the West
With beauty comparable to that of Helen of Troy, St Lucia is an independent and self-sustainable paradise that has maintained elements both distinctly English and French. Nestled in the Eastern Caribbean sea, the stunning island emerges like a tropical paradise. With its lush rainforests, pristine beaches, and iconic tapered mountains known as the Pitons, this enchanting destination captivates visitors from around the world.
The Pitons – Gros Piton and Petit Piton – are a World Heritage Site that continues to blow visitors away with its majesty. Another popular attraction is the Sulphur Springs in Soufriere, the only drive-in volcano in the Caribbean. Here, visitors can enjoy a dip in the mud baths and benefit from their many minerals. The island also boasts a number of stunning sandy beaches, such as Marigot Bay and Anse Chastanet Beach, that range from secluded white sand coves to rugged stretches of golden or black volcanic sand.
Whether you seek adventure in the outdoors, relaxation on sun-kissed shores, or a glimpse into the island’s vibrant traditions, St Lucia offers an unforgettable experience for every traveler. It also offers a number of attractive tax benefits to both individuals and companies, which is why many consider it a tax haven.
Taxes in St Lucia for Individuals and Businesses
When it comes to St Lucia, the rules are pretty straightforward. Citizens are exempt from capital gains, dividends, and inheritance taxes, while legal entities are exempt from paying taxes on capital gains, dividends, and sometimes value-added tax (VAT).
To be considered a tax resident of St Lucia, an individual must spend a minimum of 183 days in the country each year. In order for a company to be considered a tax resident, it must be registered in St Lucia’s jurisdiction or managed through permanent missions.
If you do not meet these requirements, you will not be considered a tax resident in St Lucia and will have to pay taxes on any income earned on the island.
Taxes for Individuals in St Lucia
There are four main taxes paid by individuals in St Lucia, namely income tax, interest, social contributions, and tax on royalties. On the flip side, individuals do not pay taxes on capital gains or inheritance in the country.
In St Lucia, income tax is levied on the following:
- Business income
- Labor activity
Furthermore, taxation in the country is progressive, meaning individuals with more wealth pay higher tax rates. For both tax residents and non-residents, income up to EC$18,400 is not taxed and amounts above this are taxed at fixed rates.
Income tax rates on annual income in St Lucia (EC$)
|Income amount||Income tax rate|
|Amounts up to $18,400||0 percent|
|$18,401 — $28,400||10 percent|
|$28,401 — $38,400||15 percent|
|$38,401 — $48,400||20 percent|
|$48,401 and above||30 percent|
For both residents and non-residents of St Lucia, social contributions are five percent of your monthly income. Your social contributions are paid on your behalf by your employer to the National Insurance Corporation. The NIC then distributes them to disability allowances, pensions, and sickness benefits.
Tax rate on interest and royalties
The tax rate you pay on interest and royalties will depend on your status as a resident. Residents of St Lucia or the Caribbean Community (CARICOM – the trade and economic union of the Caribbean countries that is made up of 15 countries) pay a reduced rate in comparison to non-residents.
|Type of tax||For residents of St Lucia||For residents of CARICOM||For non-residents|
|Tax on interest||10 percent||15 percent||25 percent|
|Tax on royalties||10 percent||15 percent||25 percent|
How to Become a Tax Resident of St Lucia
As mentioned above, a foreigner is considered a tax resident in St Lucia if they spend 183 or more days in the country each year. In order to spend this amount of time in the country, you will need a temporary or permanent residence permit or St Lucia citizenship.
Ultimately, being a citizen of St Lucia provides you with the most benefits by optimizing both taxes and travel (having a St Lucian passport enables visa-free travel to the Schengen Zone and places like the UK, Singapore, and Hong Kong. Global Citizen Solutions ranks St Lucia 75th on our Global Passport Index based on factors like quality of life, enhanced mobility, and economic opportunities.
The fastest route to becoming a citizen of St Lucia is through the country’s citizenship by investment program, whereby you contribute to St Lucia’s economy by investing in real estate or a business, buying bonds, or making a non-refundable contribution to a government fund.
Real estate investment
A minimum investment amount of $200,000 is required. After five years, the investment property can be sold, and the investment returned. In addition to this, the investor must pay a state fee of at least $30,000.
Check out our article: Obtaining St Lucia Citizenship Through Real Estate Investment.
St Lucia business investments must be made into a government-approved project. As an individual, you will need to make a minimum investment of $3.5 million. If you plan on making a joint investment, the minimum amount required is $6 million, and each applicant must contribute a minimum of $1 million.
Buying government bonds
For this option, you must invest in a government bond that must be registered in your name and maintained for five years. The minimum investment amount required is $300,000.
For this route, you must make an economic contribution to the National Economic Fund, a special fund established by St Lucia’s government and used to fund government-approved projects. For single applicants, the minimum investment amount is $100,000.
It takes between three and six months to obtain a St Lucian passport under the citizenship by investment program. Following your investment, you must register in the country’s taxpayer database and receive your Tax number. You must then request a tax code to be issued to you by the Revenue Service, which will allow you to file your tax returns.
You can read more in our article: St Lucia Citizenship by Investment – The Ultimate Guide by Experts.
Why work with Global Citizen Solutions?
