Antigua and Barbuda Taxes in 2025 Explained

Antigua and Barbuda Tax System Overview

Antigua and Barbuda offers a simple and investor-friendly tax system, designed to attract international residents and businesses. The country imposes no personal income tax, capital gains tax, or inheritance tax, making it a highly favorable jurisdiction for wealth preservation and tax efficiency. Revenue is mainly generated through indirect taxes, including value-added tax (VAT), property taxes, and customs duties. This tax structure supports economic growth while maintaining a competitive edge in attracting high-net-worth individuals and international investors.

Antigua and Barbuda Tax Treaties and Agreements

Antigua and Barbuda has established a network of tax treaties and agreements to promote international trade and investment. The country is a member of the Caribbean Community (CARICOM), which allows for tax exemptions and reduced tariffs on goods traded within member states. 

In addition, Antigua and Barbuda has established Double Taxation Treaties (DTC) with 12 jurisdictions, including several Caribbean nations such as Barbados, Belize, Dominica, Jamaica, Grenada, Guyana, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines. Moreover, the country maintains treaties with European nations, including Sweden and Switzerland, as well as with Trinidad and Tobago.

Beyond these treaties, Antigua and Barbuda has entered into Tax Information Exchange Agreements (TIEAs) with a broad range of countries, including Aruba, Australia, Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Liechtenstein, the Netherlands, Netherlands Antilles, Norway, Sweden, the United Kingdom, and the United States. These agreements promote transparency and the exchange of financial information for tax purposes.

Furthermore, Antigua and Barbuda is a signatory to the OECD's Convention on Mutual Assistance in Tax Matters, which ensures compliance with international standards for the automatic exchange of financial account information under the Common Reporting Standard (CRS). This commitment reflects the nation's adherence to global best practices in tax transparency and cooperation.

Antigua and Barbuda Tax Residence Explained

Antigua and Barbuda presents an attractive tax environment, particularly for individuals seeking to minimize personal income tax liabilities. The country's tax system is primarily based on indirect taxation, with no personal income tax levied on residents since its abolition in 2016. 

An individual is considered a tax resident of Antigua and Barbuda if they meet any of the following conditions:

• Physical Presence: Spending more than 183 days in the country within a calendar year. 
• Permanent Residency Program: This program allows individuals to become tax residents by:
  
  • Maintaining a permanent residential home in Antigua and Barbuda (owned or leased).
  • Spending a minimum of 30 days annually in the country.
  • Having a genuine and effective economic connection to the country. 
  • Earning a minimum annual income of $100,000.
  • Paying a flat annual tax of $20,000. 

Participants in the Permanent Residency Program are issued a Certificate of Residency and a Tax Identification Number (TIN) automatically. If you meet either of these criteria, you will be deemed a tax resident of Antigua and Barbuda and will be subject to taxation on your worldwide income. This means that income earned both within and outside Antigua and Barbuda will be subject to taxation.

As for a legal entity, a company is deemed a tax resident of Antigua and Barbuda if it meets any of the following criteria:

• Incorporated or registered in Antigua and Barbuda.
• Centrally managed and controlled within the country.
• Operating in Antigua and Barbuda.
• Deriving income from sources within Antigua and Barbuda.
• Owning assets in Antigua and Barbuda that generate income. 

Basically, Antigua and Barbuda's tax system is designed to attract both individuals and corporations by offering favorable tax rates and residency programs. 

Antigua and Barbuda Personal Taxes

Antigua and Barbuda has a straightforward and attractive personal tax system, aimed at encouraging investment and residency.

Personal Income Taxes

Antigua and Barbuda do not impose a personal income tax. In addition, tax residents are not taxed on dividends, royalties, or interest. Only non-tax residents pay a withholding tax of 12.5%. There is also a social contribution tax for employees in Antigua and Barbuda. 

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Value Added Tax (VAT)

VAT is a consumption tax that is levied on the supply of goods and services in Antigua and Barbuda. If you operate a business in Antigua and Barbuda, you are required to register for VAT if your annual turnover exceeds a certain threshold, which is currently set at EC$300,000. Once registered, you are required to charge a rate of 15% on your goods and services and remit the VAT to the government on a quarterly basis.

