The St Kitts and Nevis Tax framework appeals to many foreign investors as it enables tax optimization and reduces excessive tax obligations. We’ll present everything you need to know in this guide about taxes in St Kitts and Nevis for US expats, including: Â
St Kitts and Nevis Tax Structure
Tax Authority: | The Inland Revenue Department is the government authority that enforces tax law in St Kitts and Nevis. |
Personal Income Tax: | St Kitts tax residents who maintain residence 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. |
Tax Forms: | Individuals do not file tax returns. Companies can file their tax return in person or through the e-filing system. |
Tax Year: | A company’s fiscal year-end determines its tax year. |
Tax Deadline: | -15 April is the tax deadline for self-employed St Kitts and Nevis Tax residents and registered companies -Unincorporated businesses pay taxes quarterly |
Currency: | St Kitts and Nevis 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: | St Kitts and Nevis has several tax agreements but does not have a double tax treaty with the United States. |
St Kitts and Nevis Personal Income Taxes
The St Kitts and Nevis government abolished personal income tax in 1980. In short, this means St Kitts and Nevis tax residents, including US citizens, pay no personal income taxes in the country. The move was made to improve the country’s business-friendliness and attract foreign investment.Â
Non-tax residents pay a fixed 15 percent withholding tax on dividends, interest, and royalties earned in the country. Â
Self-employment tax
Individuals living in St Kitts and Nevis who run businesses as sole proprietors or partnerships are classified as unincorporated businesses and are charged an Unincorporated Business Tax (UBT). The Saint Kitts and Nevis tax rate for UBT is 4 percent of gross revenue and is due quarterly.Â
Taxes in St Kitts and Nevis for Individuals​
- Withholding taxes: St Kitts and Nevis imposes a withholding tax.Â
- Social contributions: Both employees and employers must contribute to Social Security, which is 5 percent for employees and 6 percent for employers.Â
- Stamp duty: Both buyers and sellers of St Kitts and Nevis real estate must pay stamp duty on transfers, which ranges from 6 to 10 percent.Â
- Unincorporated Business Tax: Persons doing business in St Kitts and Nevis who are not registered under the Companies Act must pay unincorporated business tax. The rate is fixed at 4 percent of gross revenue.Â
Property Type | Tax Residents | St Kitts | Nevis |
Accommodation | Building | 0.2 percent | 0.3 percent |
Land | 0.2 percent | 0.2 percent | |
Agriculture | Building | 0 percent | 0 percent |
Land | 0 percent | 0.1 percent | |
Commercial | Building | 0.3 percent | 0.3 percent |
Land | 0.3 percent | 0.2 percent | |
Institutional | Building | 0 percent | 0.2 percent |
Land | 0 percent | 0.15 percent | |
Residential | Building | 0.2 percent | 0.156 percent |
Land | 0.2 percent | 0.75 percent |
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St Kitts and Nevis Corporate Tax
Domestic companies pay St Kitts income tax at a flat corporate tax rate of 25 percent, reduced from 33 percent as of 1 January 2024. The classification for a “resident company” is as follows:Â Â
- Incorporated or registered as an external business in St Kitts and Nevis Â
- Managed and regulated in St Kitts and Nevis  Â
- Trades in St Kitts and Nevis Â
- Receives earnings from St Kitts and Nevis Â
- Owns assets in St Kitts and Nevis that generate revenue for the company Â
In this case, a resident company pays tax on its global income. A non-resident company is taxed only on earnings derived or sourced from St Kitts and Nevis. This tax is a 15 percent withholding tax.Â
Foreign tax relief: Foreign tax credits are generally not applicable unless the opposing jurisdiction has a tax agreement with St Kitts and Nevis, or the taxes have been paid in a British Commonwealth country that provides similar relief for St Kitts and Nevis tax residents.Â
Social Security in St Kitts and Nevis
Public and private sector companies and their employees must contribute to Social Security on insurable earnings to receive social welfare benefits. The Social Security Tax rate is 11 percent for employees over 16 and under 65, split between the employee and employer at a rate of 5 percent of the employee’s gross wages.Â
An additional 1 percent is paid by the employer for employment injury coverage. There is no Social Security Tax for employees under 65 and over 65 besides the 1 percent employment injury coverage contribution.Â
Employment injury coverage charges cover most medical services within the St Kitts and Nevis healthcare system for residents.Â
Corporation tax ratesÂ
Tax Type | Resident Companies | Non-resident Companies |
Corporate Tax | 25 percent on worldwide income | 25 percent on income earned in St Kitts and Nevis |
Value-Added Tax | 0 to 15 percent, depending on the product | 0 to 15 percent, depending on the product |
Dividends | 0 percent | 15 percent |
Royalties | 0 percent | 15 percent |
Interests | 0 percent | 15 percent |
Social Contribution | 6 percent of employees gross income | 6 percent of employees gross income |
Tax advantages for Nevis-based legal entities
Not only does Nevis have some of the best banks in the Caribbean, but it is also a tax-neutral jurisdiction that allows Nevis-registered Limited Liability Companies (LLCs) to avoid capital gains and inheritance taxes on some or all the LLC’s assets. There is also the possibility to prevent taxation on non-Nevis-based assets.Â
St Kitts and Nevis Tax Benefits
- No personal income tax: St Kitts and Nevis Tax residents do not pay personal income tax on local or overseas income sources. Â
- Tax-free assets: Wealth, inheritance, and capital gains are not subject to taxation.Â
