Individuals and companies can relocate to tax-friendly Caribbean countries. There are no capital gains or inheritance taxes there. Some states do not levy income or property taxes on their residents, which places them among the best countries for tax residency.
Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, and St Lucia offer citizenship through investment programs. After obtaining citizenship, an investor can move to these countries or relocate their company to optimise taxes.
In this article, we explore the tax regimes in Caribbean countries with citizenship programs for investors.
There is no completely tax-free country in the Caribbean. Types of taxes and tax rates vary by country but also depend on whether a person or a company is a tax resident of a Caribbean country.
A tax resident is an individual who lives in the country for more than 183 days a year.
In this case, obtaining a visa to one of these countries is not enough: the person in question also needs to get a residence permit, permanent residence or citizenship. One of the fastest ways is to obtain citizenship by investment.
A company can also be a tax resident if registered, managed or controlled in the chosen country.
Non-residents are only obliged to pay taxes in a Caribbean country if they have a source of income there.
Antigua and Barbuda and St Kitts and Nevis are tax-free countries, regardless of whether an individual is a tax resident of those states.
Other Caribbean tax rates are calculated progressively, depending on the income amount.
St Lucia has five rates:
Grenada has only two rates: 10% for the first EC$24,000 and 28% for the income over EC$24,000.
Dominica’s tax rates also depend on the income amount:
St Lucia and Grenada only tax income earned in the country. By contrast, Dominica tax residents are obliged to pay taxes on their global income. Non-residents pay taxes only on income earned in Dominica.
| Country | Tax rates | Tax base |
| Antigua and Barbuda | No tax | Income isn’t taxed |
| St Kitts and Nevis | No tax | Income isn’t taxed |
| St Lucia | 0% to 30% | Labour, business, and rental income if earned in St Lucia |
| Grenada | 10% or 28% | Salaries and business income earned in Grenada |
| Dominica | 15% to 35% | Labour, business, and rental income: global for residents, local for non-residents |
Tax residents do not pay any dividends, interest, and royalties taxes in any Caribbean country, except for St Lucia, where the investor would have to pay a 10% withholding tax on interest and royalty.
Non-residents pay withholding taxes on dividends, interest, and royalties at the source.
However, non-residents pay a 15% tax on dividends in Grenada. In St Lucia, interest and royalties are taxed, depending on the tax residency: 15% for tax residents of other CARICOM countries and 25% for others.
| Country | For tax residents | For non-residents |
| Dominica | 0% | 15% |
| St Kitts and Nevis | 0% | 15% |
| Grenada | 0% | 0% — interest and royalties 15% — dividends |
| Antigua and Barbuda | 0% | 25% |
| St Lucia | 0% — dividends 10% — interest and royalties | 0% — dividends 15% or 25% — interest and royalties |
Residents and non-residents alike pay social contributions from the wages received from a source in the country.
The rate is the same for both categories, ranging between 5 and 6%, depending on local laws. The funds go to support healthcare and education in the country.
There are no inheritance or capital taxes in the Caribbean.
The corporate tax rates for companies in the Caribbean countries are the following:
Resident companies pay a corporate tax on their net profit in the country and abroad. St Lucia is an exception, as its resident legal entities pay taxes only on the income received in the country.
Non-resident companies are taxed only on the net income they receive in the country at the same rate as the residents.
Companies that are residents of the Caribbean countries do not pay taxes on interest, dividends, and royalties at source. The only exception is St Lucia which taxes resident companies on interest and royalties at 10%.
Non-resident companies pay withholding tax on dividends, interest, and royalties. The tax rates vary between 15 and 25%.
St Lucia is unique as non-resident companies do not pay dividend withholding tax. However, they pay 15% on interest and royalties if they are tax residents in other CARICOM countries and 25% if they are tax residents in other states.
| Country | For tax residents | For non-residents |
| Dominica | 0% | 15% |
| Grenada | 0% | 15% |
| St Kitts and Nevis | 0% | 15% |
| Antigua and Barbuda | 0% | 25% |
| St Lucia | 0% — dividends 10% — interest and royalties | 0% — dividends 15% or 25% — interest and royalties |
The companies selling goods and services in the Caribbean countries pay the value-added tax.
