St Lucia tax rates for individuals and businesses

The main taxes paid by individuals are income tax, social contributions, tax on royalties and interest. Meanwhile, there are no taxes on inheritance and capital gains in the country.

Income tax in St Lucia is levied on:

• labour activity,

• business income,

• royalty,

• interest,

• rent.

The country has implemented progressive taxation: the wealthier a person, the higher the tax rates. Income up to EC$18,400 is not taxed for both residents and non-residents. Amounts above EC$18,400 are taxed at fixed rates.

Social contributions are the same for residents and non-residents of the country: 5% of monthly income. On behalf of the employee, they are paid by the employer to the National Insurance Corporation, which distributes them to pensions, sickness benefits and disability allowances.

The tax rate on interest and royalties depends on the status: for residents of St Lucia or the Caribbean Community (CARICOM)*, the rate is lower than for non-residents.

*Caribbean Community (CARICOM) — trade and economic union of the Caribbean countries. Besides Saint Lucia, it includes 14 other countries

St Lucia was a British colony for more than a hundred years. In 1979, the country gained independence. It has been part of the British Commonwealth as a sovereign state ever since.

A foreigner becomes a tax resident if he spends more than 183 days a year in the country. This requires a permanent or temporary residence permit or St Lucia citizenship.

Of all the statuses, St Lucia citizenship provides the most benefits. It helps optimise taxes and travel without visas to 146 countries of the world, including the UK, the Schengen countries, Singapore and Hong Kong.

Benefits of the St Lucia passport

Participation in the investment program is the fastest way to become a citizen. An applicant invests in the economy by making a non-refundable contribution to a government fund, buying bonds or real estate, and putting money into a business.

In the case of a non-refundable contribution, the investor donates at least $100,000 to the National Economic Fund of St Lucia. The exact amount of the contribution depends on the composition of the family:

• $100,000 for an investor alone;

• $140,000 for an investor and a spouse;

• $150,000 for an investor, a spouse and two relatives: parents or children who are financially dependent on the applicant.

In the case of buying government bonds, the minimum investment is $300,000. After 5—7 years of holding, the bonds can be sold, and the money returned. In addition to buying bonds, the investor pays an administrative fee of $50,000.

In the case of buying real estate, the minimum investment amount under the program is $200,000. After 5 years, the property can be sold, and the investments returned. Additionally, the investor pays a state fee of at least $30,000.

Investments in business start from $1,000,000. A foreigner invests money in projects approved by the government. If the investor participates in the program on their own, then the investment is $3,500,000. It is also possible to team up with other applicants and make a collective investment of $6,000,000. Then the share of one participant will be reduced to $1,000,000.

Obtaining a passport under the investment program takes 3 to 6 months. After that, the investor registers in the taxpayers’ database and receives a Tax ID or a tax number. Then, upon request, the Revenue Service issues a Tax Code to the investor, allowing filing tax returns.

Individual cost calculation for St Lucia citizenship

Get the cost calculation

Individuals fill in the TD4 or TD5 form, which they get from their employer. To receive a tax deduction, one needs to collect receipts that confirm expenses.

Visiting the tax office is unnecessary: you can submit documents and file a tax return online.

The deadline for filing tax returns is March 31st.

Legal entities fill out the forms TD4, TD5 and TD6, the contractor transfer form, and make a list of the company’s employees. Then, the documents are submitted to the tax office in a sealed envelope until January 31st. If you are late, a fine of EC$500 will be charged for each month of delay.

Property taxes in St Lucia

When buying real estate in St Lucia, individuals and legal entities pay transfer tax and stamp duty.

The property transfer tax for individuals and companies is the same, that is 2%. Buyers pay it.

The stamp duty is paid by both the buyer and the seller. The tax is 2% for the buyer, while the seller’s tax rate depends on his residence. Non-residents of St Lucia pay a 10% tax, while the real estate value defines the rate for residents.

The annual property tax is 0,25% of the value for residential property and 0,4% for commercial property. Tax rates are the same for individuals and companies, regardless of their residency status.

Examples of properties in St Lucia

St Lucia, Micoud

$3,000,000+

Luxurious villa with panoramic ocean and island views

929 m²

10

10

St Lucia, Micoud

$2,200,000+

Two-level villa with pool and landscape garden

789 m²

6

6

St Lucia, Micoud

$2,750,000+

Luxury villa on the first coastline

518 m²

4

4

A company is considered a tax resident of St Lucia if it is registered in the country’s jurisdiction or managed through permanent missions.

VAT, or value-added tax, is paid by companies with a sales turnover of more than EC$400,000 per year. The standard VAT rate is 12,5%.

Educational, financial, insurance, medical and transport services, rental housing, fuel, water, electricity, goods for export and sale in duty-free shops are not subject to VAT.

Tax on interest and royalties for resident companies is 10%, while for non-residents, it is 15 to 25%.

*Caribbean Community (CARICOM) — trade and economic union of the Caribbean countries. Besides Saint Lucia, it includes 14 other countries

St Lucia is a member of the Caribbean Community (CARICOM) and therefore has double tax agreements with some of the Caribbean countries:

• Antigua and Barbuda;

• Barbados;

• Belize;

• Dominica;

• Grenada;

• Guyana;

• Jamaica;

• Montserrat;

• St Kitts and Nevis;

• St Vincent and the Grenadines;

• Trinidad and Tobago.

Resident individuals in St Lucia do not pay income tax if they earn less than EC$18,400 per year. Tax on interest and royalties is reduced to 10%, while non-residents pay a 15—25% tax.

Legal entities are exempt from paying VAT if their sales turnover does not exceed EC$400,000 per year. They pay tax on interest and royalties at 10% instead of 15—25%.

When selling real estate, a resident seller pays a maximum of 5% stamp duty, while for a non-resident seller, the rate is twice as high — 10%.