The Antigua and Barbuda tax framework is favorable to expats, enabling tax optimization and alleviating some tax burdens. This guide will reveal everything you need to know about Antigua taxes for foreign investors, including:
Antigua and Barbuda Tax Facts
Tax Authority: | The Inland Revenue Department is the government authority that enforces tax law in Antigua and Barbuda. |
Personal Income Tax: | Antigua tax residents living in the country do not pay personal income tax. |
Corporate Income Tax: | Companies registered in St Kitts and Nevis pay a flat 25 percent corporate tax. |
Primary Tax Forms: | No more printed forms for payment or tax declaration are issued by the Antigua and Barbuda Inland Revenue Department. |
Tax Year: | A company’s fiscal year-end determines its tax year. |
Tax Deadline: | 31 March is the tax deadline for self-employed Antigua and Barbuda tax residents and international businesses operating in the country. |
Currency: | Antigua and Barbuda taxes are paid in Eastern Caribbean Dollar (XCD or EC), the country’s official currency, which is pegged at 2.70 XCD to 1 USD. |
Tax Treaty: | Antigua and Barbuda have several tax agreements but does not have a double tax treaty with the United States. |
Personal Income Tax in Antigua and Barbuda
In 2016, the Antigua and Barbuda government abolished personal income tax. In short, this means Antigua and Barbuda tax residents pay no personal income taxes in the country.
The government made this move to attract foreign interest and position itself competitively among its Caribbean neighbors.
Non-residents pay a 12.5 percent withholding tax on dividends, interest, and royalties earned in the country.
Self-employment tax
If you earn self-employment income in Antigua and Barbuda, the personal income tax rates are 0, 8, or 25 percent. An Antigua and Barbuda tax calculator can help determine the correct tax rate. Self-employed Americans and other foriegners must register with the Antigua and Barbuda Inland Revenue Department and obtain an Antigua Tax Identification Number.
Discover the value of a Antigua and Barbuda Passport
Antigua Corporate Tax
Domestic companies in Antigua and Barbuda are taxed at a flat corporate tax rate of 25 percent. The classification for a “resident company” is as follows:
- Incorporated or registered as an external business in Antigua and Barbuda
- Managed and regulated in Antigua and Barbuda
- Trades in Antigua and Barbuda
- Receives earnings from Antigua and Barbuda
- Owns assets in Antigua and Barbuda that generate revenue for the company
In this case, a resident company pays tax on its worldwide income. A non-resident company is taxed only on earnings derived or sourced from Antigua and Barbuda. This tax is from 0 to 25 percent of gross income and is payable quarterly.
Foreign tax relief: Foreign tax credits are generally not applicable unless the taxes have been paid in a British Commonwealth country that allows similar relief for Antigua and Barbuda taxes or where a tax treaty allows for such a credit.
Antigua tax benefits for IBCs
Antigua and Barbuda’s tax regime and laws offer the following benefits for International Business Companies (IBCs):
- No Caribbean taxes of any kind to pay or tax return to file in Antigua and Barbuda
- No public records of shareholders or beneficiaries
- Fast company incorporation, usually within one day
- 100 percent foreign ownership of company shares
- No minimum capital necessity for incorporation and operation
- One person can be the sole shareholder and sole director of the IBC
Social Security in Antigua and Barbuda
Public and private sector companies and their employees must contribute to Social Security on insurable earnings to receive social welfare benefits. The Antigua and Barbuda Social Security Tax rate is 14 percent for private-sector companies and 13 for public-sector companies.
Private sector employers pay 8 percent, and employees pay 6 percent. Public sector employers pay 8 percent, and employees pay 5 percent.
Medical Benefits Scheme (MBS) contributions
Employed: Employees over 16 and under 60 pay a tax of 3.5 percent of their gross wages. Employers contribute the same amount. Employees aged 60 to 69 pay a 2.5 percent tax on their gross wages. Employers are not required to contribute. Employees aged 70 and over and their employers are not required to contribute. Self-employed: Self-employed individuals aged 16 to 59 pay a tax of 5 percent on their gross earnings. Self-employed individuals aged 60 to 69 pay a tax of 5 percent on their gross earnings. Self-employed individuals aged 70 and over are not required to contribute.
Antigua and Barbuda Tax Benefits
- No personal income tax: Antigua and Barbuda tax residents do not pay income tax on local or foreign income sources.
- Tax-free assets: There is no wealth, inheritance, or capital gains tax.
- Corporate tax breaks: Companies may be able to exclude profits from taxes for up to 20 years.
- Certain tax holidays: Qualified companies can utilize customs duties exemptions for specific goods.
- Tax residency program: Non-residents can establish tax residency through the tax residence program by paying a flat annual tax of $20,000.
- No Controlled Foreign Company regulations: Antigua and Barbuda tax law does not enforce Controlled Foreign Corporation (CFC) regulations, allowing residents to own offshore companies without affecting the tax obligations of those entities.
