Discover the Antigua tax haven in the Eastern Caribbean Sea to enjoy a tropical island paradise in addition to the benefit of no income tax. Indeed, the Antigua and Barbuda tax laws have eliminated all income tax. As a result, Antigua tax residency will allow new citizens to live their lives tax free!
Proper tax planning is essential. Use Antigua and Barbuda citizenship by investment to establish your nexus to this Caribbean tax haven. As a result, it is possible to reside in the country of your choice while enjoying no income tax.
How is this possible? Tax residency is easily misunderstood, but it can be your friend when it is combined with the proper tax planning. Continue reading to learn everything you need to know→
Introduction to Antigua and Barbuda Tax Residency
Antigua and Barbuda is a tropical island paradise famous for gold, white and also pink colored sandy beaches. Additionally, it is a Caribbean tax haven attracting high net worth individuals seeking to eliminate their worldwide income tax. Not to mention, Antigua tax residency offers significant tax advantages to individuals, families and also corporations.
So tax residency benefits of Antigua and Barbuda allow you to eliminate all personal income tax. But there is also no capital gains tax, inheritance tax or wealth tax. In addition, you can choose from a selection of 365 local beaches, one for each day of the year. Also, enjoy swimming in the crystal clear turquoise waters, plus snorkeling and scuba diving in the Eastern Caribbean Sea.
This is why you should join the expatriates flocking to the Antigua tax haven. The lifestyle benefits and advantages of Antigua tax residency are indeed very enticing. In further benefit, qualified persons can choose from two methods to obtain the tax free Caribbean lifestyle.
Table of Contents
- How to Obtain Antigua Tax Residency
- Benefits of the Antigua Citizenship Program
- No Personal Income Tax
- Corporate Income Tax Rates
- International Business Corporation Act
- Sales Tax, Revenue Recovery Charge and Customs Tax
- Real Property Taxes and Stamp Duties
- Is Physical Presence Required for Antigua Tax Residency?
- Build a Strong Nexus for Effective Antigua Tax Residency
How to Obtain Antigua Tax Residency
One option is the long standing residency program established since 1995 by the government of Antigua and Barbuda. As a result, financially well off foreign individuals with a bank reference, clean criminal background and clean bill of health can claim Antigua tax residency. The requirements are:
- Your annual income must exceed US$100,000.
- Reside in Antigua and Barbuda for a minimum of 30 days per year.
- You must lease or purchase property in the country.
- Pay a flat rate of US$20,000 per year in Antigua sales tax.
The second option is the Antigua and Barbuda CIP. Established since 2013, the CIP allows qualified applicants to obtain citizenship in exchange for an investment into the local economy.
Investors must pass a stringent background check plus health examination. Then submit the completed application forms with supporting documents. Furthermore, the CIP offers four qualified investment options.
- Single applicants qualify with a nonrefundable minimum contribution to the National Development Fund in the amount of US$100,000 or US$125,000 for family of five.
- Qualify by purchasing government approved real estate valued at a minimum price of of $200,000 (Five year holding period applies).
- Large families with six or more members can apply under the University of West Indies Fund option with a US$150,000 minimum contribution. *One family member receives one year free tuition!
- Entrepreneurs can invest a minimum of US$1,500,000 if sole investor but it is reduced to US$400,000 each for multiple investors.
Benefits of the Antigua Citizenship Program
Single applicants and large families benefit the most from the Antigua CIP because it is their most economical path to second citizenship worldwide.
Furthermore, Antigua CIP eliminates the restrictive requirements of the residency program. This includes the 30 day annual physical presence requirement, the requirement to purchase or lease residential property, the US$20,000 flat sales tax and also the minimum income requirements.
Additional benefits of the citizenship program include:
- As a citizen of Antigua and Barbuda you are a citizen of the British Commonwealth.
- Qualify immediately for Antigua tax residency benefits.
- Antigua and Barbuda is an active member state of both the OECS and CARICOM. Therefore, Antigua citizens enjoy the right to live and work in any participating Caribbean country.
- Visa free or visa on arrival access to over 151+ countries including the EU, UK, Ireland, UAE and South Africa.
- No personal interview or need to visit the island during the application process.
- Minimal residency requirement of only five days during the first five years of citizenship.
- Dual citizenship is allowed with no requirement to renounce your current citizenship.
Would you like to qualify for Antigua and Barbuda citizenship? Contact me today and begin your journey to global access, low tax and financial freedom.
Read more below to assess your personal tax circumstances. Find out what local taxes would be applicable to you as a resident citizen of Antigua and Barbuda. In addition, discover the tax free business option available for entrepreneurs.
No Personal Income Tax
The administration of Prime Minister Gaston Browne eliminated all personal income tax in 2016 and replaced it with the Unincorporated Business Tax. Therefore, personal income tax has been effectively “abolished” in Antigua and Barbuda.
To reiterate, there is no personal income tax including no capital gains tax, no inheritance tax nor wealth tax. Additionally, both residents and nonresidents are equally exempt
However, there is a slight risk in assuming that the tax exemption is permanent. This is because it was a political promise to eliminate the preexisting personal income tax of 8% on income above $3500 and 15% on income above $25,000 which had been in place since 2004.
