There is a growing interest in Antigua and Barbuda citizenship for good reason. Antigua and Barbuda is more than just a tropical paradise; it’s a financial haven with a tax system designed to attract global investors. Known for its zero personal income tax and no capital gains tax, this island nation offers a unique opportunity for individuals and businesses alike.
What’s more, Antigua and Barbuda isn’t just a tax haven for the wealthy; it’s a growing destination for entrepreneurs, digital nomads, and retirees seeking simplicity and serenity. With policies designed to attract innovation and international business, the islands are positioning themselves as the Caribbean’s financial powerhouse. Imagine living where your biggest worry is what beach to visit next! While registering in the twin island country is quite complex, our experts at Mirabello Consultancy can provide all the insights you need to move forward with your decision.
If you’re exploring Antigua and Barbuda taxes, this guide will break it down for you from the tax residency process to property taxes and corporate incentives.
- Antigua and Barbuda taxes are tailored to attract foreign investors, offering significant advantages.
- No personal income tax, capital gains tax, or inheritance tax for residents.
- Competitive property tax rates and clear guidelines for buyers and sellers.
- Corporate tax rates as low as 10% for specific industries.
- Double taxation treaties with countries like the UK, Switzerland, and UAE.
- Becoming a tax resident requires living in Antigua for at least 183 days per year.
- Antigua is among the top five Caribbean destinations for low taxes, alongside Bermuda and the Cayman Islands.
- The elimination of income tax in 2016 saved residents an estimated $10 million annually.
- Non-residents can benefit from Antigua and Barbuda taxes by investing in real estate or starting a business, all while enjoying a tax-free global income.
Taxation System in Antigua and Barbuda
In 2016, Antigua and Barbuda eliminated personal income tax, making it a standout choice for investors seeking tax-efficient solutions. As part of its appeal, the government introduced a tax-friendly system that complements its citizenship by investment programs, ensuring the island remains a prime destination for global expats. The elimination of personal income tax in 2016 was more than a financial move—it was a game-changer for attracting global investors and professionals. Antigua and Barbuda’s fiscal policies also focus on preserving investor confidentiality, a feature often associated with premier financial jurisdictions.
In Antigua and Barbuda taxes are kept at a minimum to draw in investment so you can rest assured that the country would not raise them as it provides a staple of their economy outside of tourism and fishing.Also, Antigua’s taxation system isn’t just about attracting investment; it’s about creating a sustainable economy. By keeping taxes low, the government encourages foreign businesses to bring expertise and create jobs locally. This “tax-light” approach fosters growth in sectors like hospitality, technology, and renewable energy.
Tax Residency in Antigua and Barbuda
It is a common misconception that becoming a citizen of Antigua and Barbuda will also make you a tax resident. In order to become a tax resident, one has to live on the island for at least 183 days, have a registered address, and take part in economic activities to qualify.
If you are interested in becoming a citizen of Antigua and Barbuda through investment, speak with a qualified expert or read more about all the benefits of citizenship.
Lifestyle benefits
Tax residency in Antigua isn’t just a financial move, it’s a lifestyle upgrade. Residents enjoy world-class marinas, vibrant cultural festivals, and luxury amenities while paying minimal taxes. The 183-day requirement is easy to meet when the average annual temperature is a perfect 27°C (81°F), isn’t it?
Types of Taxes Applicable to Foreign Investors
While Antigua and Barbuda taxes are minimal, there are a few applicable levies foreign investors should be aware of:
- Withholding Tax: Non-residents are subject to a 25% withholding tax on dividends, royalties, and interest.
- Sales Tax (ABST): A flat rate of 17% applies to most goods and services.
- Real Estate Transaction Taxes: Includes stamp duties, appreciation tax for non-resident sellers, and licensing fees.
- Corporate Tax: The corporate tax rate is 25%, though some sectors enjoy reduced rates.
