Expat Tax Residency in Antigua and Barbuda

Antigua and Barbuda is one of a small number of jurisdictions worldwide that imposes no personal income tax on individuals. The government abolished income tax effective April 2016, and residents whether local or foreign-born owe nothing on wages, salaries, dividends, interest, or royalties earned. Capital gains and inheritance are equally untaxed. Residents still pay property tax, the national sales tax known as ABST, and stamp duty on property transactions. Understanding which taxes do apply and how residency is formally established is essential for any expat relocating to or investing in the islands.

For more detail on the broader Antigua and Barbuda country profile, see the Antigua and Barbuda country overview.

Does Antigua and Barbuda tax personal income?

No. According to the Antigua and Barbuda Inland Revenue Department (IRD), personal income tax was set to zero in April 2016 as part of a broad tax reform. The reform covered all employment income as well as self-employed earnings sourced in the country. There is also no capital gains tax, no inheritance tax, no wealth tax, and no gift tax. The IRD confirms this via its published tax-type register at ird.gov.ag. Non-residents who receive dividends, interest, or royalties from Antigua-sourced income do face a withholding tax of 25%, administered by the IRD under the relevant withholding provisions.

How do expats establish tax residency in Antigua and Barbuda?

There are two main routes. First, the standard 183-day physical-presence test: any individual who spends more than 183 days in Antigua and Barbuda during a calendar year is treated as a tax resident. No formal application is required, but residents may obtain a tax-residency certificate from the IRD for use in satisfying foreign tax-authority inquiries. Second, the Permanent Residency Programme, documented at the official Antigua and Barbuda government business portal (antiguabarbuda.com), allows individuals to establish tax residency by maintaining a residential address in-country, spending a minimum of 30 days per year on the islands, demonstrating annual income of at least USD 100,000, and paying a flat annual tax of USD 20,000. Approved applicants receive a Certificate of Residency and a Tax Identification Number from the IRD.

What taxes do residents actually pay?

Residents are subject to three main taxes. Property tax is levied annually under the Property Tax Act 2000 on the assessed market value of land and buildings, with rates ranging from 0.1% for agricultural land to 0.5% for commercial property, administered by the IRD. The Antigua and Barbuda Sales Tax (ABST) applies to most goods and services at a standard rate of 17% following an increase effective January 1, 2024, as announced by the IRD on December 22, 2023 and confirmed by Sovos and VATupdate; the hotel-accommodation sector is taxed at a lower rate. Stamp duty applies on property transfers: sellers pay 7.5% of the sale price and buyers pay 2.5%, per the Caribbean Tax summary for Antigua and Barbuda. Corporate tax (25%) applies to businesses but not to individual residents' personal income.

How does the Citizenship by Investment programme interact with tax residency?

Antigua and Barbuda's Citizenship by Investment (CBI) Programme, established under the Citizenship by Investment Act 2013, grants citizenship and an Antigua and Barbuda passport through qualifying investment routes. However, per the government's CBI Unit, citizenship alone does not confer tax residency. A CBI citizen must separately satisfy either the 183-day physical-presence test or the Permanent Residency Programme requirements described above to be recognised as a tax resident by the IRD. CBI citizenship does carry a mandatory requirement to spend at least five days in Antigua and Barbuda during the first five years, which by itself falls well short of the 183-day residency threshold.

What should US citizens and other expats know about their home-country obligations?

Tax residency in Antigua and Barbuda does not automatically extinguish obligations in a resident's country of origin. US citizens and Green Card holders are subject to US worldwide taxation regardless of where they live, per the Internal Revenue Service (IRS). Even with zero personal income tax in Antigua and Barbuda, US residents abroad must continue filing Form 1040. The Foreign Tax Credit is generally inapplicable here because Antigua and Barbuda levies no personal income tax that could be credited. US persons with Antiguan financial accounts may also face FBAR and Form 8938 reporting requirements. Antigua and Barbuda participates in the OECD Common Reporting Standard (CRS) and the US FATCA Model 1 Intergovernmental Agreement, meaning Antiguan financial institutions report account information to the relevant competent authorities.

This page is for informational purposes only and does not constitute tax or legal guidance. Individual circumstances vary significantly; consult a qualified tax professional familiar with Antigua and Barbuda before making any residency or investment decisions.