Nonetheless, prior to 2004 there was no personal income tax in the country since their independence in 1981. Theoretically, personal income tax could be reimposed by a new administration. However, it would be an uphill battle to accomplish this.
Corporate Income Tax
There is a flat corporate income tax rate of 25%. In addition, a reduced corporate income tax rate of 10% was introduced in March 2019 for registered commercial banks, insurance companies, petroleum companies plus telecommunications companies.
Companies resident in Antigua and Barbuda are taxed on worldwide income while nonresident companies only pay tax on locally sourced income. To be considered resident the company must be
- incorporated in Antigua and Barbuda or
- is an external company registered in the country or
- is centrally managed and controlled in Antigua and Barbuda.
|Corporate Income Tax Rate||25%|
|Branch Income Tax Rate||25%|
|Banks, Insurance companies, Petroleum and Telecommunications Companies||10%|
|Capital Gains Tax||No Capital Gains Tax|
International Business Corporation Act
The International Business Corporation Act of 1982 (IBC Act) permits the formation of a tax free business entity. As a result, persons located outside of Antigua and Barbuda can conduct business in a tax free environment.
Acceptable business classifications include trust business, international banking, insurance, trade and also manufacturing. Businesses formed under the IBC Act are exempt from corporate income tax, sales tax and also withholding tax.
Sales Tax, Revenue Recovery Charge and Customs Tax
The Antigua and Barbuda sales tax (known as ABST) is 15%. Therefore, most goods and services are taxed at that rate with the exception of a 12.5% rate given to hotel accommodations. In addition, exempt items include:
- Sale of new residential property
- Electricity for residential use
- Construction of residential premises
Furthermore, customs duty is charged against most imported goods specified under the Custom Duties Act. As a result, nonexempt imported goods are levied with a 0% to 70% customs tax rate. The rate is calculated based on the CARICOM Common External Tariff.
In addition, there is the Revenue Recovery Charge imposed at 13% on the value of imported goods and also goods produced within the country. However, non government entities with government agreements are exempt. Also, certain government entities and most fuel imports are exempt.
Real Property Taxes and Stamp Duties
Property taxes are imposed against the value of the property that is set by the Antigua government’s Property Valuation Department subject to certain exemptions and rebates.
|Buildings classified as other property||0.50%|
|Land Classified as other property||0.40%|
However, rebates and allowances can be applied under the following four situations:
- Pay early and receive 5% rebate on tax due.
- Property used as primary dwelling receives homestead exemption of $150,000.
- Two years exemption after new dwelling house first becomes habitable.
- Special development property can receive rebates from 25% to 100%.
The transfer of real property draws a stamp duty against the value of the property. Valuations are set according to the amount of the consideration or alternatively the value set by the Chief Valuation Officer, whichever is higher.
Additionally, non citizen sellers are taxed at the amount equal to 5% of the property’s appreciation value. Also, non citizen buyers must purchase an alien landholding license for a cost equal to 5% of the property value.
|Transfer Tax (buyers)||2.5%|
|Transfer Tax (sellers)||7.5%|
|Appreciation Tax (non citizen sellers)||5%|
|Alien Landholding License (non citizen buyers)||5%|
Is Physical Presence Required for Antigua Tax Residency?
Successful applicants of the Antigua citizenship program will immediately qualify for tax residency. As a result, eliminate your personal income tax and reside in a Caribbean paradise. However, it is a misnomer to believe that you must be physically present in order to qualify for “tax residency”. Indeed, effective tax residency is also available to nonresident citizens.
Nonetheless, careful tax planning is necessary to assess your personal situation. Obstacles such as dual citizenship can indeed create a risk of double taxation. For example, citizens of the United States will be liable for US taxes on worldwide income. This is despite the fact that you are not a resident of the United States and also citizen of Antigua and Barbuda.
Citizens who choose to reside overseas may also be exposed to personal income tax liability. This is especially true for residency programs outside of Antigua and Barbuda such as in certain European or South American countries.
Build a Strong Nexus for Effective Antigua Tax Residency
Non resident citizens residing overseas or those holding dual citizenship may require supplemental measures. As a result, you can strengthen your connection to the country and establish the most effective case for tax residency.
For example, ownership of real estate in Antigua and Barbuda will give you a personal address. In addition, real estate ownership enables you to qualify for the Antigua CIP. Also, sell the property at the end of the five year holding period and recover your investment capital while retaining citizenship in perpetuity.
Furthermore, we can assist successful applicants to acquire a social security number, local driver’s license and local SIM card/phone bills. You can use these personal details on residency applications and therefore build an unequivocal connection to Antigua and Barbuda.
We will ensure that your Antigua CIP application is successful. My partners and I have 35+ years of experience working with the Caribbean citizenship programs. Additionally, you can rely on follow up support and expert advice. This will help you accomplish your goals and maintain your new life as a global citizen. Contact me today and begin walking the path to global access and financial freedom.
Email: [email protected]