Global Citizen Solutions is a boutique investment migration consultancy firm focused on finding the right residency or citizenship by investment program for individuals wishing to secure their future and become global citizens. Additionally, we are an official CIP Licensed Marketing Agent, as authorized by the St Lucia Government. You can view our certificate below:
Global Citizen Solutions is proud to announce our official certification by the Government of St Lucia as an Authorized International Marketing Agent. By being granted this license, Global Citizen Solutions is allowed to promote and market St Lucia's Citizenship by Investment Program, as authorized by the island's Citizenship Investment Unit (CIU). This also means that we have exclusive rights to act as a CIP International Marketing Agent for St Lucia. You can find a copy of our certificate by clicking the image on the left.
Global Citizen Solutions is proud to announce our official certification by the Government of St Lucia as an Authorized International Marketing Agent.
By being granted this license, Global Citizen Solutions is allowed to promote and market St Lucia's Citizenship by Investment Program, as authorized by the island's Citizenship Investment Unit (CIU).
This also means that we have exclusive rights to act as a CIP International Marketing Agent for St Lucia.
You can find a copy of our certificate by clicking the image on the left.
Filing Tax Returns
You must complete the TD4 or TD5 form, which you can obtain from your employer. You must collect receipts that confirm your expenses in order to receive a tax deduction. You can submit your documents and file a tax return online. The deadline to file your tax returns is 31 March.
You must complete the TD4, TD5, TD6, and contractor forms and create a list of your company’s employees. You must then submit your documents in a sealed envelope to the tax office by 31 January. Late submissions will be fined for each month that submissions are delayed.
Property Taxes in St Lucia
Real estate purchases in St Lucia are subject to the following fees:
Property transfer tax
Buyers (both individuals and companies) pay a two percent transfer tax.
Both buyers and sellers pay stamp duty. Buyers pay a two percent stamp duty, while the seller’s rate will depend on their residency status. The value of the real estate will define the rate paid by residents, while non-residents pay a ten percent rate.
Tax rates for sellers who are St Lucian residents
|Real estate value (EC$)||Rate|
|$150,001 and above||5 percent|
Annual property tax
For residential property, the annual property tax is 0.25 percent. For commercial property, it is 0.4 percent. This rate is the same for companies and individuals, whether you are a resident or not.
Taxes for Legal Entities in St Lucia
As mentioned above, a company must be registered in St Lucia’s jurisdiction or managed through permanent missions in order to be considered a tax resident of the country. Both resident companies and non-resident companies will need to pay 30 percent income tax but will not pay tax on capital gains or dividends.
Companies that have a sales turnover greater than EC$400,000 per year must pay value-added tax (VAT) at the standard rate of 12.5 percent. VAT exemptions apply to educational, financial, insurance, medical, and transport service, rental housing, fuel, water, electricity, goods for export, and goods for sale in duty-free shops.
Tax on interest and royalties
Resident companies pay tax on interest and royalties at a rate of ten percent. Resident companies of CARICOM pay a rate of 15 percent, while non-resident companies pay a rate of 25 percent.
Double Taxation Agreements between St Lucia and Other Countries
As a member of the Caribbean Community (CARICOM), St Lucia has double taxation agreements with the following countries:
- Antigua and Barbuda
- St Kitts and Nevis
- St Vincent and the Grenadines
- Trinidad and Tobago
Benefits of St Lucia Tax Residency
There are a number of benefits to being a tax resident in St Lucia:
- Individuals do not pay income tax on yearly earnings lower than EC$18,400.
- Individuals pay tax on interest and royalties at 10 percent (by comparison, non-residents pay 15-25 percent).
- Companies are VAT-exempt on yearly sales turnover up to EC$400,000.
- Companies pay tax on interest and royalties at 10 percent (non-residents pay 15-25 percent).
- Residents selling real estate pay a five percent stamp duty (non-resident sellers pay ten percent).
In conclusion, St Lucia not only captivates with its natural beauty and vibrant culture but also offers attractive tax benefits for those considering establishing residency or investing in the island. With its low personal and corporate tax rates, no capital gains tax, and various incentives for international businesses, St Lucia has positioned itself as a favorable destination for individuals and companies seeking to optimize their financial affairs.
The advantages of St Lucia taxes, coupled with its stable economy and political environment, make it an appealing choice for those looking to grow their wealth and enjoy a high standard of living in a tropical paradise. Whether you’re an entrepreneur, investor, or retiree, the benefits of taxes in St Lucia add an extra allure to an already enticing destination. So, take advantage of the opportunities that St Lucia presents and embark on a path of financial prosperity in this Caribbean haven.
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Frequently Asked Questions about St Lucia Taxes
1. What taxes do you pay in St Lucia?
In St Lucia, you will need to pay income tax (rates are progressive based on income amount), VAT, stamp duty, and tax on interest and royalties. The rate you pay will vary depending on whether you are a tax resident in St Lucia or not.
2. Is St Lucia a tax haven?
A country is considered a tax haven when it offers individuals and/or businesses little to no tax liability. Countries in the Caribbean are considered some of the world’s most popular tax havens, including St Lucia.
3. Do you pay property taxes in St Lucia?
Yes, you will need to pay property taxes in St Lucia. For residential property, the rate is 0.25 percent of the Open Market Value. For commercial property, the rate is 0.4 percent of the Open Market Value.
4. Is there VAT in St Lucia?
Yes, there is value-added tax (VAT) in St Lucia. The standard VAT rate is 12.5 percent.