- Corporate tax breaks: Start-up businesses may qualify for corporate tax holidays for up to 15 years. Â
- Certain tax holidays: Qualified companies can utilize customs duties exemptions for specific goods. Â
- No Controlled Foreign Company regulations: St Kitts and Nevis Tax law does not enforce Controlled Foreign Corporation (CFC) regulations, allowing tax residents to own offshore companies without affecting the tax obligations of those entities. Â
Taxes in St Kitts and Nevis for US ExpatsÂ
The Inland Revenue Department (IRD) is the government authority tasked with enforcing tax laws according to the St Kitts and Nevis Inland Revenue Act (No. 18 of 2019). The Customs and Excise Department of the IRD collects duties and Caribbean taxes on imported goods. Customs duty is charged on imported goods in St Kitts and Nevis, but goods imported from other CARICOM (Caribbean Community) are duty-free. Â
By becoming a St Kitts and Nevis citizen through the citizenship program, foreign nationals can live or retire in St Kitts and Nevis and avoid double taxation if they choose to renounce their US citizenship.Â
The US Foreign tax credit for 2024 allows Americans permanently living in St Kitts and Nevis to exclude $120,000 from their taxable income for their tax return.Â
The St Kitts and Ne 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 St Kitts and Nevis citizenship do not pay taxes on worldwide income or assets held in foreign financial institutions. Â
Becoming a St Kitts and Nevis Tax ResidentÂ
International investors can obtain tax residency in St Kitts and Nevis, which is efficient for protecting their income and assets while maintaining visibility for tax purposes.Â
St Kitts and Nevis tax residency requirements:Â Â
- Obtain legal residencyÂ
- Spending a minimum of 183 days in the country annually Â
- Obtaining a certificate of residency and St Kitts and Nevis Taxpayer Identification Number (TIN)Â Â
There is no St Kitts tax residency program allowing foreigners to establish tax residency without residing in the country for more than 183 days.Â
St Kitts and Nevis citizenship Â
US investors can apply for the St Kitts and Nevis citizenship by investment program to become a St Kitts and Nevis tax resident. The program allows foreign nationals to make one of several investments, including a non-refundable contribution to the government fund, an approved real estate investment, or a contribution to public benefit projects.Â
Successful applicants receive a St Kitts and Nevis passport and the right to reside in St Kitts and Nevis passport permanently.Â
Take a look at our St Kitts and Nevis Citizenship by Investment Ultimate Guide
Other Taxes in St Kitts and Nevis to Consider
Landholding license: Non-resident foreigners must apply for an Alien Landholding License (ALHL) to legally buy Caribbean real estate in St Kitts and Nevis, which is 10 percent of the property value. Investors participating in the St Kitts and Nevis citizenship by investment program are not required to obtain an ALHL to make a real estate purchase.Â
Stamp duty: Based on the property’s value, stamp duty for selling real estate in St Kitts and Nevis is 6 to 10 percent. Properties transferred in any special Development Area or the Southeast Peninsular are charged a 12 percent transfer tax.Â
Sales tax: The sales tax in St Kitts and Nevis is 17 percent. Businesses operating in the tourism sector pay a reduced rate of 10 percent. Â
The St Kitts and Nevis tax system does not charge capital gains, wealth, gift, or inheritance tax.Â
Property taxes in St Kitts and NevisÂ
Paying taxes is required for property owners in St Kitts and Nevis. The St Kitts and Nevis property tax rate depends on the property’s location and use. Agricultural and Institutional properties are excluded from St Kitts taxes, provided they’re certified by the Director of Agriculture or provide qualifying educational services under the Education Act.Â
St Kitts and Nevis property tax rates
Property Type | Tax Residents | St Kitts | Nevis |
Accommodation | Building | 0.2 percent | 0.3 percent |
Land | 0.2 percent | 0.2 percent | |
Agriculture | Building | 0 percent | 0 percent |
Land | 0 percent | 0.1 percent | |
Commercial | Building | 0.3 percent | 0.3 percent |
Land | 0.3 percent | 0.2 percent | |
Institutional | Building | 0 percent | 0.2 percent |
Land | 0 percent | 0.15 percent | |
Residential | Building | 0.2 percent | 0.156 percent |
Land | 0.2 percent | 0.75 percent |
How to Reduce Taxes as a Foreigner in St Kitts and Nevis
Foreign nationals can utilize tax credits and deductions to reduce their tax liability. One of the most effective ways to avoid taxes legally for US citizens is to reduce the gross income subject to taxation by filing Form 1116 for the foreign tax credit with Form 1040 when submitting a tax return to the IRS. Â
Other methods include increasing retirement contributions to IRAs, 401ks, SIPPs, RRSPs, and Social Security accounts. Selling an investment that has lost value or donating to a national fund like St Kitts and Nevis Sustainable Island State Contribution can reduce your annual tax bill by itemizing your deductions. Â
St Kitts and Nevis tax residents enjoy zero taxation on capital gains tax, estate taxes, or personal income.Â
Tax deductions for foreign investors in St Kitts and NevisÂ
Foreign Tax Credit: The Foreign Tax Credit (FTC), available through FORM 1116, allows US citizens living in St Kitts and Nevis to deduct Saint Kitts and Nevis income tax they’ve paid. Â
Capital Gains Tax exemption: Non-UK residents are tax-exempt 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 St Kitts and Nevis tax residency to exclude income earned in the country from their US taxable income. Â
RRSPs and Pensions exemptions: Canadians withdrawing from registered retirement accounts like RRSPs or RRIFs may reduce withholding tax rates under specific treaties.
