28 July 2022
Understanding Taxes and Tax Residency In Antigua & Barbuda
Antigua & Barbuda is known as a tropical paradise offering 365 white sandy beaches as well as offering an attractive tax system with no personal income tax applicable.
Antigua & Barbuda offers a unique residency program for foreigners to take advantage of the tax regime and obtain tax residency within Antigua & Barbuda. Foreigners must maintain a residential address (through purchase or lease), spend at least 30 days a year in the country and have an annual income of at least USD 100K. Once approved, applicants will then be subject to a flat rate of USD 20 000 in annual taxes.
Individuals can also move their tax residency status to Antigua & Barbuda, by obtaining citizenship through the Antigua & Barbuda citizenship-by-investment (CBI) program and reside within Antigua & Barbuda for a minimum of 183 days within the fiscal year.
The currency used in Antigua & Barbuda is the Easter Caribbean Dollar (XCD).
Income, Inheritance, Wealth, Capital Gains and Gift Tax
Antigua & Barbuda does not impose any taxes on income, inheritance, wealth, capital gains or gifts tax for residents or non-residents.
Non-resident individuals will be subject to a 25% withholding tax on dividends, interest and royalties generated within Antigua & Barbuda
Employees are subject to 5.5% social security contributions where employers are required to match the 5.5% of the employee’s wage.
Resident companies are subject to a corporate tax of 25%.
Non-resident companies are tax exempt on all foreign sourced income, however will be subject to a withholding tax of 25% on local income, dividends, interest and royalties as well as payments to non-residents.
Similar to VAT, the Antigua & Barbuda Sales Tax (ABST) IS 15% with a reduced rate for hotels and restaurants and 0% for certain goods and services.
Antigua & Barbuda imposes a stamp duty of 7.5% for the seller and 2.5% for the buyer. In additional, extra fees are imposed for non-citizens:
- Appreciation tax of 5% for non-citizen sellers
- Alien Landholding license of 5% for non-citizen buyers
Antigua & Barbuda imposes property tax based on a simple formula of: property value times tax rate.
*Foreign non-residents who own undeveloped land in the country are required to pay 10-20% of the value of the undeveloped land.
CRS requires financial institutions to identify customer tax residencies and report financial accounts held directly or indirectly by foreign tax residents to local tax authorities. It also requires tax authorities (in participating countries) to exchange this information. Antigua & Barbuda currently holds a bilateral agreement with: Australia, Belgium, Denmark, Faroe Islands, Finland, France, Greenland, Iceland, Ireland, Liechtenstein, Netherlands, Netherlands Antilles, Norway, Portugal, Sweden, UK, and the US. Please refer to OECD´S website for more information on CRS reporting and TIEAS.
Individuals with accounts and other assets in Financial Institutions operating within Antigua & Barbuda, may have their account and asset information reported to the United States Internal Revenue Service (IRS) where that individual meets the criteria of a U.S. Person, and where the account meets the criteria as a Reportable Account under FATCA.
Double Taxation Treaties
Antigua & Barbuda has signed double taxation with other CARICOM member countries, Switzerland and the UK.
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