Antigua does not levy tax based on citizenship. Should you become a tax resident of Antigua, then there are taxes on business profits only. For residents there is no personal income tax, no capital gains tax and no inheritance tax. Furthermore, residents are not taxed on worldwide income. This situation applies whether you follow the real estate or the NDF investment option.
Will I face any kind of added taxation once I become an Antiguan citizen through the CBI program?
I am interested in the citizenship-by-investment program but have a question about taxes. Will I face any if I do the property investment option? What about if I do the National Development Fund option?
There is no personal income tax in Antigua, nor are there taxes on worldwide income for Antiguan citizens. However, depending on where the funds are sent to from Antigua, there may be local taxes applicable. Most property owners keep their funds in an Antiguan or offshore bank in Antigua.
You will not be liable for tax as an economic citizen unless you become a resident of Antigua and Barbuda. Assuming you make a successful citizenship application and become a citizen of Antigua and Barbuda, you will then be a non-resident citizen. Thereafter, in order to be considered as resident in Antigua versus your home country, you are required to reside in Antigua for a minimum of 180 days per year. If you are considering shifting your residency away from your home country for tax reasons, we recommend to all our clients that they take formal advice from one of the accounting firms in Antigua, as well as in your home country, so you can clearly understand the requirements, benefits and any disadvantages, depending on your personal circumstances.
Obtaining citizenship through the C.I.P. program will not make you a taxpayer in Antigua, unless you become a permanent resident here. However, there are certain benefits of becoming a tax resident in Antigua. The island imposes no personal income tax, no worldwide income tax, no inheritance tax, as well as no capital gains tax. Making a donation to the National Development Fund in order to qualify for citizenship in Antigua and Barbuda will not result in any tax payments. Investment into property will require the applicant to pay the taxes associated with the purchase, such as the stamp duty.