How to Establish Antigua and Barbuda Tax Residency

Antigua and Barbuda is more than just a postcard-perfect Caribbean getaway; it’s also a smart choice for those looking to optimise their tax strategy. 

With personal income tax rates that can be as low as zero, this island nation offers an incredible opportunity to lower your taxable income legally and efficiently.

However, we need to make one thing clear: despite what some might think, Antigua and Barbuda isn’t a ‘tax haven’ in the traditional sense. 

The Antiguan tax system is simply well-regulated and designed to offer benefits without the red flags or reputational risks often tied to so-called tax havens.

However, when it comes to establishing tax residency in Antigua and Barbuda, things can quickly get complicated, or at least confusing.

Between understanding the legal requirements, navigating local regulations and choosing the best path for your financial goals, you’re going to need help, and Nomad Capitalist has the expertise you need.

We’ve put together this comprehensive guide to tax residency in Antigua and Barbuda. It includes how to become a tax resident in Antigua and Barbuda and investigates how to achieve tax reduction thanks to the favourable Antigua and Barbuda tax regime.

With so many choices and so little time, we understand how difficult choosing the right offshore jurisdiction can be, but as a Nomad Capitalist client, we can help make your choices easier.

And with our comprehensive Action Plan, we’ll not only simplify the process but also help you create a strategy that aligns perfectly with your financial vision. It’s time to take control of your tax future.

Are you ready?

Antigua and Barbuda Country Overview

Antigua and Barbuda are a pair of islands in the Eastern Caribbean Sea where tropical beauty meets rich culture and modern opportunities. 

Tucked away in the Lesser Antilles, this island nation boasts 365 beaches – one for every day of the year – offering powdery sands and crystal-clear waters that attract visitors and investors alike.

While Britain’s King Charles III serves as the formal head of state, the country has a homegrown parliamentary structure with two legislative houses – the Senate and the House of Representatives – representing its sovereignty.

Antigua and Barbuda became independent from Britain in 1981. Soon afterwards, the country joined the Commonwealth and the United Nations and also became a member of the Organisation of Eastern Caribbean States along with fellow Caribbean countries such as Anguilla, Dominica and Saint Kitts and Nevis.

But what truly sets Antigua and Barbuda apart is its irresistible energy of laid-back Caribbean charm and forward-thinking appeal. 

From festivals like Carnival to opportunities for offshore tax residency and investment, life here is as exciting as it is advantageous.

The main benefits of moving here include:

Politically stable country with strong international ties to the Commonwealth and the United Nations

• Zero personal income tax
• No taxes on wealth, inheritance or capital gains
• Low-barrier citizenship-by-investment program
• Access to 142 countries with Antiguan passport (either without a visa, through a visa on arrival or via an eTA) if you do apply for citizenship
• Possibility of dual citizenship
• Politically stable country with strong international ties to the Commonwealth and the United Nations.

Antigua and Barbuda – Climate

Arid Antigua is not much like the other Leeward Islands due to being predominantly flat and forest-free. A vacation destination all year round, the island experiences winter lows of 25°C ( 77°F) and summer highs of 32°C (90°F). 

Antigua’s Galleon Beach is just one of dozens of great spots to soak up the sunshine.

Located 25 miles (40.25 km) north of Antigua, Barbuda is an even drier place. This coral island features only one settlement, Codrington, which is situated on a lagoon. 

Notably, there is a complete absence of water features inland, but the climate closely resembles that of Antigua. 

Antigua and Barbuda – Economy

In the past, Antigua and Barbuda’s main source of economic prosperity came from agriculture, specifically the cultivation of sugar cane. However, nowadays, tourism and foreign investments are the dominant forces driving the economy. 

This is evident in how well the country’s economy grew by 8.5% in 2022. 

Furthermore, Antigua and Barbuda have established themselves as one of the leading financial powerhouses in the Caribbean region.

When operating a business or residing in Antigua and Barbuda, it’s important to be aware of the local currency landscape. The official currency is the Eastern Caribbean dollar (XCD), pegged at a fixed rate of 2.70 XCD to US$1. 

The fixed exchange rate provides stability and predictability for international transactions, a key advantage for businesses and investors.

Notably, Antigua and Barbuda is also transitioning to a more sustainable green economy with less reliance on fossil fuels. 

Benefits of Antigua and Barbuda Tax Residency

Antigua and Barbuda offers numerous tax benefits. 

