Antigua & Barbuda is one of the Caribbean Sea’s most stunningly beautiful nations, a twin-island country full to the brim with culture, excellent cuisine, natural wonders, friendly people, and booming businesses.
The nation is well known for being a major touristic hotspot, but it also has a strong reputation for housing one of the world’s most popular citizenship by investment programs. Global high net worth individuals have the chance to become Antiguans by investing in real estate, or by donating to either a government-managed fund or the University of West Indies fund. All of the options are extremely affordable and the program awards successful applicants with a passport that ranks 29th worldwide and provides visa-free travel to over 150 destinations globally including the United Kingdom, EU, Hong Kong, and more.
But there remains one aspect of interest in Antigua & Barbuda that many do not know about; taxes. Antigua and Barbuda’s tax regime can be a major attraction for global investors, especially those who must pay obscene amounts of capital in taxes in their permanent residence nations. Although not an out-and-out tax haven, Antigua and Barbuda do have a taxation structure that many could find extremely favorable.
In this piece, we will discuss Antigua’s tax structure in detail and guide you through all the taxes imposed by the Antiguan inland revenue department and how the Antigua and Barbuda tax regime can interest you.
Personal income tax is extremely important when considering maintaining your wealth; and the government of Antigua and Barbuda understand this issue completely, which is why it does not impose any type of income tax on individuals whether it be from local or worldwide income.
Individuals, be its tax residents (who spend 183 days per year in Antigua) or non-resident citizens, are exempt from any type of tax on their income no matter how much money they make, which makes Antigua and Barbuda an amazing place to reside if you have high income but worry about that bracketed tax that can reach colossal amounts. Those looking to obtain financial freedom should consider becoming citizens of the nation.
A person maintain residency in Antigua and Barbuda is, of course, subject to some other indirect taxes. Antigua & Barbuda sales tax (ABST) on goods and services, for example, is an indirect tax that a business must pay which reflects on individuals.
ABST has a flat rate of 15%, and as most goods and services are taxable under ABST individuals will see that tax mirrored in the pricing of the supplies or services they are buying. Sales tax like ABST is standard practice in most countries of the world, and sales tax differs from one nation to the other with the sales tax in the country being within the global average range.
There are other direct taxes that you would find in other nations that persons in Antigua and Barbuda are exempt from. For example, the inland revenue department and the government of Antigua and Barbuda do not impose any capital gains tax, wealth tax, inheritance, or withholding tax on individuals.
Antiguan dweller citizens do not have to register or pay any taxes on interest, dividends, royalties, or fees for registered technical services.
When it comes to business tax is always a major concern. Taxation must be calculated within the company starting capital and a business should understand what assets are taxable and what type of tax they are subject to.
Some taxes, like corporate tax, is paid on annual basis, while other taxes such as stamp duty (or customs), transfer tax, and others are annually but per activity, which makes forecasting their amount more complex.
Thankfully, Antigua and Barbuda do provide companies with a favorable tax regime. Corporate tax on gross income is based on an annual flat tax rate of 25%, while branches of companies are also liable for corporate tax under the country’s act, paying a similar tax rate of 25%.
Registered companies do not have to pay any capital gains tax, as the government does not impose any on businesses that obtain capital gains in Antigua and Barbuda. This is one of the many tax incentives a company can enjoy in the nation
Dividends are included in taxable income, while losses may be carried forward up to six years and may reduce taxable income to 50%.
A company must register for value-added tax of course, which is basically Antigua and Barbuda sales tax (ABST) or VAT. This tax is based on a rate of 15%, but some companies can apply for exemption, while hotels can enjoy a reduced rate of 12.5%. Annual VAT tax filing must be done through the inland revenue department.
The minimum taxable value of supplies or services a company must achieve to be taxable under sales tax in the country is 300,000 XCD. Companies that earn less than the minimum taxable value cannot be registered for value-added tax. Sales tax must be filed by companies within 30 days after the end of the tax period.
