Caribbean taxes: how much do individuals and companies pay?

Not taxed

Not taxed

Income from labour and entrepreneurial activities

10% — the first EC$24,000;

28% — from EC$24,000

Income from employment and business activities, royalties, interest, rent, except for the first EC$18,400

For amount over EC$18,400:

10% — EC$0 to EC$10,000;

15% — EC$10,000 to EC$20,000;

20% — EC$20,000 to EC$30,000;

30% — above EC$30,000

Income from labour and business activities, royalties, interest, rent

15% — EC$0 to EC$20,000;

25% — EC$20,000 to EC$50,000;

35% — above EC$50,000

Taxes on dividends, royalties and interest are not paid by all Caribbean tax residents except for St Lucians. The St Lucia tax rate on interest and royalties is 10% for income from the country’s sources.

Non-residents who receive dividends, royalties and interest from a source in the country pay taxes too. Exceptions are interest and royalties in Grenada and dividends in St Lucia.

Tax rates for non-residents individuals

Country

Dividends

Interests

Royalty

15%

15% for CARICOM* residents;

25% for non-residents

15% for CARICOM* residents;

25% for non-residents

15%

15%

25%

Social contributions from wages received from a source in the country are paid by tax residents and non-residents. For both categories, the rate is the same and, depending on the local tax law, ranges from 5 to 6%. The money goes to support healthcare and education.

Levon, a Dominica citizen and tax resident,

Pays taxes in Dominica since 2021

I obtained Dominica citizenship in 2020, became a tax resident, and relocated my business there in 2021. As a result, I reduced the tax burden by 1.5 times.

Taxes for legal entities

Caribbean companies do not pay capital gains tax, but they do pay corporate tax. Legal entities pay VAT and tax on interest and royalties in some cases.

Corporate tax is paid by the resident company on the net profit it has received in the country and abroad. The exception is St Lucia corporate tax. Its residents pay tax on the profits they receive in the country.

Non-residents pay tax only on the net income they receive in the Caribbean. The tax rate is the same for residents and non-residents.

Corporate tax rates in Caribbean countries

Country

Tax rate

Taxation object

25%

Net profit

25%

Net profit

28%

Net profit

30%

Income received in the country

33%

Net profit

VAT is paid by legal entities engaged in wholesale and retail trade or the provision of services in the territory of the Caribbean states.

Wholesale and retail companies pay tax if the amount of income from a taxable supply exceeds EC$150,000 or $55,500. Companies that provide services pay VAT if the total amount of income from services exceeds EC$96,000 or $35,500.

The standard VAT rate is 15%. A reduced rate of 10% applies to hotel accommodation, tourism and restaurant business.

VAT is not paid for services: financial, educational, religious, construction, sale of real estate, international and domestic transportation of goods and passengers, sale of agricultural products, electricity supply, and daycare services.

Tax on dividends, royalties and interest at source is not paid by companies that are tax residents of Caribbean countries, except for St Lucia. Resident companies pay tax on interest and royalties in St Lucia at 10%.

Caribbean non-resident companies pay withholding tax on dividends, royalties and interest at 15% to 25%.

Withholding tax rates for non-resident companies

Dividends

Interests

Royalty

15% for CARICOM residents;

25% for non-residents

15% for CARICOM residents;

25% for non-residents

15%

15%

15%

25%

Tax on dividends received by companies is not paid by Grenada residents. In other Caribbean countries, received dividends are included in the company’s net profit, which is subject to corporate tax.

Property taxes in the Caribbean

Taxes and government fees are related to buying, owning and selling real estate. Property tax laws differ for individuals and legal entities, for tax residents and non-residents, and for citizens and investors who do not have a Caribbean passport.

The real estate purchase without a land acquisition is accompanied by transfer tax and stamp duty payment. The tax rates for legal entities and individuals are the same for residents and non-residents, except for Grenada.

Tax rates and stamp duties when buying real estate

Stamp duty

Property transfer tax

Stamp duty

Country

For individuals

For companies

For individuals

For companies

Not taxed

5—15%

Not taxed

Not taxed

2,5%

Not taxed

Other rules apply to investors who are not the country’s citizens. If an investor buys a villa, he acquires a special license to own land in 5—10% of the plot value. If an investor buys a villa to participate in the citizenship program, he does not need a license.

Property ownership tax is not paid by Dominica residents and non-residents, whether individuals or legal entities. In other Caribbean states, the purchase or sale of a property is taxed at 0.1 to 0,5%. The tax rate depends on the property type.

Property tax rates

Antigua and Barbuda — 0.1 to 0,5%
Grenada — 0.1 to 0,5%
St Lucia — 0,25% for residential properties and 0,4% for commercial properties
St Kitts and Nevis — 0.2 to 0,3%
Dominica — not taxed

The tax rate for the real estate sale in the Caribbean varies from 2.5 to 15% and depends on the property type and the seller status.

St Lucia tax rates also depend on the value of the property. For example, for real estate worth up to EC$75,000, the seller with the country’s passport will pay a tax of 2,5%. For an object worth up to EC$150,000, the tax is 3,5%, and for an object costing over the EC$150,000 EC$ — 5%.

Tax rates and stamp duties for real estate sellers

Country

Tax rate

Stamp duty

5% — for citizens: residents and non-residents

15% — for non-citizens and/or non-residents

Not paid

Not taxed

7,5%

2.5 to 5% — for citizens

10% — for non-citizens

2.5 to 5% — for citizens

10% — for non-citizens

Not taxed

10%