The companies that operate restaurants and hotels have to pay 14% VAT. 

If you are a consumer in Antigua and Barbuda, you are required to pay VAT on the goods and services that you purchase, unless they are exempt or zero-rated. Some of the goods and services that are exempt from VAT include basic food items, educational materials, and medical supplies. Zero-rated goods and services include exports, international transport, and certain financial services.

Property Tax

Property tax is a tax that is levied on the market value of real estate owned by individuals and legal entities in Antigua and Barbuda. The tax rate varies depending on the type and location of the property, and it is payable annually to the government. Property tax is assessed by the Valuation Department, which uses a formula based on the market value of the property, the location, and the type of use.

In Antigua and Barbuda, property taxes may apply to buyers, sellers, and owners of real estate as described below. 

Buyers:

Stamp Duty: When purchasing real estate in Antigua and Barbuda, buyers are typically subject to stamp duty of 2,5%, which is a tax levied on the transfer of property ownership. There is also an insurance fee of 0.2% and a land ownership license fee of 5%.

Sellers:

There is no capital gain on the income received from the sale. Sellers are required to pay only a stamp duty of 7.5%. 

Owners:

Residents and non-residents are required to pay the same real estate tax rate, ranging from 0.1% to 0.5% of a property's assessed value. Non-residents who own undeveloped land must pay a non-resident undeveloped land tax of between 10% and 20% of the land's value, depending on how long they have owned it.

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Antigua and Barbuda Benefits for Foreign Individuals

Foreign individuals who acquire citizenship in Antigua and Barbuda through the Citizenship by Investment program can benefit from the country's favorable tax regime. Notably, Antigua and Barbuda do not impose personal income tax, capital gains tax, inheritance tax, or wealth tax, allowing citizens to manage and grow their assets without these tax liabilities. 

While the country provides these tax benefits, individuals who choose to establish tax residency in Antigua and Barbuda may be subject to certain local taxes, such as property tax and value-added tax (VAT). Therefore, it is advisable to consult with a tax professional to understand the full implications based on personal circumstances.

Antigua and Barbuda Taxes for Legal Entities

In relation to taxes for companies, the following tax rates are applicable:

Corporate Income Tax

Companies incorporated in Antigua and Barbuda are subject to corporate income tax on their worldwide income. The standard corporate tax rate is 25%. However, certain entities, such as international business companies (IBCs) engaged in offshore activities, may benefit from tax incentives and exemptions.

It is important to note that tax incentives and special rates may apply to certain sectors or industries, such as tourism or manufacturing, to promote economic development and investment in the country. For example, the corporate tax rate for banks is 22.5%, while the rate for oil, telecommunications, and insurance companies is 10%.

Withholding Tax

Antigua and Barbuda imposes withholding tax on certain types of payments made to non-residents. This includes dividends, interest, royalties, and payments for technical services. The withholding tax rate is 25%.  

Value Added Tax (VAT)

Antigua and Barbuda operates a Value Added Tax (VAT) system, which applies to the provision of goods and services. The standard VAT rate is 15%. However, certain goods and services may be exempt or subject to a reduced rate.

Social Security Contributions

Employers in Antigua and Barbuda are required to contribute 6% to the country's social security system on behalf of their employees. These contributions help fund various social benefits.

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Antigua and Barbuda Benefits for Foreign Companies

Antigua and Barbuda offer several attractive benefits for International Business Companies (IBC), making it an appealing jurisdiction for foreign investors and entrepreneurs. Some of the key advantages include:

1. Tax Exemptions and Financial Privacy
   
   • No Tax Requirement: There is no requirement to pay taxes of any kind or to submit a tax return in Antigua and Barbuda.
   • Confidentiality: The identities of shareholders or beneficiaries are not made public, ensuring privacy and financial confidentiality.
2. Simplified Incorporation Process
   
