St Kitts Taxes: Your Ultimate Guide 2024

St. Kitts and Nevis has the world's first and most popular Citizenship by Investment (CBI) program, which permits individuals to obtain citizenship and a second passport in exchange for a substantial financial investment in the country. Since 1984, the CBI program has been operating successfully, attracting many wealthy individuals and investors who seek visa-free travel, international mobility, and business opportunities. Investors participating in the CBI program benefit from zero taxation in Saint Kitts and Nevis.

In this comprehensive guide, we will explore the tax system in St. Kitts and Nevis, including personal income tax, corporate tax, value-added tax, property tax, and other taxes. We will also discuss tax residency, tax planning, and the St. Kitts and Nevis Citizenship by Investment (CBI) program.

St Kitts and Nevis Tax Haven Overview

St. Kitts and Nevis has a straightforward tax system. The country levies taxes on individuals and businesses. Individual taxation in this country is considered to be among the best in the world. Personal income, inheritance, wealth, and gifts are not taxable in this jurisdiction. Capital gains tax is only levied if the asset is sold within 12 months of its acquisition date.

St. Kitts and Nevis has developed a reputation as an offshore financial center, offering various financial services and incentives to international businesses and investors. These include tax incentives for offshore banking, insurance, and international trusts. The offshore sector is regulated by the Financial Services Regulatory Commission.

It is worth noting that St. Kitts and Nevis has signed double taxation agreements with several countries to avoid double taxation of income. 

St Kitts and Nevis Tax Resident

Tax residents are subject to taxation. In St. Kitts and Nevis, individuals meeting specific criteria are regarded as tax residents. Those who reside in the country for more than 183 days annually, possess a registered address within its borders, and engage in various social, economic, political, and cultural activities fall under this category. Similarly, companies registered in St. Kitts and Nevis and operated and managed within its jurisdiction are also classified as tax residents.

St Kitts and Nevis Non-Tax Resident

Non-tax residents are exempt from taxation. Individuals holding citizenship in St. Kitts and Nevis but residing elsewhere are considered non-tax residents of the country. 

Comparably, companies not registered or managed within the nation's boundaries are also deemed non-tax residents. However, if these companies conduct business activities, such as selling goods or services within St. Kitts and Nevis, they are obligated to pay taxes on the income generated within the country.

Does St Kitts have a tax treaty with the US?

St. Kitts and Nevis does not have a bilateral tax treaty specifically with the United States. However, the United States does have a Tax Information Exchange Agreement (TIEA) with St. Kitts and Nevis. TIEAs are agreements that facilitate the exchange of information for tax purposes between countries. They are designed to prevent tax evasion and promote transparency in tax matters. While a TIEA may not provide the same level of benefits and protections as a full tax treaty, it still allows for cooperation between the two countries in matters of tax enforcement and compliance.

5 Benefits of St Kitts and Nevis Taxes

St. Kitts and Nevis offers a compelling proposition to individuals and businesses seeking favorable tax conditions, including the following:

Tax Exemption on Foreign Income

St Kitts and Nevis offers a territorial tax system, meaning that income earned outside the country is not subject to taxation. This benefit is particularly attractive for individuals and businesses with international sources of income.

Low Income Tax Rates

For income earned within the country, St Kitts and Nevis maintains relatively low income tax rates. This allows residents to retain more of their earnings, enhancing their financial well-being.

Tax-Friendly Corporate Environment

The country offers favorable tax conditions for corporations, including a corporate tax rate that is competitive on the global stage. Combined with exemptions for foreign income, this makes St Kitts and Nevis an attractive location for establishing and operating businesses. 

Wealth and Inheritance Tax Exemptions

St Kitts and Nevis does not impose wealth or inheritance taxes, providing individuals and families with the opportunity to preserve and pass on their assets without additional tax burdens. This contributes to the country's appeal as a jurisdiction for wealth management and estate planning.

Confidentiality and Privacy

St Kitts and Nevis maintains strict confidentiality laws regarding financial matters, ensuring the privacy of individuals and businesses. This confidentiality can be particularly advantageous for high-net-worth individuals and corporations seeking to protect their financial privacy and assets from undue scrutiny.

St Kitts Personal Taxes

St. Kitts and Nevis is known for its attractive tax regime, particularly for individuals. The country imposes no personal income tax on worldwide income, making it a desirable destination for those seeking to minimize their tax burdens. 

