St Lucia Taxes Guide for Foreign Investors and Companies

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Contents

St Lucia taxes appeal to many foreign investors as it enables tax optimization to reduce excessive tax obligations. This guide provides comprehensive information about taxes in St Lucia for foreign investors and businesses, including:  

 

St Lucia Tax Structure

Tax Authority: 

The Inland Revenue Department is the government authority that enforces St Lucia tax law. 

Personal Income Tax: 

St Lucia tax residents must pay personal income tax on foreign income sources. 

Corporate Income Tax: 

Companies registered in St Lucia pay a flat 30 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: 

31 March is the tax deadline for self-employed St Lucia tax residents and registered companies 

Currency: 

St Lucia 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 Lucia has several tax agreements but does not have a double tax treaty with the United States. 

St Lucia Taxes for Individuals

  • Withholding taxes: St Lucia imposes a withholding tax.  
  • Social contributions: Both employees and employers must contribute to the National Insurance Corporation (NIC). 
  • Stamp duty: Both buyers and sellers of St Lucia real estate must pay stamp duty. 
  • Property transfer tax: Property buyers pay transfer tax in St Lucia. 
  • Income tax: Income tax in St Lucia applies to both local and foreign income. 

Personal income taxes 

St Lucia personal income tax is imposed on: 

  • Business income 
  • Interest 
  • Labor activity 
  • Rent 
  • Royalty

The personal income tax rate is progressive, ranging from 0 to 30 percent. Both tax residents and non-residents are not taxed on such income earned up to EC $18,400. 

Income amount 

Income tax rate 

Up to $18,400 

0 percent 

$18,401 to $28,400 

10 percent 

$28,401 to $38,400 

15 percent 

$38,401 to $48,400 

20 percent 

$48,401 and above 

30 percent 

St Lucia income tax rates apply to both an employee and an individual living in St Lucia who supplies independent personal services. Non-residents pay taxes on income earned in St Lucia. 

Foreign tax relief: Foreign tax credits are generally not applicable unless the opposing jurisdiction has a tax agreement with St Lucia, or the taxes have been paid in a British Commonwealth country that provides similar relief for St Lucia tax residents.  

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St Lucia Taxes for Legal Entities

Domestic companies pay St Lucia income tax at a flat corporate tax rate of 30 percent. “Domestic companies” refers to the following entities. 

  • Incorporated or registered as an external business in St Lucia. 
  • Managed and regulated in St Lucia    
  • Trades in St Lucia  
  • Receives earnings from St Lucia   
  • Owns assets in St Lucia that generate revenue for the company   

In this case, a domestic company pays tax on its global income. For non-domestic companies, a corporate withholding tax of 25 percent is imposed on chargeable income derived from sources in St Lucia. Non-resident companies also pay a 15 percent withholding tax on interest. 

Social Security contributions in St Lucia 

National Insurance Corporation (NIC) is citizen security levy in St Lucia, which is paid by public and private sector businesses and their employees on insurable earnings to receive social welfare benefits. NIC tax rate is 10 percent, with employees contributing five percent of the tax on their gross wages and employers matching the employee’s contribution. 

NIC coverage covers most medical services within the St Lucia healthcare system for residents.  

Corporation tax rates 

Tax Type

Resident Companies

Non-resident Companies

Corporate Tax

30 percent on worldwide income 

25 percent on income earned in St Lucia 

Dividends

0 percent 

15 percent 

Royalties

0 percent 

15 percent 

Interests

0 percent 

15 percent 

Social Contribution

5 percent 

5 percent 

St Lucia Tax Benefits

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  • No worldwide income tax: St Lucia residents do not pay personal income tax on foreign sources.   
  • Tax-free assets: Wealth, inheritance, and capital gains are not subject to taxation.  
  • Corporate tax breaks: Start-up businesses may qualify for corporate tax holidays for up to 15 years.   
  • Reduced sales tax: Businesses offering hotel accommodation services are charged a ten percent reduced value-added tax. 
  • No Controlled Foreign Company regulations: St Lucia 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.   

How to Become a Tax Resident of St Lucia

International investors can obtain tax residency in St Lucia, which is an efficient strategy to protect their income and assets while maintaining visibility for tax purposes.  

St Lucia tax residency requirements:   

  • Obtain legal residency  
  • Spending a minimum of 183 days in the country annually   
  • Obtaining a certificate of residency and St Lucia Taxpayer Identification Number (TIN)   

St Lucia has no tax residency program allowing foreigners to establish tax residency without residing in the country for at least 183 days.  

St Lucia citizenship   

Foreign investors can apply for the St Lucia citizenship by investment program to become a St Lucia tax resident. The program allows foreign investors to choose one of several investment routes, including a non-refundable contribution to the government fund, an approved real estate investment, business investment, or government bonds acquisition. The program’s minimum investment is $240,000. 

Successful applicants receive a St Lucia passport and the right to reside in St Lucia permanently.  