Taxation of Income for Foreign Investors
Antigua and Barbuda’s Tax Reform of 2016 eliminated taxes on income, capital gains, and inheritance for its residents. Antigua and Barbuda makes sure that all of your finances are kept private. None of your financial information is disclosed to outside organizations or countries. While residents of Antigua and Barbuda are not taxed, nonresidents have to pay 25% of their income earnings and are subject to tax on other earnings like royalties. There is an additional 25% tax on any income generated in the country itself. Antigua and Barbuda taxes are much lower when you are both a citizen of the country and registered as a tax-paying resident.
However, individuals who establish tax residency enjoy the benefit of zero personal income tax. This is particularly appealing for global professionals and entrepreneurs looking to legally minimize their tax obligations while enjoying a luxurious island lifestyle. Taxes here are like hurricanes, rare and over quickly!
Property Taxes
In Antigua and Barbuda, property taxes are based on the market value of said property during the time of purchase. There are a few taxes to pay both from the seller’s and buyer’s end. The buyer is responsible for a stamp duty that is 2.5%, an insurance fee of 0.2%, and a licensing fee of 5% if the buyer is a non-resident. The seller is responsible for paying a 7.5% stamp fee but will not be taxed again on the income made from the sale. Non-resident sellers are also responsible for an additional 5% appreciation tax when selling their property.
The property tax system in Antigua and Barbuda is designed to be straightforward. Buyers are responsible for fees such as stamp duty and insurance, while sellers may incur an appreciation tax. However, it’s worth noting that these rates remain competitive compared to global real estate hotspots, further enhancing Antigua’s appeal for property investors.
If you want a full rundown on what to expect when acquiring property, get in touch with one of our specialized agents at Mirabello Consultancy for a free no-obligation call.
Schedule your free consultation today and secure your future!
Benefits for Corporations
While individuals can enjoy paying little to no taxes on their different sources of income, corporations have one flat tax. Corporations in Antigua and Barbuda pay a flat 25% tax on all income made. Banks can pay a lower tax if they can maintain a low mortgage rate decided by the government. Certain infrastructure companies can be taxed as low as 10% for providing services to the island nation.
Double Taxation Treaties
Antigua and Barbuda does have a double taxation treaty with the following countries:
- Barbados
- Belize
- Dominica
- Grenada
- Guyana
- Jamaica
- Saint Kitts and Nevis
- Saint Lucia
- Saint Vincent and the Grenadines
- Trinidad and Tobago
- Switzerland
- United Arab Emirates
- United Kingdom
Antigua and Barbuda has cultivated relationships with multiple countries to ensure investors are not taxed twice on the same income. For example, US citizens working or earning in Antigua can benefit from the $120,000 foreign income tax credit, easing financial burdens. Additionally, agreements with CARICOM nations foster regional collaboration, making it easier for businesses to operate across borders.
Antigua and Barbuda stands out even among premier tax havens like Monaco and the Cayman Islands. While many jurisdictions offer zero-income-tax policies, Antigua adds accessibility through affordable investment programs and its strategic location in the Americas. It’s not just a tax haven; it’s an accessible haven.
Tax Incentives and Exemptions for Foreign Investors
To make the country even more attractive to global investors, Antigua and Barbuda offers several tax incentives:
- Reduced corporate tax rates for businesses that contribute to infrastructure or tourism.
- Confidentiality laws that protect financial and personal data.
- No estate or inheritance taxes, providing peace of mind for legacy planning.
Incentives for Entrepreneurs and Startup
Antigua’s government offers incentives for startups, including tax holidays, reduced licensing fees, and grants for tourism-related businesses. Entrepreneurs establishing operations in the free zones enjoy duty-free imports, expedited customs clearance, and zero withholding taxes on dividends.
Lifestyle Meets Tax Efficiency
Taxes aside, Antigua and Barbuda offers a lifestyle few can resist. Residents can enjoy yachting in turquoise waters, sampling Caribbean cuisine, and participating in globally celebrated events like Antigua Sailing Week. The low-tax environment complements a cultural and natural experience, making the islands a true paradise for investors and their families. In Antigua, you’ll pay more for a yacht than for taxes and and we think that’s a fair deal.