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St Kitts Corporate Tax

The company tax rate in St. Kitts and Nevis is a flat 33% and is based on a company's net profit. There are also other types of taxes that are related to legal entities. Please see the table below.

*Tax resident companies: companies that are incorporated in St. Kitts and Nevis and managed by local directors;

*Non-resident companies are companies that are registered and managed outside St. Kitts and Nevis.

St Kitts Tax Exempt Company

Entities lacking central management and control, as well as permanent establishments in St. Kitts and Nevis are not liable to taxes in the country. Companies in St. Kitts enjoy tax exemption provided they exclusively transact with non-residents. 

Such companies are exempt from income tax on dividends, interest, and royalties obtained from a qualifying participating interest in another corporate entity. No estate, inheritance, succession, or gift taxes are applicable to any property owned by or securities issued by or in relation to an exempt company.

St Kitts and Nevis Capital Gains Tax

In St. Kitts and Nevis, individuals and corporations can take advantage of a favorable tax environment as the nation does not levy capital gains tax unless the asset is sold within 12 months of its acquisition date. Then a tax rate of 20% will apply. 

This policy underscores the government's commitment to fostering a business-friendly climate and attracting investment. As a result, investors and residents alike can enjoy the benefits of capital appreciation without the burden of additional taxation on their gains.

St Kitts and Nevis Property Tax

Property taxation in St. Kitts and Nevis is governed by the Saint Christopher and Nevis Property Tax Act 2006 (No. 13 of 2006). St. Kitts and Nevis has a property tax system. Property tax is levied on the market value of real estate in St. Kitts and Nevis. Property tax is generally imposed on land and buildings owned by individuals, businesses, or other entities within St. Kitts and Nevis. This includes residential properties, commercial properties, vacant land, and agricultural properties.

The tax rate ranges from 0% to 0.3%, depending on the value of the property and its location. Please refer to the following table. 

There is also a stamp duty of about 6–10% when transferring ownership of the property. Investors who apply for the CBI program through real estate purchases are exempt from paying taxes on the transfer of ownership. Furthermore, property owners constructing new residences enjoy a one-year exemption from property tax, providing a brief respite from tax obligations upon completion.

St Kitts and Nevis VAT

The current VAT rate in St. Kitts and Nevis is 17%. VAT is collected on taxable supplies made to their customers, and businesses are allowed to claim input VAT credits for VAT paid on their business-related purchases.

When selling goods (both retail and wholesale), you must register for VAT.

• At the end of any period of 12 months or less, your total value of taxable supplies exceeds $150,000; or
• At the beginning of any period of 365 calendar days, there are reasonable grounds to expect that the total value of your taxable supplies will exceed $150,000.

When providing services (professionals and those involved in commercial and time-share property for lease), you must register for VAT:

• You render services, and the dollar value of fees charged exceeds $96,000 within a period of 12 months or 365 days at the end of any period of 12 months or fewer months.

There are three rates of VAT, depending on the services and goods provided by the businesses. The rates are:

• Standard: 17%
• Reduced: 10% (hotel accommodation and restaurants)
• Zero: 0%

While most goods and services are subject to the standard VAT rate of 17%, certain supplies may be exempt or subject to a zero rate. Exempt supplies are not subject to VAT, while zero-rated supplies are taxed at a rate of 0%.

Examples of exempt supplies can include certain financial, educational, transportation, insurance, etc. services, whereas zero-rated supplies may include exports of goods and services, depending on the product itself. Such goods as flour, sugar, milk (not condensed, chocolate, cream, or soy), rice (white and brown), oats, and bread are zero-rated.

Other Taxes in St Kitts and Nevis

St. Kitts and Nevis may impose the following taxes:

• Environmental Levy: This tax is levied on certain goods that have an environmental impact, such as plastic bags and Styrofoam containers. The rate of the environmental levy varies depending on the type of goods. The rate is typically expressed as a percentage of the value of the goods.
• Gaming tax: This tax is levied on gambling activities in St. Kitts and Nevis.
• Hotel accommodation tax: This tax is levied on hotel accommodation in St. Kitts and Nevis.
• Excise tax: St. Kitts and Nevis does not levy an excise tax on specific goods such as alcohol, tobacco, or petroleum products compared to other Caribbean countries.

Filing Taxes in St Kitts and Nevis

The tax year in St. Kitts and Nevis runs from January 1 to December 31. The government has implemented a modern and efficient tax system that makes it easy for individuals and businesses to file their taxes online.

