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.
Will I face any kind of taxation as an Antiguan citizen after participating in the CBI program?
I am interested in the citizenship-by-investment program but have question about taxes. I plan to invest in the country but not live there permanently. Will I face any taxes f I do the property investment option when abroad? What about if I do the National Development Fund option? Is there a difference?
Antigua levies taxes based on residency, not citizenship. Having said that, Antigua has no personal income tax, no capital gains tax and no tax on worldwide income for residents. There are taxes on business profits if you establish a company or start an unincorporated business here. There are also withholding taxes on certain payments to non-residents. If you own a property in Antigua but do not live here, you must appoint a property management agent to account for and pay any taxes that may be payable on the income from your property. Any amounts remitted overseas to you by the property management agent will be subject to a withholding tax.
You will not be liable to pay taxes in Antigua as a new citizen as long as you are non-resident. If you apply to the citizenship-by-investment program via the donation to the government fund, there are no taxes associated with the donation. If you apply via a property investment, there will be some taxes such as stamp duty to pay upon the purchase of the property and there is a withholding tax on rental income as a non-resident. We recommend taking formal tax advice via one of the accounting firms here in Antigua.