   • Quick Incorporation: Companies can be incorporated quickly, usually within one business day.
   • Minimal Capital Requirements: There are no minimum capital requirements for incorporation and operation.
   • Flexibility in Ownership and Management:
     
     • 100% foreign ownership of company shares is permitted.
     • A sole shareholder is allowed to be the sole director of the IBC.
3. Medical Benefits Scheme (MBS) Contributions
   
   • Although companies enjoy tax exemptions, employees and self-employed individuals in Antigua and Barbuda are required to contribute to the Medical Benefits Scheme (MBS), which varies by age group:
     
     • Employed Individuals:
       
       • Aged 16 to 59: Pay 3.5% of gross wages; employers contribute the same amount.
       • Aged 60 to 69: Pay 2.5% of gross wages; employers are not required to contribute.
       • Aged 70 and over: No contributions required from employees or employers.
     • Self-Employed Individuals:
       
       • Aged 16 to 69: Pay 5% of gross earnings.
       • Aged 70 and over: No contributions required.

These benefits make Antigua and Barbuda an attractive choice for international business owners seeking a favorable tax environment, confidentiality, and a streamlined incorporation process.

Antigua and Barbuda Taxes for US Expats

Antigua and Barbuda offer a favorable tax environment for US expats. The Antigua and Barbuda Inland Revenue Department enforces the country's tax laws under the Tax Administration and Procedures Act No. 12 of 2018 (TAPA). The Customs and Excise Division collects duties on imported goods, although items from the CARICOM (Caribbean Community) are exempt from import duties.

Zero Percent Personal Income Tax

One of the main advantages for US expats is the zero percent personal income tax rate in Antigua and Barbuda. By obtaining citizenship through the Antigua and Barbuda Citizenship by Investment Program, US citizens can avoid double taxation. Only income generated within Antigua and Barbuda is subject to tax, whereas foreign income is not taxed locally.

US Foreign Tax Credit and Tax Incentives

• US Foreign Tax Credit: In 2024, the US Foreign Tax Credit is $120,000, which helps Americans living in Antigua and Barbuda significantly lower their US tax obligations.
• Tax Incentives for Companies: Antigua and Barbuda encourage companies to relocate their headquarters by offering tax benefits to both resident and non-resident companies. Individuals are exempt from local income tax on worldwide income or foreign-held assets.

US Tax Forms for Expats in Antigua and Barbuda

1. Foreign Tax Credit (Form 1116): Allows US taxpayers in Antigua and Barbuda to deduct income taxes paid to the local government.
2. Foreign Earned Income Exclusion (Form 2555): Permits US citizens to exclude income earned in Antigua and Barbuda from their US taxable income.
3. Foreign Housing Exclusion: US expats owning a primary residence in Antigua and Barbuda can deduct housing expenses from their US tax bill, provided they also claim the Foreign Earned Income Exclusion using Form 2555.

These tax incentives and exemptions make Antigua and Barbuda an attractive destination for US expats seeking a tax-efficient lifestyle.

Antigua and Barbuda Taxes for UK Expats

Antigua and Barbuda offer a highly attractive tax environment for UK expats looking to optimize their financial situation while enjoying a Caribbean lifestyle. With zero percent personal income tax and a range of incentives for both individuals and businesses, the country has become a popular destination for those seeking tax efficiency. 

Tax Incentives and Exemptions

• Tax Incentives for Companies: Antigua and Barbuda provide tax benefits for companies headquartered in the country, applicable to both resident and non-resident companies. Individuals are exempt from local income tax on worldwide income or foreign-held assets.
• No Requirement for Tax Residency Registration: Antigua and Barbuda citizens are not required to register their tax residency in the country, provided they earn income abroad.

UK Tax Forms for Expats in Antigua and Barbuda

1. Foreign Tax Credit Relief (FTCR): This can be claimed on a Self Assessment Tax return for UK citizens living abroad, allowing them to avoid double taxation on foreign income.
2. Form R43: Allows non-resident taxpayers of the United Kingdom to claim refunds for UK income personal allowances.
3. Form R105: Enables non-residents to receive UK savings interest tax-free, maximizing the benefits of living in a tax-friendly jurisdiction like Antigua and Barbuda.