In St. Kitts and Nevis, the deadlines for filing tax returns can vary depending on the specific tax type and the taxpayer's circumstances.

Personal Income Tax

• For individuals on a calendar year basis, the deadline for filing personal income tax returns is usually on or before March 31st of the year following the tax year.
• Self-employed individuals may have different filing deadlines, typically within three months after the end of their fiscal year.

Corporate Income Tax

• Companies in St. Kitts and Nevis are required to file their corporate income tax returns within four months after the end of their fiscal year.
• The specific deadline can vary based on the company's fiscal year-end.
• The annual interest rate on overdue payments is 12%. You must pay a 5% penalty plus an additional 1% for each month that you are late in filing your return. 

Value Added Tax (VAT)

• VAT returns in St. Kitts and Nevis are typically required on a monthly or quarterly basis, depending on the taxpayer's turnover threshold.
• The deadline for filing VAT returns and making any VAT payments is usually on or before the 15th day of the month following the reporting period.

Tax Incentives for business in St Kitts and Nevis

In St. Kitts and Nevis, the government provides a range of tax incentives to attract and support businesses, fostering economic growth and development. These incentives are designed to encourage investment, stimulate job creation, and enhance competitiveness in the global market. Here are some key tax incentives available for businesses in St. Kitts and Nevis:

1. Tax Holidays. New businesses established in St. Kitts and Nevis may benefit from a tax holiday period of up to 15 years. During this period, qualifying businesses are exempt from paying certain taxes, including corporate income tax, withholding tax on dividends, interest, and royalties, and import duties on machinery, equipment, and raw materials.
2. Duty-Free Imports. Businesses operating in designated sectors or engaged in specific activities may enjoy duty-free imports of raw materials, machinery, equipment, and other goods necessary for their operations. This incentive helps to reduce production costs and improve the competitiveness of businesses in the global market.
3. Investment Tax Credits. Qualified businesses are eligible to receive investment tax credits, which can offset a portion of their capital expenditures. These tax credits can amount to up to 50% of the capital investment made by the business in approved projects or activities. By reducing the overall cost of investment, this incentive encourages businesses to expand their operations, upgrade technology, and enhance productivity.
4. Export Incentives. Businesses engaged in export-oriented activities may benefit from additional incentives, such as tax rebates, exemptions, or reduced rates on export-related income, profits, or transactions. These incentives aim to promote export-driven growth, attract foreign investment, and diversify the economy by tapping into international markets.
5. Exclusive Economic Zones (EEZs): St. Kitts and Nevis has established special Economic Zones in strategic locations, offering businesses preferential treatment, streamlined procedures, and access to infrastructure and support services. Qualified businesses operating within EEZs may enjoy additional tax incentives, customs benefits, and regulatory concessions to facilitate their growth and expansion.

Overall, these tax incentives create a favorable business environment in St. Kitts and Nevis, attracting domestic and foreign investment, fostering innovation and entrepreneurship, and driving sustainable economic development across various sectors. However, businesses should ensure compliance with relevant regulations and eligibility criteria to fully benefit from these incentives.

St Kitts and Nevis Citizenship by Investment

​​The St. Kitts and Nevis Citizenship by Investment (CBI) program allows foreign nationals to obtain citizenship by investing in the country and enjoying all tax benefits.The program was established in 1984 and is one of the oldest and most reputable CBI programs in the world. 

Here is an overview of the St. Kitts and Nevis CBI program:

Investment Options

The program offers two main investment options for obtaining citizenship:

a. Sustainable Growth Fund (SGF). Applicants can make a non-refundable contribution of at least S250,000 to the SGF, which supports various sectors of the St. Kitts and Nevis economy, including healthcare, education, infrastructure, and tourism.

b. Real Estate Investment. Applicants can invest in designated real estate projects worth at least $400,000, such as luxury resorts, hotels, or villas. The investment must be held for a specified period, typically five years.

Eligibility Requirements

To qualify for the St. Kitts and Nevis CBI program, applicants must meet certain criteria, which may include:

1. Minimum age requirement for the main applicant and dependents.
2. Good character and reputation.
3. No criminal record.
4. Proof of source of funds for the investment.
5. Compliance with health and medical requirements.

