Taxes for individuals in Caribbean countries

Caribbean countries don’t have taxes on capital gains and inheritance. There is no income tax in some of them, too.

Investors can obtain citizenship in Antigua and Barbuda, Dominica, Grenada, St Lucia, or St Kitts and Nevis. The tax systems of these countries are similar, but there are several significant differences.

Withholding taxes on interest, dividends and royalties

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

ag-flag

Antigua and Barbuda

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

dm-flag

Dominica

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

gd-flag

Grenada

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

kn-flag

St Kitts and Nevis

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

lc-flag

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

Material prepared by an expert

Frequently asked questions

  • Which Caribbean country has no personal income tax?

    Antigua and Barbuda and St Kitts and Nevis have no taxes on personal income.

  • Is the Caribbean a tax haven?

    Yes, the Caribbean region is a tax haven. For example, there are no income taxes in Antigua and Barbuda and St Kitts and Nevis.

    There are also no taxes on dividends, interest and royalties in all Caribbean countries except St Lucia.

  • What types of taxes should you pay in Caribbean countries?

    Individuals in the Caribbean pay taxes on income, dividends, royalties and interest. They also need to pay social contributions.

    Legal entities pay corporate tax at the 25—33% rate. The VAT is 15%. It is paid by companies that engage in wholesale and retail trade as well as provision of services in the Caribbean.

    St Lucia residents also pay tax on interest and royalties at 10% rate.

EU and beneficial tax regimes