For UK expats, the combination of local tax advantages and UK tax relief options presents a strategic opportunity to reduce their overall tax burden.

Tax Compliance in Antigua and Barbuda

Tax compliance in Antigua and Barbuda is crucial to avoid penalties and interest charges. For individuals, tax returns must be filed by March 31st for the preceding income year, with any taxes due by April 30th. Late filing incurs a penalty of $500 or 5% of the tax due, whichever is greater. Late payments attract a 10% penalty on the unpaid tax and interest of 2% per month. The Inland Revenue Department (IRD) may enforce collection through wage garnishment, asset seizure, or property liens.

For corporations, income tax is paid in monthly installments based on the previous year's assessment, with the balance due within three months after the taxation year ends. Late payments result in a 20% penalty on the unpaid tax, plus 1% interest for each complete month the balance remains outstanding. Failure to file returns on time leads to a penalty of $500 or 5% of the tax due, whichever is greater. 

Businesses registered under the Antigua and Barbuda Sales Tax (ABST) must file monthly returns, due one calendar month after the end of the tax period. Late filing incurs a penalty of $500 or 5% of the tax due, whichever is greater, while late payments face a 20% penalty on the unpaid tax and 1% interest per month. 

Non-compliance can lead to legal actions by the IRD, including wage garnishment, asset seizure, or property liens, to recover owed taxes. To avoid these consequences, it is essential to adhere to all tax filing and payment deadlines.

Tax Planning Tips for Individuals and Businesses in Antigua and Barbuda

Tax planning is an important aspect of managing your finances in Antigua and Barbuda, as it can help you reduce your tax liabilities and maximize your after-tax income. Some of the tax planning tips for individuals and businesses in Antigua and Barbuda include:

• Take advantage of eligible deductions and tax credits to reduce your taxable income.
• Structuring your business operations in a tax-efficient manner, such as using a corporation or a trust to hold your assets or investments.
• Investing in tax-exempt or tax-deferred products, such as retirement savings plans or government bonds.
• Claim the tax exemptions and incentives available for your business or investment, such as import duty exemptions, property tax exemptions, and tax holidays.
• Seeking professional advice from a tax advisor or accountant to ensure compliance with the tax laws and optimize your tax position. 

Incorporating these tax planning strategies can significantly enhance your financial well-being in Antigua and Barbuda. By proactively managing your tax obligations and leveraging available incentives, you can effectively reduce your tax liabilities and maximize after-tax income.

Antigua and Barbuda CIP Overview

Established in 2013, the Antigua and Barbuda Citizenship by Investment program is an exceptional opportunity for investors looking to optimize their tax liabilities while securing a second citizenship. With its favorable tax regime and flexible investment requirements, the program is particularly appealing to high-net-worth individuals seeking a strategic financial base in the Caribbean.  Key tax advantages include:

• No Tax on Foreign Income: Antigua and Barbuda do not impose taxes on income earned outside the country, enabling investors to retain more of their global earnings.
• Absence of Wealth, Inheritance, and Capital Gains Taxes: There are no taxes on personal wealth, inheritances, or capital gains, offering efficient wealth management and succession planning opportunities.
• No Residency Requirement for Tax Purposes: Investors are not required to reside in Antigua and Barbuda to benefit from its tax regime, providing flexibility for personal and business affairs.

To qualify for economic citizenship through investment in Antigua and Barbuda, applicants must be at least 18 years old and possess a clean criminal record, verified through a detailed background check. They must also be in good health and undergo a medical examination. Additionally, applicants must meet the investment requirements outlined by the government. The program’s requirements are straightforward, making it accessible to reputable investors worldwide. Overall, Antigua and Barbuda’s program offers three primary investment options:

1. National Development Fund (NDF) Contribution: A non-refundable donation of at least USD 230,000, which supports national development projects.
2. Real Estate Investment: A minimum investment of USD 300,000 in a government-approved real estate project, with a required holding period of five years.
3. Business Investment: A minimum investment of USD 1.5 million directly into an eligible business as a sole investor, or USD 5 million as a joint investment with at least two investors contributing USD 400,000 each.