Foreign Housing Exclusion: US citizens who own a primary residence in St Kitts and Nevis can deduct housing-related expenses from their US tax bill, including building tax, maintenance fees, and mortgage interest paid to banks in St Kitts and Nevis. This exclusion is only available to those who claim the FEIE through filing Form 2555.
St Kitts and Nevis Double Tax Treaties and Agreements
St Kitt and Nevis has 14 Double Taxation Treaties established with the following countries:Â Â
- Antigua and BarbudaÂ
- Barbados Â
- Belize Â
- DenmarkÂ
- Dominica Â
- Grenada Â
- Guyana Â
- JamaicaÂ
- MonacoÂ
- Saint Lucia Â
- Saint Vincent and the Grenadines Â
- Sweden Â
- Switzerland Â
- Trinidad and Tobago Â
Exchange of tax information between St Kitts and Nevis and other countries
The government has Tax Information Exchange Agreements with Aruba, Australia, Belgium, Finland, France, Germany, Iceland, Ireland, Liechtenstein, the Netherlands, Netherlands Antilles, Norway, the United Kingdom, and the United States. Â
Additionally, the St Kitts and Nevis government signed the Organization of Economic Cooperation and Development (OECD) Convention on Mutual Assistance in Tax Matters, which facilitates the automated exchange of financial account information according to the OECD’s Common Reporting Standard (CRS). Â
Get in touch with a Caribbean Citizenship by Investment specialist​
Frequently Asked Questions about Saint Kitts and Nevis Taxes
The benefit of tax residency in St Kitts and Nevis is that there is no individual income tax, and both a tax resident and non-tax resident are not required to submit a St Kitts and Nevis personal income tax return. Â
St Kitts and Nevis is a Caribbean tax haven for individuals tax residents as the personal income tax rate is zero. Capital gains, wealth, and inheritance are also tax-exempt. However, companies must pay a St Kitts and Nevis corporate tax rate 25 percent.Â
VAT (Value Added Tax) in St Kitts and Nevis is a sales tax imposed by the Inland Revenue Department at a rate of 17. Products related to tourism have a lower rate of 10 percent. Â
Some may or may not consider St Kitts and Nevis a tax haven due to there being no requirement to pay income tax. However, non-residents pay withholding taxes, and businesses must pay corporate taxes. Nevertheless, the country has a progressive and moderate tax system suitable for expats, which does not impose personal income tax, capital gains, inheritance, or gift tax.
The income tax rate in St Kitts and Nevis is set to zero for personal income as the country does not impose income taxes on individuals. The corporate income tax rate is in St Kitts and Nevis is 25 percent.
Certain sectors in St Kitts and Nevis benefit from unique tax benefits. Instead of the standard 17 percent sales tax, St Kitts tax rates for businesses in the tourism sector is 10 percent on sales. New legal entities may be eligible to avoid or pay taxes at reduced rates for up to 15 years.Â
St Kitts and Nevis and the United States do not have a tax treaty. Â
While Controlled Foreign Company (CFC) rules are designed to prevent tax evasion by ensuring tax residents can’t artificially shift income to offshore entities, St Kitts and Nevis has no CFC regulations to adhere to, allowing residents who own foreign companies to maintain tax compliance. Â
The primary tax St Kitts and Nevis tax advantages include no personal income tax for individuals. Additionally, there is no capital gains, wealth, or inheritance tax.
Individuals do not pay income taxes in St Kitts and Nevis.Â