Taxes in Antigua and Barbuda for American Expats
The Inland Revenue Department (IRD) is the government authority responsible for enforcing tax laws according to the Antigua and Barbuda Tax Administration and Procedures Act No. 12 of 2018 (TAPA). The Customs and Excise Division of the IRD collects duties and taxes on imported goods. Customs duty is charged on imported goods, but goods from CARICOM (Caribbean Community) are duty-free.
By becoming an Antigua and Barbuda citizen through the Antigua and Barbuda citizenship program, US citizens can avoid double taxation as Antigua and Barbuda has a zero per personal income tax.
The US Foreign tax credit for 2024 allows US citizens living in Antigua and Barbuda to eliminate $120,000 from their taxable income. Foreign nationals who pay taxes to countries in the British Commonwealth also qualify for foreign tax credits.
The Antigua and Barbuda government actively encourages company owners to transfer their headquarters to the country with friendly tax incentives for resident and non-resident companies. Moreover, individuals holding Antiguan citizenship do not pay taxes on worldwide income or assets held in foreign financial institutions.
Becoming an Antigua and Barbuda Tax Resident
Foreign can gain tax residence in Antigua and Barbuda, which is efficient for protecting their income and assets while maintaining visibility for tax purposes. The Antigua and Barbuda permanent residency program was created to attract high-earning foreign nationals to invest in the island.
Antigua and Barbuda tax residency requirements:
Spend 183 days per year in Antigua and Barbuda or have a residential address in Antigua and Barbuda. The requirements for the permanent residency program also include:
- Spending a minimum of 30 days in the country annually
- Earning an annual income of at least $100,000
- Paying a flat annual tax of $20,000
- Obtaining a certificate of residency and Antigua Taxpayer Identification Number (TIN)
The Antigua and Barbuda visa requirements and benefits for both options have advantages and disadvantages. For example, if your US job requires you to travel frequently, you can choose to have a residential address on the island. Once you apply for tax residency in Antigua and Barbuda, it takes one to four months to complete the process and receive your tax ID number.
Advantages of tax residency:
- No personal income tax on earnings or assets
- No capital gains tax
- No inheritance tax
- No wealth tax
Antigua and Barbuda citizenship
Foreign investors can get Antigua and Barbuda citizenship by investment as an alternative to the permanent residency program. The program allows foreign nationals to make one of several investments, including contributing to the government fund, Antigua and Barbuda real estate investment, establishing a business, or donating to the University of the West Indies Fund.
Successful applicants receive an Antigua and Barbuda passport and the right to reside in Antigua and Barbuda permanently.
Take a look at our Antigua and Barbuda Citizenship by Investment Ultimate Guide
Other Taxes to Consider in Antigua and Barbuda
Sales tax: Like VAT, Antigua and Barbuda sales tax is 17 percent as of 1 January 2024. However, hotels and vacation accommodations have a lower rate of 10.5 percent and 12.5 percent.
How to pay Antigua sales tax
Antigua and Barbuda sales tax is predominantly collected through the country’s Value-Added Tax (VAT) system. The tax is applied to most goods and services sold within the country, including imports. Consumers pay sale tax at the point-of-sale when they purchase goods or services.
VAT-registered businesses are responsible for collecting VAT from their customers and paying the tax when they submit their tax return. They must issue invoices showing the VAT amount charged on each transaction.
Property taxes for buyers, sellers and real estate owners in Antigua
- Property tax: Antigua and Barbuda property taxes range from 0.1 to 0.5 percent of the property value. Non-residents who own undeveloped land must pay an undeveloped land tax, which is 10 to 20 percent of the value of the land, depending on how long the property has been owned.
- Transfer tax: Non-citizens must obtain an Alien Landholding License (ALHL) to legally buy Antigua and Barbuda real estate, which is 2.5 percent for the buyer based on the property value.
- Stamp duty: Based on the property’s value, stamp duty on Antigua and Barbuda real estate sales is 7.5 percent for sellers and 2.5 percent for buyers.
Annual property taxes
Antigua property tax is assessed on the property’s market value and is imposed at a rate of 0.1 to 0.5 percent. The tax rates depend on the property type, whether residential or commercial. Generally, residential properties are taxed at 0.3 percent.
How much is land tax in Antigua?
Antigua and Barbuda land tax is included in the annual property tax, which is calculated based on the property’s market value.
Land tax rates
- Unimproved land (vacant land): Typically 0.3 percent of the market value.
- Improved land (land with buildings): Applied to both the land and the structures within, with separate rates for each. The land is generally taxed at 0.3 percent, and the building adds 2 percent.
Certain land categories may be exempt from land tax or pay reduced rates, including land owned by charitable or religious institutions, agricultural land, and specific government properties.
