St Kitts and Nevis taxes: ultimate investor guide

Who pays taxes in St Kitts and Nevis?

Not everyone with St Kitts and Nevis citizenship needs to pay taxes in this country. It depends on whether they are a St Nevis and Kitts tax resident.

The tax resident is a person who lives in the country for more than 183 days a year, has a registered address and performs social, economic, cultural, and political activities in the country. A company is a tax resident if registered in St Kitts and Nevis or managed from there. 

The non-tax resident is an individual who lives in another country even if they have St Kitts and Nevis citizenship. Companies are called non-tax residents if they are not registered or managed in St Kitts and Nevis. However, if it sells goods or offers services in the country, it is still required to pay taxes on the income earned in St Kitts and Nevis.

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St Kitts and Nevis taxes for individuals

There are no income and inheritance taxes in St Kitts and Nevis for individuals, whether they are tax or non-tax residents of the country. 

Withholding taxes are paid by non-tax residents of St Kitts and Nevis. The tax rate is fixed — 15% of the payments. Tax residents don’t pay withholding taxes.  

Social contributions are taxes withdrawn from the salary of the person. Their rate is 5% for both tax and non-tax residents. 

Stamp Duty is levied on the transfer of real property and ranges from 6% to 10%.  

Unincorporated Business Tax is paid by a person or a group of persons who carry on business in St Kitts and Nevis and are nor registered under the Companies Act. The tax is 4% of sales of goods and services after granted exemption. 

Taxes paid by individuals in St Kitts and Nevis

Taxes for legal entities in Saint Kitts and Nevis

The corporate tax rate in St Kitts and Nevis is 33% and is applied to the company’s net profit.

St Kitts and Nevis tax residents pay corporate taxes on their global income, while non‑tax residents pay only on the income earned in St Kitts and Nevis. 

The corporate tax is paid at the end of the fiscal year. The due date is 3.5 months after it. That means if your fiscal year ends on December 31st, you need to file an income tax return before April 15th of the following year. 

You are subject to interest and penalties if you don't pay taxes before the due date. Interest on the late payment is 12% per year. If you file your return late, you need to pay a 5% penalty and an additional 1% for each month you don't file. 

VAT. The standard VAT in St Kitts and Nevis is 17%. It is included in the prices of products. For services like hotels and restaurants, VAT is 10%.

There are also 0% taxes on goods like flour, sugar, milk, white and brown rice, oats, and bread. 

Some items are tax-exempt, for example: 

• insurance on vehicles, health, life, and property;
• transportation;
• education services, including tuition fees; 
• interest on loans;
• electricity;
• water for domestic use;
• medical services. 

There is a difference between 0% VAT goods and exempt goods. If you sell items that are taxed at 0%, you can apply for a VAT refund, which is impossible if the items are not taxed. 

If you are VAT-registered, you must file a monthly VAT return before the 15th of the following month. 

Withholding tax is not paid by tax residents of St Kitts and Nevis as they are counted in the company’s profit. Non-tax residents need to pay taxes on dividends, royalties and interests at a 15% rate. 

Social contributions are 6% of the salary. 

Taxes paid by legal entities in St Kitts and Nevis

St Kitts property tax

Purchase of property. Investors participating in the citizenship by investment program don’t need to pay taxes to purchase a property. Others need a licence for owning a property that costs 10% of the object’s value.

Ownership of property. The tax rate on the property depends on its use and location. 

Agricultural and institutional properties are exempt from taxes on St Kitts island. However, it is not possible to just stop paying taxes on them. First, these properties must be certified by the Director of Agriculture or qualify under the Education Act.

There is also an exemption on the construction of new properties for 1 year. 

Tax rates on different types of properties

It must be paid annually before June 30th. Every property owner receives a bill by the end of May each year. Not receiving it is not an excuse to not pay taxes. 

If you don’t pay your property tax by the due date, an interest of 1% per month will be added to the total amount due.

Selling of the property. If you sell a property, you need to pay a stamp duty of about 6—10%. The tax rate depends on several factors, for example, the location. There is also no capital gain tax.

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Double taxation avoidance treaties

Double taxation avoidance agreements protect companies and individuals from paying taxes at full rates in two or more countries. 

St Kitts and Nevis has double taxation avoidance agreements with the countries of the Caribbean Community, or CARICOM: Antigua, Belize, Dominica, Grenada, Guyana, Jamaica, Saint Lucia, St. Vincent, Trinidad & Tobago. The treaties are also signed with countries like Denmark, Norway, Sweden, San Marino, and the UK.

Benefits of St Kitts and Nevis tax system

No income tax for individuals. St Kitts and Nevis and Antigua and Barbuda are the only Caribbean countries that don’t have income taxes for individuals. Countries like Grenada, St Lucia and Dominica tax incomes at 10—35% rates depending on the earnings. 

Decreased VAT for some spheres. The standard VAT is 17%, while the tourist sector is taxed at a 10% rate. 

No VAT on some goods and services. There is a 0% rate on goods like flour, rice, sugar, milk, oats and bread. Some goods and services are also exempt from VAT altogether. That includes insurance, water supply, electricity, educational services, and most medical services.

Low property taxes. Property tax depends on the location and the type of property. For example, residential buildings on Nevis island are taxed at a 0.156% rate, and agricultural buildings and lands on St Kitts island are exempt from property tax at all. 

How to become a tax resident of St Kitts and Nevis

To become a tax resident of St Kitts and Nevis, one needs to obtain the country’s citizenship. The easiest way is to invest in the economy — then the whole process will take 4—6 months. 

There are four investment options: 

• non-refundable contribution — $250,000+;
• real estate purchase — $325,000+.
• Public Benefit Investment option: Prime Creative Arts Centre — $250,000+;
• Public Benefit Investment option: National Housing Corporation — $250,000+.

An investor may buy a share in a government-approved project for $325,000 or a private house for $600,000. Also, the real estate investment option implies a state fee of $25,000+.The purchased property can be sold after 5 years.  

To participate in the program, an investor needs to be over 18 years old, have no criminal records or prosecutions, no serious illnesses and with legal income that they can prove. 

The investor also can add to the application their close family members. That includes a spouse of the opposite sex with no criminal records, children under 25 years old and parents over 55 years old who are fully dependent on the investor. 

Final thoughts on St Kitts and Nevis taxes

1. Investors can obtain St Kitts and Nevis citizenship by contributing to a public fund or development projects or by purchasing real estate. The minimum investment is $250,000.
2. Tax residents pay withholding tax, social contributions, stamp duty, and unincorporated business tax, while non-residents are mainly taxed on certain income sourced in St Kitts and Nevis. Tax residency occurs when one lives in the country for more than 183 days a year.
3. Companies pay 33% corporate tax, with tax residents taxed on worldwide income and non-residents taxed only on income earned in the country.
4. The standard VAT rate is 17%, while hotels and restaurants are taxed at 10%, and some essential goods and services are zero-rated or exempt.
5. Property taxes in St Kitts and Nevis are relatively low, with rates depending on the property type, use, and location, while stamp duty applies when property is sold.
6. Investors can obtain St Kitts and Nevis citizenship by contributing to a public fund or development projects or by purchasing real estate. The minimum investment is $250,000.

Frequently asked questions