Hidden Benefits of Antigua’s Tax System or Why Investors Choose Antigua.
Let’s explore benefits beyond the obvious:
Confidentiality: Antigua’s strict privacy laws protect your financial information, shielding it from global scrutiny.
Global Banking: Residents gain access to world-class offshore banking services, enabling seamless international transactions.
Ease of Doing Business: Simplified regulations make registering a business a straightforward process, with minimal red tape.
Withholding Taxes in Antigua and Barbuda
Non-resident companies operating in Antigua and Barbuda are subject to a withholding tax rate of 25% on income sources, including dividends, interest, royalties, and other payments made. Resident companies are fortunately exempt from withholding tax. As of December 31, 2018, tax exemptions for International Business Companies (IBCs) were rescinded, meaning there are no longer withholding tax exemptions on payments made by offshore IBC companies to non-residents. Loans provided by non-residents at arm's length for specific purposes may be taxed at a reduced rate of 10% with prior approval.
Dividends and interest payments paid to resident entities of CARICOM member states are exempt from withholding tax, except for dividends paid on preferred shares, which are taxed at 15%.
While Antigua and Barbuda taxes are structured to attract foreign investment, they are still far from simple. Anyone who seeks to do business or reside in Antigua or Barbuda would benefit greatly from acquiring citizenship to pay less taxes on income, property, and selling assets. While this article covers the basics of Antigua and Barbuda tax policy, a one-on-one conversation with an expert will give you a deeper understanding of what to expect when conducting business. Book a free no-obligation call with an expert today.
In a world where financial stability and freedom are increasingly valuable, Antigua and Barbuda offers a unique blend of lifestyle and economic benefits. Whether you’re a business owner, a retiree, or a global investor, the island’s tax system makes it a standout choice. Don’t just take our word for it—schedule a consultation with our experts at Mirabello Consultancy and explore how Antigua’s tax advantages can work for you.
FAQ
Antigua and Barbuda taxes are notoriously low to nonexistent for tax-paying residents. For the price of citizenship by investment, Antigua and Barbuda is definitely a tax haven considering how much more affordable it is to register a business there than in more well known tax havens.
The Antigua and Barbuda Sales Tax (ABST) is a flat 17% sales tax on most goods and services while important sectors like agriculture and tourism are a bit more lax. While this is not technically a VAT tax, you can expect to pay taxes on goods and services in Antigua and Barbuda.
There are a few avenues to acquiring citizenship in Antigua and Barbuda through investment. The more affordable and straightforward method is to acquire citizenship by making a direct investment in the Antigua and Barbuda Development Fund. With a $230,000 investment and application fees, you can be just months away from becoming a citizen with full benefits. Those who wish to make a more tangible investment into real estate can purchase a prequalified house for over $400,000 to qualify for citizenship. The purchased property can be used to generate profit but can not be sold within the first five years if one wants to still keep their citizenship.
To become a tax resident, you must live in Antigua for at least 183 days per year and participate in the local economy.
Residents enjoy no income tax, while non-residents face a 25% tax on locally sourced income. For more details, you can visit our website and consult with one of our specialists.
Property taxes range from 0.1% to 0.5% of the property’s market value annually. Additional fees, like stamp duty, apply to non-residents during transactions.
With no personal income tax, no inheritance tax, and a competitive corporate tax rate, Antigua is one of the most attractive jurisdictions globally for tax optimization
No. Antigua only taxes income earned within its borders, making it highly appealing to individuals with international businesses or earnings.
The standard corporate tax rate is 25%, but select industries benefit from reductions as low as 10%.
Yes! Antigua’s low-tax environment is ideal for remote workers earning global income. Plus, the laid-back lifestyle and modern infrastructure make it a top choice for digital nomads.
Absolutely. Retirees can live tax-free on global income while enjoying high-quality healthcare and affordable living costs.
