Introduction

There is a growing interest in Antigua and Barbuda citizenship for good reason. Known as a tax haven, Antigua and Barbuda has an attractive tax system for foreign investors and businesses. Not only does Antigua and Barbuda not tax personal income, capital gains, or inheritance, but it also offers competitive rates for foreign corporations registered there. 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. 

In this article, we will cover:

• Different tax rates for citizens, residents, and foreigners
• The tax policy on real estate and property
• Tax laws that were written to attract foreign investment into the country

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Taxation System in Antigua and Barbuda

In April of 206, state officials of Antigua and Barbuda announced that they were abolishing personal income tax. This was done with the aim of attracting professionals and companies to relocate to the island, drawing in retirees, and bringing in foreign investment. 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. 

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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. 

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. 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. 

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. 

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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. 

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. 

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. 

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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

Expats from the United States of America can enjoy a $120,000 tax credit from income made in Antigua and Barbuda. To learn more about 

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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%.

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Conclusion

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. 

FAQ

Is Antigua and Barbuda a tax haven?

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. 

What is the VAT tax in Antigua?

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.

How do I become a citizen of Antigua?

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 $100,000 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. 

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