Taxation in Antigua & Barbuda
Antigua & Barbuda has developed a tax framework that is deliberately simple and attractive compared to high-tax jurisdictions. The country does not impose personal income tax on worldwide income, and there are no inheritance taxes, capital gains taxes, or net wealth taxes under current legislation. This makes the jurisdiction particularly appealing for internationally mobile individuals who want to secure residency or citizenship while minimizing exposure to additional layers of taxation.
Taxation in Antigua & Barbuda follows a territorial principle. This means that only income sourced within the country is subject to taxation, while foreign income is exempt. The approach differs fundamentally from systems in the United States or Canada, where worldwide income is taxable regardless of where it is earned. For citizens and residents of North America who acquire citizenship in Antigua & Barbuda, this distinction is vital: holding a passport alone does not create global tax liability in Antigua.
The government’s revenue system relies more heavily on indirect taxes such as customs duties, the Antigua & Barbuda Sales Tax (ABST), and service fees rather than high rates of direct taxation. This orientation makes the country competitive in attracting foreign direct investment, tourism development, and offshore business structures. For expatriates, retirees, and investors, the framework offers clarity and predictability, provided they understand the difference between citizenship and tax residency.
Personal taxation for residents and non-residents
Whether or not you are considered a tax resident of Antigua & Barbuda depends primarily on the amount of time you spend in the country. In general, individuals who reside in Antigua & Barbuda for more than 183 days in a given year are treated as tax residents. Non-residents are only liable for taxes on income that has a direct source within the country, such as employment performed locally or business operations carried out on the islands.
Residents may be liable to pay tax on locally sourced income such as wages, salaries, or income derived from Antigua-based businesses. However, the absence of a comprehensive personal income tax regime means that in practice most residents do not face significant personal tax obligations beyond indirect levies. Non-residents, by contrast, only face obligations on specific activities performed in Antigua & Barbuda, and those obligations are limited in scope.
The table below outlines the basic distinction between residency status and the scope of taxation:
| Status | Income subject to taxation | Obligation summary |
| Resident (183+ days) | Locally sourced income such as salaries, business profits, or professional services within Antigua | No tax on worldwide income; report only Antigua-based earnings |
| Non-resident | Income derived exclusively from local activities | Liability restricted to Antigua-source wages, business, or property rents |
Because Antigua & Barbuda does not currently apply a broad personal income tax to residents or non-residents, the effective burden is low. However, individuals must still comply with indirect tax obligations such as ABST on purchases, stamp duties on property transactions, and customs duties on imported goods. For expatriates, it is crucial to distinguish between holding citizenship and acquiring tax residence; only the latter creates substantive obligations in the local system.
Corporate taxation and business environment
Corporate taxation in Antigua & Barbuda operates under a framework intended to support both domestic businesses and international investors. The general corporate income tax rate is set at approximately 25 percent, applied to the net profits of companies operating within the country. However, a wide range of incentives and exemptions are available, particularly in sectors prioritized by the government such as tourism, renewable energy, and international business services.
International Business Corporations (IBCs) enjoy particularly favorable treatment. These entities can be established with simplified incorporation requirements and may benefit from exemptions or reductions in local taxation depending on the structure of their operations. Many IBCs are used for international trading, holding, or service activities, leveraging Antigua’s political stability, English-speaking environment, and access to CARICOM markets.
Another key component of the corporate landscape is the Antigua & Barbuda Sales Tax (ABST), a value-added-type tax levied on goods and services. The standard rate is approximately 15 percent, though certain categories such as tourism and hospitality may qualify for reduced rates. Customs duties also apply to imported goods, and excise taxes are levied on specific items such as alcohol, tobacco, and fuel. For foreign entrepreneurs considering Antigua as a base, the combination of moderate corporate tax, a territorial system, and strategic exemptions makes the country attractive.
Tax advantages for American and Canadian citizens
For citizens of the United States and Canada, the decision to establish ties with Antigua & Barbuda is often motivated by mobility and wealth-planning considerations. However, it is important to understand how the home-country tax regimes interact with Antigua’s territorial system. The United States taxes its citizens on worldwide income regardless of where they live or hold other citizenships. This means that an American with an Antiguan passport must still file a U.S. return annually, report foreign accounts, and comply with FATCA. However, Americans can often use foreign tax credits and the foreign earned income exclusion to reduce double taxation when residing abroad.
Canada, by contrast, bases its tax obligations primarily on residency rather than citizenship. Canadians who acquire Antiguan citizenship but remain Canadian residents will continue to pay Canadian taxes on worldwide income. If they cut residential ties and establish themselves in Antigua, they may cease to be Canadian tax residents and thereby limit obligations to Canadian authorities. Such moves require careful planning to manage departure tax issues and maintain compliance with both jurisdictions’ laws.
In practice, the main advantage for North Americans is that Antigua does not impose additional taxation on foreign income. A Canadian retiree living primarily in Antigua may avoid Canadian taxes if they sever residency ties, while an American living in Antigua can enjoy the local tax advantages while still managing U.S. obligations with the help of credits. For both groups, professional tax planning is essential to maximize the benefits of Antigua’s system without running afoul of home-country rules.