Processing and Due Diligence

All applicants undergo a thorough due diligence process, which involves background checks and vetting procedures to ensure the integrity of the program. This process is conducted by the government or authorized agencies.

Benefits of Citizenship

1. Citizenship: Successful applicants and their eligible family members are granted full citizenship of St. Kitts and Nevis, including the right to live, work, and study in the country.
2. Visa-free Travel: St. Kitts and Nevis citizens enjoy visa-free or visa-on-arrival access to many countries worldwide, including the Schengen Area and the United Kingdom.
3. Tax Advantages: St. Kitts and Nevis offers several tax advantages, including no wealth, inheritance, or capital gains taxes.
4. Dual Citizenship: St. Kitts and Nevis permits dual citizenship, allowing individuals to retain their current citizenship while obtaining citizenship through the CBI program.

Application Process

The application process for the St. Kitts and Nevis CBI program involves submitting the necessary documents, forms, and supporting evidence and takes about 3-6 months. The entire process is handled online by Golden Harbors. 

St Kitts Tax Residency

If you are planning to move to St. Kitts and Nevis, you should understand the concept of tax residency. Tax residency is a crucial factor that determines your tax obligations in St. Kitts and Nevis. 

St Kitts Individual Tax Residency Requirements

Tax residency is mainly determined based on the individual's physical presence in the country. Generally, to be considered a tax resident in St. Kitts and Nevis, you typically need to meet one of the following criteria:

• Physical Presence Test. You are physically present in St. Kitts and Nevis for at least 183 days in a calendar year. The days do not need to be consecutive but are cumulative throughout the year.
• Permanent Home Test. You have a permanent home available to you in St. Kitts and Nevis, and you are present there for at least 183 days in a calendar year.
• Economic Ties Test. You have economic ties to St. Kitts and Nevis through employment, business, or other means. 

For companies, tax residency hinges on the central management and control test, which assesses where the highest-level decision making occurs. Holding board meetings within the country and making strategic decisions there often indicate tax residency in the jurisdiction. Legal incorporation outside the country does not preclude tax residency within the jurisdiction if central management and control are located there. 

How to obtain St Kitts Tax Residency?

To become tax residents in St Kitts and Nevis, both individuals and companies must obtain a tax identification number (TIN). For companies, this is a straightforward process, as they receive the TIN immediately upon incorporation. However, for individuals, especially for holders of investment citizenship, the procedure is more involved. Firstly, they must apply for a driver's license in person. Upon successfully obtaining the driver's license, individuals will be issued both the TIN and an authentication letter by the government of St Kitts and Nevis. This letter confirms their tax residency status and serves as official documentation of their TIN.

FAQ about St Kitts Taxes

Is St Kitts a Tax-Free Country?

St. Kitts and Nevis is not a tax-free country. While it does not impose direct personal taxes on personal income, capital gains, or net wealth, it does have other taxes in place. These include income tax, corporate tax, and value-added tax (VAT). So, while it may offer some tax advantages for individuals in certain areas, it is not entirely tax-free.

Is St Kitts a Tax Offshore?

Yes, St. Kitts and Nevis, together forming the Federation, provide a tax-friendly environment for offshore activities. This country, specifically, is known for its favorable formation laws for offshore entities like limited liability companies (LLCs), trusts, and foundations. Additionally, it offers robust offshore banking and insurance services, making it an attractive destination for individuals and businesses seeking to optimize their tax structures and asset protection strategies.

Is it hard to get residency in St Kitts and Nevis?

No, it is not hard to get residency in St. Kitts and Nevis. Obtaining residency in St. Kitts and Nevis can be relatively straightforward, particularly through their Citizenship by Investment program. This program allows individuals and families to acquire citizenship, and thus residency, by making a significant financial investment in the country, typically through real estate purchase or donation to a government fund. The minimum investment threshold is $250,000.

What are the Other Tax-Friendly Countries in the Caribbean?

In addition to St. Kitts and Nevis, several other Caribbean countries offer tax-friendly environments along with citizenship by investment programs. Grenada, Dominica, St. Lucia, and Antigua and Barbuda are among these jurisdictions. These nations provide appealing tax regimes with advantages such as no income tax, capital gains tax, or inheritance tax, making them attractive for individuals and corporations seeking tax efficiency. Moreover, their citizenship by investment programs offer an avenue for individuals to acquire second citizenship and enjoy associated benefits such as visa-free travel to numerous countries and access to investment opportunities.