Taxes for individuals in Caribbean countries

Some Caribbean countries that offer citizenship by investment have no income taxes. They are Antigua and Barbuda and St Kitts and Nevis. In Grenada, Dominica, and St Lucia, foreigners pay taxes only on income earned in the country.

Tax rates are progressive. Thresholds are calculated in local currency, East Caribbean dollars (EC$). One East Caribbean dollar is US$0.37.

Tax residents of the listed Caribbean countries spend at least 183 days a year there. Participation in citizenship by investment programs doesn’t oblige applicants to reside for a long time in the Caribbean, either before or after obtaining citizenship. An investor can get a passport but not become a tax resident of the state.

In Saint Lucia, both residents and non-residents pay tax only on income earned in the country: salaries, business activities, interest, royalties, and rent.

The rates are the same for all taxpayers:

• up to EC$10,000 — 10%;

• EC$10,000 to EC$20,000 — 15%;

• EC$20,000 to EC$30,000 — 20%;

• over EC$30,000 — 30%.

Tax residents don’t pay any tax on the first EC$18,400, and standard rates apply to income above this amount. Non-residents pay tax on any amount and are not entitled to deductions.

In Grenada, both residents and non-residents pay tax only on income received from local sources. Taxable income includes salaries and business income.

The rates are similar to tax residents and non-residents:

• the first EC$24,000 — 10%;

• the rest of the income — 28%.

In Dominica, residents pay income tax on global and Dominica income, while non‑residents only pay income tax on Dominica income. The tax is levied on salaries, business activities, interest, royalties, and rent.

The rates are the same for residents and non-residents:

• up to EC$20,000 — 15%;

• EC$20,000 to EC$50,000 — 25%;

• over EC$50,000 — 35%.

Antigua and Barbuda and St Kitts and Nevis have no income tax. Even if the investor moves to the country of second citizenship and works or conducts business there, there will be no income tax to pay.

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In most cases, the investor does not pay dividends, interest, and royalties taxes. The exception is Dominica and St Lucia, where interest and royalties are subject to income tax.

Taxes on dividends, interest and royalties are withheld at the source, a company registered in the selected Caribbean country. The tax amount depends on the tax residency of the recipient.

Withholding tax rates in Caribbean countries

Country

Withholding tax on dividends, interest and royalties

Antigua and Barbuda

When paid to tax residents — 0%
When paid to non-residents — 25%

Dominica

When paid to tax residents — 0%
When paid to non-residents — 15%

Grenada

When paid to tax residents — 0%
When paid to non-residents — 15% on dividends, 0% on interest and royalty

St Kitts and Nevis

When paid to tax residents — 0%
When paid to non-residents — 15%

St Lucia

When paid to tax residents — 0% on dividends, 10% on interest and royalty

When paid to non-residents — 0% on dividends, 15% on interest and royalty for tax residents of CARICOM countries, 25% on interest and royalty for tax residents of other countries

Investors who do business buy real estate on the islands pay social contributions and several taxes.

Social contributions range between 5% and 7% of an employee’s salary.

Property tax reaches 0,5% of the value. In some countries, the rate depends on the property purpose. For example, they pay 0,4% for commercial property and 0,25% for residential property in St Lucia.

Taxes on the purchase and sale of real estate typically include a transfer tax and a stamp duty. In some countries, only one tax is levied: for example, you must pay only a stamp duty in St Kitts and Nevis and Antigua and Barbuda, while you pay only a transfer tax in Grenada.

The transfer tax is 2,5% to 15%. Both the seller and the buyer pay the tax. The rate depends on the party of the transaction and, in some cases, on the country of citizenship.

The stamp duty also depends on the transaction party and, sometimes, on the country of citizenship. The rate is 2% to 10%.

Participants of investment programs buy real estate on special terms: they don’t need to buy a licence for the right to own land like other foreigners and spend an additional 5—10% of the property value on this.

Grenada, Morne Rouge

$270,000 — $564,000

Apartments in a residential complex by the ocean

35 m² — 93 m²

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Grenada, Saint Davids

$270,000+

Share in a modern SPA complex resort

Grenada, St. George's

$270,000 — $350,000

Share or apartments in full ownership in an oceanfront university complex

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1. Caribbean countries don’t have taxes on capital gains and inheritance.

2. Antigua and Barbuda and St Kitts and Nevis don’t have a personal income tax. In other countries, the tax rate is progressive: 10% to 35%, depending on the income amount.

3. One must spend at least 183 days a year in the chosen Caribbean country to become its tax resident.

4. Participants of the Caribbean CBI programs don’t have to live for a long time in the chosen country, neither before nor after getting a passport. Thus, they don’t have to become tax residents.

5. The withholding tax isn’t levied if dividends, interest, or royalties are paid to tax residents. If an investor registers a company in a Caribbean country while remaining a tax resident of another state, the withholding tax of up to 25% applies, depending on the country.

6. Investors who run businesses or work in a Caribbean country pay social contributions for themselves and their employees.

7. Purchase, sale, and ownership of real estate are taxed. Participants of the CBI programs buy shares and properties on preferential terms: they don’t have to acquire costly licences for land ownership.

Practical Guide

Practical Guide

Compare the Caribbean and Vanuatu citizenship by investment programs

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