How to Reduce Taxes as a Foreign Investor
Few among us are enthusiastic about paying more taxes. Utilizing tax credits and deductions as a US citizen can reduce your tax liability—if done correctly. One of the most effective ways to minimize tax liability is to reduce the gross income subject to taxation. This can be done by filing Form 1116 for the foreign tax credit with IRS Form 1040 when submitting a US tax return.
Other foreign investors and retirees in Antigua and Barbuda is to increase retirement contributions to IRAs, SIPPs, 401ks, and Social Security accounts. Selling an investment that has lost value or donating to a national fund like Antigua and Barbuda’s National Development Fund can reduce your annual tax bill by itemizing your deductions.
Antigua and Barbuda residents enjoy a tax-friendly environment with no capital gains tax, estate taxes, or personal income taxes. As tax residents, individuals and companies banking in Antigua and Barbuda enjoy several tax advantages.
Avoiding double taxation on income earned overseas
Foreign Tax Credit: The Foreign Tax Credit (FTC), available through FORM 1116, allows US tax payers living in Antigua and Barbuda to deduct income taxes paid to the Antigua and Barbuda government.
Capital Gains Tax exemption: Non-UK residents are exempt from paying tax on capital gains on most UK assets, except for residential property and specific business-related assets.
Foreign Earned Income Exclusion: The Foreign Earned Income Exclusion (FEIE), available through Form 2555, allows US citizens with Antigua and Barbuda tax residency to exclude income earned in the country from their US taxable income.
RRSPs and Pensions exemptions: Canadians making withdrawals from registered retirement accounts like RRSPs or RRIFs may reduce withholding tax rates under specific treaties.
Foreign Housing Exclusion: US tax payers who own a primary residence in Antigua and Barbuda can deduct housing-related expenses from their US tax bill by claiming the Foreign Housing Exclusion. This exclusion is only available to those who claim the FEIE through filing Form 2555.
Antigua and Barbuda Tax Treaties and Agreements
Antigua and Barbuda has 12 Double Taxation Treaties established with the following countries:
- Barbados
- Belize
- Dominica
- Jamaica
- Grenada
- Guyana
- Saint Kitts and Nevis
- Saint Lucia
- Saint Vincent and the Grenadines
- Sweden
- Switzerland
- Trinidad and Tobago
The government has Tax Information Exchange Agreements with Aruba, Australia, Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Liechtenstein, the Netherlands, Netherlands Antilles, Norway, Sweden, the United Kingdom, and the United States.
Compare Grenada vs St Kitts Citizenship in our detailed comparison Guide
Get in touch with a Caribbean Citizenship by Investment specialist
Frequently Asked Questions about Antigua Taxes
The benefit of tax residency in Antigua and Barbuda is that there is no local or global income taxation, and tax residents are not required to declare it on their Antigua tax returns.
Antigua and Barbuda is a Caribbean tax haven for individuals and tax residents do not pay personal income tax, or capital gains, wealth, or inheritance taxes.
VAT (Value Added Tax) in Antigua and Barbuda is a sales tax imposed by the Inland Revenue Department at a rate of 17.
ABST is the abbreviation for Antigua and Barbuda Sales Tax. This is a value-added tax paid by the consumer.
Some may or may not consider Antigua and Barbuda a tax haven due to the absence of income taxes for individuals, while companies are liable to pay income taxes. The nation has a progressive and moderate tax regime suitable for expats, including no income tax, capital gains, inheritance, or wealth taxes.
An individual or legal entity must pay tax in Antigua and Barbuda. The Antigua and Barbuda tax rate you pay for some taxes depends on whether you are a tax resident. For example, residents don’t pay personal income tax, while nonresidents are liable to pay the Antigua withholding tax rate of 25 percent.
The taxes individuals in Antigua and Barbuda pay include:
- Property taxes
- Stamp duty
- Sales tax
- Tourism levy
- Social Security contributions
The taxes legal entities in Antigua and Barbuda pay include:
- Property taxes
- Corporation tax
- Import tax
- Stamp duty
- Sales tax
- Social Security contributions
Specific sectors in Antigua and Barbuda benefit from unique tax benefits. Instead of the standard 17 percent sales tax, hotels have a 10.5 percent sales tax, and vacation accommodations have a 12.5 percent sales tax.
Antigua and Barbuda and the United States do not have a tax treaty.
Antigua and Barbuda departure tax has been included in all airline tickets since August 2022, so there is no extra fee to pay when you leave. A $5 departure tax per person applies for visitors departing by sea. Visitors who remain in the country for over 24 hours and leave on a pleasure vessel must pay an XCD $75 embarkation seaport tax.
The Antigua and Barbuda tourist tax ranges from $3 to $17.50 per person per day and is usually added to the cost of hotel accommodation when finalizing the booking.
While Controlled Foreign Company (CFC) rules are designed to prevent tax evasion by ensuring residents can’t artificially shift income to offshore entities, Antigua and Barbuda has no CFC regulations to adhere to, allowing residents who own foreign companies to maintain tax compliance.