For starters, there is no personal income tax, capital gains or inheritance tax, as well as no wealth tax. However, gifts may be subject to transfer tax. 

Another tax benefit is that there are no Controlled Foreign Corporation rules. As such, the ownership of an offshore company by a resident of the country does not affect the company’s tax status unless it is managed and controlled from within Antigua and Barbuda.

How to Establish Tax Residency in Antigua and Barbuda

To enjoy the tax benefits of Antigua and Barbuda, you will need to become a tax resident, which you can do in one of two ways. 

Firstly, as Antigua and Barbuda adheres to the standard 183-day rule, you automatically become a tax resident if you stay more than 183 days in the country.

The second method, particularly appealing to perpetual travellers, involves applying for permanent residency. 

Notably, this investment program’s definition of permanent residency requires a mere 30 days per year in Antigua and Barbuda. Besides that, you will have to pay a flat tax of US$20,000 per annum. 

You will also need to gather and provide the following documents: 

• A copy of your birth certificate
• A copy of the primary page of your passport
• Two passport-sized photographs
• A copy of your marriage certificate
• The original police report from the country where you have lived for the past two years
• Bank reference and account statement showing a minimum annual income of US$100,000
• Two testimonials from persons who have known you for a number of years (preferably over five)
• Medical report from a general physician, ensuring that the applicant has a clean bill of health (no major communicable diseases, etc.)
• Copy of your certificate of naturalisation (if applicable)
• Lease or title to property of residential accommodation in Antigua and Barbuda.

To establish tax residency, you must register with the Inland Revenue Department (IRD), the government’s revenue collection agency, which operates under the Ministry of Finance and Corporate Governance. The IRD will then issue you a six-digit Tax Identification Number (TIN). 

As elsewhere, Antigua and Barbuda tax residents must file tax returns and pay taxes punctually. Section 49 of the 2018 Tax Administration and Procedure Act stipulates the triggering of a debt if a tax payment has not been made within 30 days of the due date.

Antigua and Barbuda International Business Corporations

An Antigua and Barbuda IBC is a tax-exempt company requiring only one shareholder and one director, which can be the same natural person or legal entity from any country. Consequently, foreigners may wholly own an IBC. 

Furthermore, this type of company has a 50-year tax exemption, during which the company pays no taxes on most forms of income, dividends, interest and royalties paid by and to foreigners.

Although filing audited accounts or annual returns with the authorities is not mandatory, companies must maintain comprehensive financial records accurately reflecting their financial position. 

In terms of restrictions, Antigua and Barbuda IBCs need to keep the following in mind: 

• They cannot offer their shares for sale to the public.
• They cannot trade within Antigua and Barbuda or own real estate there. 
• They cannot undertake the business of banking, insurance, assurance, reinsurance, fund management, collective investment schemes, trust management, trusteeship, the rendering of investment advice, or any other activity that would suggest an association with the banking or insurance industries. 

Antigua and Barbuda Sales Tax Rates

ABST, or Antigua and Barbuda sales tax, is a form of corporate tax that is calculated based on the selling price of goods and services, which includes both the cost price and markup. It is essentially a value added tax (VAT). 

The standard rate for this VAT is 15%, although tourist businesses have a special rate of 14%. Additionally, certain items, such as financial services, medical services, prescription medicines, educational services and local transportation, are not subject to this corporate tax.

You must register to pay Antigua and Barbuda sales tax if:

• You have an annual turnover of US$300,000 XCD or more in taxable income
• You are a professional such as a lawyer, solicitor, accountant, auditor, architect, surveyor or engineer.

Property Taxes in Antigua and Barbuda

For those considering real estate investment or establishing residency in Antigua and Barbuda, understanding the property tax system is necessary. 

Property taxes are levied annually based on the site value of the property and how it is used. Here’s a breakdown of the tax rates:

• Land classified as other property: 0.40%.
• Agricultural land: 0.10%
• Residential land: 0.20%
• Residential building: 0.30%
• Building classified as other property: 0.50%

Antigua and Barbuda Tax Residency: FAQs

Go Where You’re Treated Best

The lack of personal income tax in Antigua and Barbuda, plus the fact there is no capital gains tax to pay on your worldwide income, makes it an attractive tax regime.

That said, we always recommend shopping around to find the best solution for your exact needs. 

As this can be extremely time-consuming, not to mention confusing, our company exists precisely to help speed up the process and ensure you make the best decision. Talk to us about becoming a Nomad Capitalist client today.