Capital gains tax in Antigua and Barbuda

Antigua and Barbuda is one of the few jurisdictions worldwide that imposes neither capital gains tax nor personal income tax. The government abolished personal income tax effective April 2016, and no legislation has reintroduced it since. Gains from selling shares, property, or other assets held by individuals are not subject to any separate capital gains charge. Alongside the absence of CGT and income tax, there is no inheritance tax, no wealth tax, and no gift tax. What the government does collect is a consumption tax, a corporate income tax on company profits, an annual property levy, and stamp duty on real property transfers.

For the full Antigua and Barbuda country profile, see the Antigua and Barbuda country overview.

Does Antigua and Barbuda have a capital gains tax?

No. The Antigua and Barbuda Inland Revenue Department (IRD) administers five tax types: the Antigua and Barbuda Sales Tax (ABST), the Unincorporated Business Tax (UBT), Property Tax, Corporation Tax, and Entertainment Tax. A capital gains tax is not among them. Individuals may sell shares, land, investment property, or other assets without owing any Antiguan tax on the gain realised. The same absence extends to foreign-held assets: an Antiguan resident who sells overseas securities or real estate owes nothing to the IRD on that gain, though they may still owe tax to the jurisdiction where the asset is located or, in the case of US citizens and Green Card holders, to the Internal Revenue Service under US worldwide taxation rules.

What happened to personal income tax in Antigua and Barbuda?

Antigua and Barbuda abolished personal income tax in April 2016 as part of a national tax-reform package. Before 2016, individuals paid income tax on employment and self-employment income. Since abolition, wages, salaries, dividends received by residents, interest, and royalties earned in the country are not taxed at the individual level. The IRD confirms the current position: there is no personal income tax rate to apply. Non-residents who receive dividends, interest, or royalties sourced in Antigua and Barbuda do face a 25% withholding tax administered by the IRD, but that is distinct from a personal income tax on residents.

What taxes do apply to businesses and property owners?

The Antigua and Barbuda tax system imposes four categories of tax that residents, businesses, and property owners routinely encounter.

Corporate income tax at 25% applies to the net profits of resident companies. Preferential rates apply in specific sectors: commercial banks qualifying under mortgage-lending conditions pay 22.5%, and companies in the insurance, oil, and telecommunications industries pay 10%. International Business Corporations earning income solely outside Antigua and Barbuda may qualify for a long-term exemption from corporation tax under IBC legislation.

The Antigua and Barbuda Sales Tax (ABST) functions as a value-added tax on the supply of goods and services. The standard rate increased from 15% to 17% effective January 1, 2024, following an announcement by the IRD on December 22, 2023. Hotel and accommodation services are taxed at a reduced rate. Zero-rated supplies include most basic food items, exports, new residential construction, and residential electricity and water. Businesses with annual taxable turnover exceeding XCD 300,000 (approximately USD 111,000) must register with the IRD and remit ABST monthly.

Property tax is levied annually on the assessed market value of land and buildings under the Property Tax Act 2000, as amended. Rates range from 0.10% for agricultural land to 0.50% for commercial buildings. Residential buildings are taxed at 0.30% of assessed value, and residential land at 0.20%. Owners of new dwelling houses are exempt for the first two years, and there is a 5% rebate for timely payment.

Stamp duty applies on real property transfers. Sellers pay 7.5% of the higher of the sale consideration or the assessed value. Buyers pay 2.5%. Non-citizen purchasers must also obtain an Alien Landholding Licence, the fee for which is typically 5% of the property value, and non-citizen sellers face an additional 5% land value appreciation charge. Share transfers are also subject to stamp duty: sellers pay 5% and buyers pay 2.5% of market or book value, whichever is higher.

The Unincorporated Business Tax (UBT) applies to sole traders and partnerships in place of a personal income tax on business profits. Rates slide from 0% to a maximum of 25% of gross income less certain allowable deductions, and returns and payments are due quarterly rather than annually.

What is the role of Citizenship by Investment in Antigua and Barbuda?

Antigua and Barbuda's Citizenship by Investment (CBI) Programme, established under the Citizenship by Investment Act 2013, allows qualifying individuals to obtain an Antiguan passport through investment in the National Development Fund, approved real estate, or business enterprise routes. The programme is administered by the CBI Unit under the prime minister's office. The absence of personal income tax and capital gains tax is frequently cited as one of the advantages of Antigua and Barbuda tax residency, and it can make the jurisdiction attractive relative to high-tax countries for individuals who establish genuine residence.

However, CBI citizenship alone does not automatically create tax residency in Antigua and Barbuda. A CBI citizen who does not physically reside in the country would still be subject to tax in their country of habitual residence. US citizens and Green Card holders remain subject to US worldwide taxation regardless of any other citizenship they hold or where they live. Such individuals may still owe US tax on capital gains even though Antigua and Barbuda itself imposes no charge.

What should residents know about foreign-source gains?

An Antiguan tax resident who realises a gain on assets held outside Antigua and Barbuda owes nothing to the Antiguan IRD, because Antigua and Barbuda does not impose a capital gains tax or a worldwide income tax on individuals. The source jurisdiction may, however, impose a withholding tax or capital gains tax of its own. Residents holding assets in multiple countries are well served by obtaining advice from a qualified tax professional in each relevant jurisdiction, as treaty coverage and source-country rules vary considerably. Antigua and Barbuda participates in the OECD Common Reporting Standard (CRS) and has signed a FATCA Model 1 Intergovernmental Agreement with the United States, meaning Antiguan financial institutions report account information to the competent authorities of participating countries.

See the Antigua and Barbuda country overview for practitioners experienced in cross-border filings. For complex multi-jurisdictional situations, consult a qualified tax professional before making any investment or residency decisions.