Applicants can include dependents such as a spouse, children under 30, parents and grandparents over 55, and unmarried siblings of the principal applicant or spouse. Antigua and Barbuda permit dual citizenship, allowing investors to retain their original nationality while benefiting from visa-free or visa-on-arrival access to various countries. The application process is efficient, typically taking 3-6 months from submission to approval. This streamlined process, combined with the country’s strategic tax advantages, makes Antigua and Barbuda a highly attractive destination for investors seeking global mobility, financial security, and lifestyle benefits.

FAQ

Is Antigua and Barbuda a Tax Haven?

Antigua and Barbuda is often regarded as a tax haven due to its attractive tax policies, including the absence of personal income tax, capital gains tax, and inheritance tax. However, Antigua and Barbuda is committed to international tax transparency and compliance. It has signed multiple Tax Information Exchange Agreements (TIEAs) and participates in the OECD's Common Reporting Standard (CRS), ensuring the automatic exchange of financial information with other countries. 

Who Pays Taxes in Antigua and Barbuda?

In Antigua and Barbuda, residents and non-residents are generally not subject to personal income tax, which significantly reduces the tax burden on individuals. Instead, the primary taxes that apply include property tax, value-added tax (VAT) on goods and services, and import duties. Property owners are required to pay property taxes based on the assessed value of their real estate, while consumers contribute to government revenue through VAT on purchases. Businesses operating in Antigua and Barbuda are subject to corporate income tax, although there are exemptions and incentives available, particularly for companies involved in tourism, manufacturing, and international business services. 

How to Become a Tax Resident of Antigua and Barbuda?

To become a tax resident of Antigua and Barbuda, an individual must either spend more than 183 days in the country within a calendar year or participate in the Permanent Residency Program. This program requires maintaining a permanent residential home (owned or leased), spending at least 30 days annually in Antigua and Barbuda, demonstrating a genuine economic connection, earning a minimum annual income of $100,000, and paying a flat annual tax of $20,000. Participants receive a Certificate of Residency and a Tax Identification Number (TIN), allowing them to be taxed on their worldwide income. For legal entities, a company is considered a tax resident if it is incorporated, centrally managed, or operates in Antigua and Barbuda, or if it generates income from local sources or owns income-producing assets in the country. Antigua and Barbuda's tax system is designed to attract both individuals and corporations with favorable tax rates and flexible residency programs.

Is there a Property Tax in Antigua and Barbuda?

Yes, there is a property tax in Antigua and Barbuda. It is levied annually on the market value of real estate owned by individuals and legal entities. The Inland Revenue Department's Valuation Division assesses the property's market value, considering factors such as location and usage. Tax rates vary based on property classification, ranging from 0.1% to 0.5% of the assessed value. For instance, residential properties are typically taxed at 0.3%, while commercial properties may have different rates. Non-residents owning undeveloped land are subject to an additional undeveloped land tax, which ranges from 10% to 20% of the land's value, depending on the duration of ownership.

What are Other Popular Countries for Tax Optimization?

Several countries are well-known for their advantageous tax systems, drawing individuals and businesses looking to optimize their tax obligations. The Cayman Islands stand out for having no direct taxes, such as income, corporate, capital gains, inheritance, or withholding taxes, making them a favored destination for international capital, especially from hedge funds. The United Arab Emirates (UAE) provides a tax-free environment with no personal income tax, attracting entrepreneurs, investors, and high-net-worth individuals aiming to reduce their tax burdens. Singapore is recognized for its low corporate tax rates and the absence of capital gains tax, offering a business-friendly setting with a strong financial infrastructure that appeals to multinational companies and investors. Andorra offers a favorable tax structure with a maximum personal income tax rate of 10% and a corporate tax rate of 10%, along with no wealth or inheritance taxes, making it an attractive option for individuals and businesses seeking tax optimization.