Tax implications for citizenship by investment (CBI) holders
Antigua & Barbuda is one of the few countries where foreign nationals can acquire citizenship through investment without any requirement to establish residence. From a tax perspective, this distinction is critical. Citizenship obtained through the CBI program does not automatically make an investor a tax resident. Unless the individual spends significant time in the country or establishes residence for other reasons, they will not be liable for local taxes.
CBI holders benefit from global mobility, the ability to pass citizenship to descendants, and access to the Caribbean Community (CARICOM). But unless they choose to live in Antigua & Barbuda for more than 183 days per year, they do not assume local tax residency. This makes the passport attractive for businesspeople who value mobility but have no intention of relocating their primary residence.
The table below summarizes the contrast between a CBI holder who does not reside in Antigua & Barbuda and a full resident who does:
| Status | Residency in Antigua & Barbuda | Tax obligation |
| CBI citizen only | No residence, does not spend 183+ days locally | No obligation on worldwide income; no liability unless Antigua-sourced activity occurs |
| CBI citizen + resident | Establishes residence and spends 183+ days annually | Liable for local income tax on Antigua-sourced earnings; still no worldwide taxation |
This framework reassures prospective investors from the United States and Canada that acquiring Antiguan nationality will not create additional tax burdens by itself. Instead, it provides optionality: you can hold the passport for mobility, or you can move to Antigua later and establish residence if lifestyle or retirement plans require it.
Other taxes: property, duties, indirect taxation
While Antigua & Barbuda avoids heavy direct taxes, several indirect taxes and fees form part of the fiscal environment. The most prominent is the Antigua & Barbuda Sales Tax (ABST), applied at a standard rate of 15 percent on most goods and services. Reduced rates are sometimes applied to tourism and hotel services, a critical sector for the national economy. Excise duties apply to alcohol, tobacco, and fuel, while customs duties are levied on many imported goods, reflecting the country’s reliance on imports for everyday consumption.
Property taxation does not exist in the same form as in North America, but property transfers attract stamp duties and registration fees. Buyers and sellers each pay a percentage of the transaction value when real estate changes hands. This structure provides revenue for the government while keeping ongoing property ownership costs low, which is one reason foreign investors find the Antiguan real estate market attractive.
There are also modest annual license fees for certain types of businesses, work permits for foreign employees, and service charges on specific government processes. These are generally predictable and form a small part of the overall cost of living or doing business in the country. Compared to North America or Europe, the total tax burden remains significantly lighter, though indirect taxes do raise the cost of imported consumer goods.
Current tax rates in Antigua & Barbuda
Antigua & Barbuda maintains a relatively low-tax environment compared to North America and Europe, but there are still several direct and indirect taxes that residents and businesses must consider. Below is a summary of the main tax categories and their current rates:
| Tax type | Rate | Notes |
| Corporate income tax | 25% | Applied to net profits of resident companies; incentives available for priority sectors. |
| Personal income tax | 0% | No personal income tax on worldwide or local income; only limited payroll contributions. |
| ABST (sales tax / VAT equivalent) | 15% | Standard rate; reduced 12.5% for hotel and tourism services. |
| Withholding tax on dividends/interest | 10% | Applies to payments to non-residents; exemptions available under specific treaties. |
| Property transfer tax (stamp duty) | 2.5% seller / 10% buyer | Levied on real estate transactions; foreigners may require a license to purchase property. |
| Social security contributions | Employer 8%, Employee 5% | Based on wages; mandatory for employees working in Antigua & Barbuda. |
| Excise duties | Varies (e.g., alcohol 40%, tobacco 30%) | Levied on specific goods such as fuel, alcohol, and tobacco products. |
This table highlights that while Antigua & Barbuda offers zero personal income tax, companies and consumers encounter standard obligations through corporate tax, ABST, and property-related fees. For expatriates, the absence of global taxation is the primary advantage, but understanding local indirect taxes remains essential when budgeting for relocation or business setup.
Maintaining compliance and practical tips
For expatriates, investors, and new citizens, staying compliant with Antiguan tax rules requires clear planning and organized documentation. Even though the system is light, obligations exist and penalties apply if deadlines are missed. Individuals who become tax residents should maintain records of local income, business accounts, and property transactions to ensure accurate declarations. Companies must file annual returns and maintain proper corporate books even if they benefit from exemptions or incentives.
North American citizens must also align Antiguan compliance with home-country rules. Americans, for example, must file annual IRS returns and report foreign financial accounts if thresholds are exceeded, even if no U.S. tax is ultimately due. Canadians must confirm whether they remain residents under Canadian law; if so, they should declare global income in Canada even while enjoying Antiguan residency. Coordinating filings between jurisdictions prevents conflicts and avoids double taxation or penalties for non-disclosure.
Practical tips for compliance include keeping a secure digital archive of all official documents, ensuring translations and notarizations are up to standard, and consulting both local accountants and cross-border specialists at least once per year. It is also wise to review official government circulars annually, as tax policy can evolve. While Antigua & Barbuda is committed to remaining a competitive low-tax jurisdiction, detailed rules on ABST, duties, and corporate incentives are periodically updated. A proactive compliance routine ensures you capture the full benefits of the system without unnecessary risk.