The standard tax rate is 12.5 to 17%. Hotel and restaurant services tend to be taxed below the standard rate, while some goods and services are not taxed at all.
Zero VAT applies to the following products and services in the Caribbean countries:
| Country | Standard rate | Reduced or special rate |
| St Lucia | 12.5% | 10% — for hotel accommodation |
| Dominica | 15% | 10% — for hotels and diving companies |
| Grenada | 15% | 10% — for hotels and diving companies 20% — for mobile operators |
| Antigua and Barbuda | 15% | 14% — for hotels and restaurants |
| St Kitts and Nevis | 17% | 10% — for hotels and restaurants |
Taxed income. Besides the rates, each country additionally sets a different minimal income on which the VAT is levied:
In the Caribbean countries, taxes can be related to buying, owning, and selling property. In some cases, different rules apply to individuals and companies, residents and non-residents, and citizens and non-citizens of a particular country.
Property buyers, whether individuals or companies, usually pay taxes at the same rates. The payable taxes include transfer tax and stamp duty.
In Grenada and St Kitts and Nevis, a foreigner pays 10% of the property value to obtain a licence to own land in the country. However, the applicants of the citizenship by investment program are exempt from this additional requirement.
| Country | Transfer tax | Stamp duty |
| St Kitts and Nevis | 0% | 0% |
| Antigua and Barbuda | 0% | 2.5% |
| St Lucia | 2% | 2% |
| Dominica | 6% | 4% |
| Grenada | 0% for individuals 5% for resident companies 15% for non-resident companies | 0% for individuals 1% for companies |
Property ownership tax rates vary between 0.1 to 0.5%, depending on the property type:
Tax rates for property sales can vary between 2.5 and 15%, depending on the property type and the seller's status.
In St Lucia, the tax rate also changes depending on the property's value at a progressive scale.
| Country | Property tax | Stamp duty |
| St Kitts and Nevis | 0% | 6 to 10% |
| Antigua and Barbuda | 0% | 7.5% |
| St Lucia | 2.5 to 5% for citizens 10% for non-citizens | 0% |
| Grenada | 5% for citizens 15% for non-citizens | 0% |
| Dominica | 6% | 2.5% |
An easy way to spend at least 183 years per year in the country and become a tax resident is to obtain citizenship by investment.
Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, and St Lucia offer such programs with two to six months processing time.
The minimum non-refundable contribution is $100,000 for Antigua and Barbuda, Dominica and St Lucia, and $150,000 for Grenada and St Kitts and Nevis.
A popular option is investing in a state-approved property project in the country. The investor needs to acquire shares or a whole property for a minimum of:
Yes, Caribbean states can be viewed as tax haven countries. There are no inheritance, wealth or capital taxes on individuals, while some countries do not levy taxes on personal income.
Antigua and Barbuda and St Kitts and Nevis are the countries with no income tax for individuals. There are also no taxes for property buyers or sellers who only have to pay stamp duty. Other countries may offer lower rates on other taxes, however.
Individuals and companies pay taxes in the Caribbean countries.
Tax regimes may differ for residents and non-residents of the countries. To become a resident, a person needs to live in the country for more than 183 days a year.
Individuals’ main taxes are income tax, tax on dividends, interest and royalty, and social contribution. Some of these countries have the lowest income tax rates: in Antigua and Barbuda and St Kitts and Nevis, there’s no income tax at all. In other countries, personal income is taxed at a progressive scale.
Corporate tax is the main tax all resident companies pay in the Caribbean countries. Taxes on dividends, interest and royalty, as well as VAT, also apply to companies in most cases.
There are taxes paid for buying and selling property, as well as owning it. Buyers and sellers will also pay stamp duty.
There are a few exceptions. In St Kitts and Nevis and Grenada, no taxes are imposed on individuals buying real estate, while they only pay stamp duty in Antigua and Barbuda. In Dominica, there are no taxes for property owners.
Non-residents usually pay taxes only on income received from sources within the Caribbean country. Tax residents may be taxed differently, depending on the country and the type of income.
