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Saint Lucia does not have a tax residency program per se. Nonetheless, Saint Lucia tax residency can be quickly obtained through their citizenship by investment program (CIP). The CIP is indeed a most effective method for individuals to obtain the potential tax haven benefits of Saint Lucia.
In addition, Saint Lucia income tax laws offer potential tax advantages to certain CIP applicants. However, careful analysis is necessary. Take note that tax residents may incur personal income tax liability on their global income. As a result, investors who are not careful may end up with the same tax liability they were seeking to escape.
On the other hand, nonresidents do not incur tax on global income sources with the caveat that they are “not ordinarily resident” and they do not remit their overseas income to Saint Lucia. Additionally, there is no form of capital gains tax. Read more below for further clarification.
How to Qualify for Saint Lucia Tax Residency
Saint Lucia tax laws are applied according to your designated residency status which is classified using three general parameters. You are a Saint Lucia tax resident:
- If you have a permanent place of abode in Saint Lucia and you’re present for some time during the tax year.
- You are physically present for not less than 183 days during the tax year.
- You are a tax resident of the previous or succeeding tax year who is physically present for less than 183 days during the current tax year.
If you fit any of the above three criteria, you are a tax resident. Your assessable income is clarified under three classifications:
- Residents and Ordinary Residents – You are liable for tax on all worldwide income sources whether received from inside or outside of Saint Lucia.
- Resident but not Ordinarily Resident – You are liable for tax on all locally sourced income. Additionally, international income which is remitted to Saint Lucia is taxed accordingly.
- Nonresident – Nonresidents are only liable for tax on income sourced from within Saint Lucia.
Personal Income Tax Rates
The Saint Lucia Inland Revenue Department taxes net income if the amount is over $18,400 after allowances and deductions. Income above the threshold is taxable with the exclusion of capital gains which is exempt.
|Saint Lucia Income Levels (XCD)||Tax Rate|
|$10,001-$20,000||15% + $1,000|
|$20,000-$30,001||20% + $2,500|
|$30,001 and above||30% + $3,500|
Real Property Tax Rates
Saint Lucia owners of real property are liable for tax on residential, commercial and combination properties which are both residential and also commercial. Additionally, the government assesses the real property value using the open market.
- Residential property is assessed at 0.25%.
- Commercial property is assessed at 0.4%
- If the property is a combination of residential and also commercial then the residential rate is applied to the residential portion and the commercial rate applied to the business portion.
Stamp duty is also charged against the sale, transfer or conveyance of real property. Furthermore, the tax rate is significantly higher for non citizen sellers and is adjusted accordingly.
|Deed of Exchange (with consideration)||2% of consideration|
|Deed of Transfer (conveyance)||2% of consideration|
|Deed of Sale (purchaser – conveyance)||2% of consideration|
|Deed of Sale/Transfer (non citizen seller)||10%|
|Deed of Sale/Transfer (seller is citizen)||First $50,000 exempt|
Next $25,000 – 2.5%
Next $75,000 – 3.5%
Remainder – 5%
Value Added Tax (VAT) and Consumption Taxes
Saint Lucia levies both VAT and Consumption Tax on imported goods and also goods manufactured locally. The difference is that VAT is primarily levied on imports by vendors who sell locally B2B and also B2C.
The applicable VAT rate is 12.5% with a lower 10% rate charged to hotel accommodations and the tourism sector. Additionally, certain items such as such as food, water, electricity and non-elective medical supplies etc. are zero rated or exempt from VAT.
Consumption Tax is levied at 0% to 35% against imports and also goods that are manufactured in Saint Lucia.
Saint Lucia Tax Residency for Companies
Companies that are managed and controlled in Saint Lucia are considered resident for tax purposes. As a result, they are charged a rate of 33.3% on worldwide net income.
Additionally, nonresident companies conducting business through a permanent establishment in Saint Lucia will pay a tax rate of 33.3%. This applies to both local and overseas income.
Also, nonresident companies conducting business on Saint Lucia, through conduits other than a permanent establishment are subject to withholding tax of 25% on gross income.
How to Benefit from Saint Lucia Tax Residency
The Caribbean lifestyle is so alluring but it warrants careful analysis of your personal circumstances. As a result of accurate assessment, you will likely reach the conclusion that no tax residency is better than high tax residency. This is especially true if the country where you declare tax residency requires you to pay tax on worldwide income.
Indeed, countries such as Saint Lucia do have rather high tax rates for resident companies and also individuals. Additionally, paying tax on worldwide income is a heavy burden that may not offer you cost effective reciprocal benefits.
However, as a nonresident citizen of Saint Lucia you have no tax obligations on overseas income. Additionally, there is no capital gains tax on Saint Lucia. As a result, it is not necessary to be a designated “tax resident” as defined by the government’s physical presence test to still obtain the tax benefits of Saint Lucia’s second citizenship program. This is especially true if your income is heavily weighted in capital gains.
For example, citizens of Saint Lucia have the right to live and work in any of the CARICOM or OECS countries. Furthermore, OECS countries such as Saint Kitts and Nevis have totally eliminated their personal income tax. As a result, citizens of Saint Lucia can permanently reside in St Kitts tax free under OECS or CARICOM agreements without being citizens of St Kitts and Nevis.
Additionally, St Kitts and Nevis CIP charges a premium rate which is a minimum of US$50,000 higher than countries such as Saint Lucia. These opportunities and many more are accessible through the Saint Lucia CIP.
Acquire the Benefits of Saint Lucia Tax Residency through the CIP
The Saint Lucia government allows qualified applicants to obtain citizenship of Saint Lucia by making a minimum investment into a government approved segment of the local economy.
Qualified applicants must also submit to a medical exam and thorough background check. If successful, the main applicant and their family can have Saint Lucia passports within 2-3 months.
Saint Lucia CIP offers applicants four investment options to qualify for the program.
- Make a minimum investment of US$100,000 into the government’s National Economic Fund. The government will disperse the funds into needful areas of the economy such as investing in tourism infrastructure, schools, medical facilities etc.
- Invest a minimum of US$300,000 into a government approved real estate development. There is a five year holding period after which the investor can sell the property to recoup their capital while retaining their Saint Lucia citizenship in perpetuity.
- Saint Lucia also offers applicants the opportunity to qualify by investing a minimum of US$250,000 for a minimum of 6 years in government bonds. After the holding period is satisfied, the investor can sell the bonds to recoup their investment while retaining citizenship in perpetuity.
- Applicants can also qualify by purchasing a local business for a minimum of US$3.5 million which creates at least three permanent local jobs. Alternatively, six applicants can join together and mutually invest one million each for a total investment of US$6,000,000 which must include the creation of six local jobs.
Apply Today for Saint Lucia CIP
After over 35 years of experience working with the Caribbean CIPs we have become well integrated with the local government agencies, business owners and real estate developers.
As a result, your application will be expedient with few additional expenses besides the required minimum investment. Additionally, qualified applicants have several options to recoup their capital while retaining Saint Lucia citizenship in perpetuity.
Would you like to know more about the benefits of global citizenship? Contact me today for your free personal assessment and get fast approval.