Individual taxation overview
Capital gains tax
Investment income tax
Tax residency is determined by the following factors:
- Permanent place of abode which must be in Saint Lucia.
- Physical presence in Saint Lucia:
- At least 183 days in the reporting year;
- Less than 183 days in the reporting year but deemed resident in the year immediately before or after the year in question.
Income is accruable to an individual from all sources directly or indirectly.
Taxable income includes employment and business income, rental income, income from royalties, investment, premiums, fees, IP, etc.
Personal deductions and allowances apply.
|Type of income||Arising in St Lucia||Arising outside St Lucia|
|Residents/ Ordinarily resident||Chargeable at progressive rates, see below|
|Non-ordinarily resident||Chargeable at progressive rates, see below. Income arising outside St Lucia is taxed only when remitted to the country.|
|Non-residents||25% withholding tax||0% for non-remitted income|
Income tax rates are applied as follows:
|Tax band||Tax rates|
|0 to 20,000 XCD||10%|
|10,000 to 20,000 XCD||1,000 XCD is payable on the first 10,000 XCD
15% on the remaining amount
|20,000 to 30,000 XCD||2,500 XCD is payable on the first 20,000 XCD
20% on the remaining amount
|30,000 XCD and above||4,500 XCD is payable on the first 30,000 XCD
30% on the remaining amount
Allowances and deductions
Resident personal allowance is XCD 18,000.
Generally, 2% to 10% on the sale of real estate, debenture, stock, debt or shares.
Residential property tax
0.25% of the open market value.
For 2018 and 2019 residential properties are tax exempt.
Social security contributions
The employee must contribute 5% of their gross salary for retirement, disability and sickness benefits.
The employer matches the contribution paid by the employee.
Maximum amount of monthly contributions for both employee and employer is XCD 5,000 each.
VAT is charged at a standard rate of 12.5% on almost all goods and services imported to and sold in Saint Lucia. A reduced rate 10% applies to the hotel sector and related services. Some goods and services are tax exempt.
Taxes apply to home-produced liquor, beer, cigarettes, etc.