Companies must also take into consideration customs duties of international goods and act accordingly.
Stamp duties are another important tax in Antigua to consider, as stamp tax on the selling and buying of shares is set at a flat tax rate of 5% for the seller and 2.5% for the buyer on the higher market value of the shares or their book value.
Unincorporated businesses tax is levied on a sliding scale with rates ranging from 0% to 25% of gross income, whether it is local or worldwide income derived from other countries. Non-residents are subject to unincorporated business taxation on income derived from within Antigua and Barbuda only. Unincorporated business tax is due quarterly instead of annually.
There are plenty of incentives for commercial corporations to take advantage of, but they depend on the type of commercial activity they pursue and what type of corporation they are registered as.
Another important issue to consider when looking for more financial leeway in terms of taxes is property tax.
Antigua and Barbuda do impose property tax on both residential and commercial property. The tax levied on the property depends on the use of the property itself, and ranges between 0.2% and 0.5% of its market value.
International non-residents who own undeveloped land in the country in the nation must pay 10% to 20% of the worth of the undeveloped land.
There is also a stamp customs on the sale and purchase of property in the country; the rates are 7.5% for the seller and 2.5% for the buyer. This tax is levied annually and applies to all types of realty be it residential or commercial.
Since income is tax-free in Antigua and Barbuda, being a tax resident in the traditional sense carries much less weight. Any person who maintains their residence in the twin-island nation for six months or more is subject to tax.
More interestingly, the stunning island nation’s immigration act does offer a permanent residence program for foreign nationals wishing to gain insurance against the turbulence of life. The program is based on flat tax rates that a foreign national must pay annually.
Here are the main requirements to qualify for the program:
Antigua does impose customs on foreign goods and services. These customs are set in accordance to the CARICOM Common External Tariff. Also, a revenue recovery charge is levied on any foreign goods imported from foreign nations and produced within Antigua’s borders.
A double taxation treaty means that any goods or services taxed in one of the two signatory countries shall not be taxed in the other. Sometimes this means people will get an exemption of taxes in the other country or the return will be in the form of tax credit.
Tax treaties are a great way to enhance your global financial portfolio while maintaining a low-tax yield.
Antigua and Barbuda offers one of the world’s most popular investment-based naturalization programs in the world. Investors and their family members can become citizens of the nation, gaining insurance against the unpredictability of life and insurance against fluctuating financial situations in their home countries for a very affordable price.
An international applicant can add their spouse as well as their dependent children, parents, and grandparents (including in-laws) to the same application. The program is one of the best worldwide when it comes to large families, as it has a route specifically designed for families of six members or more. This means families with large compositions can get the best yield for their money through this program.
Here are the main options an international applicant can invest in to become a citizen:
Foreign investors do not require residence in Antigua prior to applying and the application process takes a period of 3-6 months, making it one of the quickest programs in the world.
Applicants and their qualifying family members need only reside in the nation for 5 days a year, and the stunning beaches, luxury resorts, fine cuisine, and endless activities in the country make those five years one of the best family trips possible.
No, there are some taxes that need to be paid in Antigua, but it does not impose any taxes on income, capital gains, inheritance, wealth, or withholding on individuals.
No, there is not any inheritance tax in Antigua.
No, it does not have any tax on income for individuals.
Yes, it does on a flat rate of 15%. Some goods and services may be exempt.
Not technically, although it does have a very favorable tax regime.
You must live 6 months a year in Antigua. Also, there is a tax based program that grants indefinite residence in Antigua, here are the requirements:
Maintain a residential address
Spend a period of at least one month a year in the country
Annual financial international or local income must exceed US$100,000
Pay a flat tax of US$20,000 per annum to the inland revenue services department
No, there are not.
Yes, it is calculated based on the use and worth of the unit and ranges between 0.2% and 0.5%.
There is no tax on income for individuals in Antigua, so the rates would be 0%.