Take a look at our St Lucia Citizenship by Investment Ultimate Guide

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Filing Tax Returns in St Lucia

Anyone liable to pay taxes in St Lucia must first register with the Inland Revenue Department (IRD) and obtain a Taxpayer Identification Number (TIN). 

Individuals 

Employed individuals pay taxes on their monthly salary through the St Lucia Pay-As-You-Earn system (PAYE). The PAYE system withholds monthly income taxes from an employee’s salary, and employees must also submit a tax return to the IRD. 

PAYE taxes are submitted with Form P30, a monthly remittance form, and the annual tax return form is TD 6. 

Self-employed individuals

Self-employed individuals in St Lucia must file form TD 6 by 31 March each year to report their income for the previous calendar year, ensuring they declare all earnings, claim allowable deductions, and calculate any Caribbean taxes owed in compliance with the Inland Revenue Department’s requirements. 

Legal entities 

Corporate income tax returns must be filed by legal entities by the end of the fourth month after the end of their fiscal year. The return must contain Value-Added Tax (VAT) reports filed monthly or quarterly, depending on the company’s structure. 

PAYE and withholding taxes for employees are submitted by employers monthly. A TD 4 form is a contract tax form which must be submitted for temporary workers or contractors. 

The official website for the St Lucia Inland Revenue Department, irdstlucia.gov.lc, provides relevant tax forms and an e-filing portal. 

Other Taxes in St Lucia to Consider

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Landholding license: Non-resident foreign nationals must apply for an Alien Landholding License (ALHL) to legally buy Caribbean real estate in St Lucia, which is ten percent of the property value. Investors participating in the St Lucia citizenship by investment program are not required to obtain an ALHL to make a real estate purchase.  

Stamp duty: Based on the property’s value, stamp duty for selling real estate in St Lucia is 2.5 to 5 percent. 

Sales tax: The sales tax in St Lucia is 12.5 percent. Businesses operating in the tourism sector pay a reduced 10 percent rate.   

Import tax: Customs duty ranges from 0 to 20 percent. all taxable imports are assigned a tax code. 

Excise tax: Excise taxes apply to specific products, such as alcohol, tobacco, and petroleum. 

Property taxes in St Lucia

Paying property taxes is required for owners of residential and commercial property in St Lucia. The St Lucia annual property tax rate depends on the property’s location and use. The residential property tax rate is 0.25, and the commercial property tax rate is 0.4 percent.

How to Reduce Taxes as a Foreigner in St Lucia

Foreigners can utilize tax credits and deductions to reduce their tax liability in St Lucia. One of the most effective ways to avoid taxes legally for US citizens is by reducing gross income subject to taxation by filing Form 1116 for the foreign tax credit with FORM 1040 when submitting an annual income tax return to the IRS.   

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 state fund like the St Lucia National Economic Fund (NEF) can reduce your annual tax bill by itemizing your deductions.   

Tax deductions for foreign investors in St Lucia  

Foreign Tax Credit: The Foreign Tax Credit (FTC), available through FORM 1116, allows American citizens living in St Lucia to deduct the main taxes paid on income to the St Lucia government.   

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 Lucia tax residency to exclude income earned in the country from their US taxable income.   

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: American citizens who own a primary residence in Saint Lucia can deduct housing-related expenses from their US tax bill, including building tax, maintenance fees, and mortgage interest paid to banks in St Lucia. This exclusion is only available to those who claim the FEIE through filing FORM 2555. 

St Lucia Double Tax Treaties and Agreements

st lucia attractive tax benefits

As part of the Caribbean trade and economic union agreement, St Lucia has Double Taxation Agreements with Caribbean Community (CARICOM) member states, including:   

  • Antigua and Barbuda  
  • Barbados   
  • Belize   
  • Dominica   
  • Grenada   
  • Guyana   
  • Jamaica  
  • Monaco  
  • Saint Kitts and Nevis 
  • Saint Vincent and the Grenadines    
  • Trinidad and Tobago   

Exchange of tax information between St Lucia and other countries 

The Government of Saint Lucia has Tax Information Exchange Agreements established through the OECD’s Common Reporting Standard (CRS) with EU countries, Australia, Canada, New Zealand, Singapore, Switzerland, and the United Kingdom. 

Saint Lucia also complies with the Foreign Account Tax Compliance Act (FATCA) to report financial accounts of American citizens paying income taxes in the country. 

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Frequently Asked Questions about Saint Lucia Taxes

The benefit of St Lucia tax residency is that there is no individual income tax on worldwide income, lowering the overall cost of living in St Lucia.

St Lucia is not a tax haven for individual or corporate tax residents, with both required to pay income taxes. 

Value-Added Tax (VAT) in Saint Lucia is a sales tax imposed by the IRD at a rate of 12.5. Tourism products and related services have a lower rate of 10 percent.   

Saint Lucia is not a Caribbean tax haven as individuals, whether employed or self-employed, as well as corporations, are required to pay income taxes. 

The income tax rate in St Lucia is 0 to 30 percent for individuals and a flat 30 percent tax rate for legal entities. 

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