St. Kitts and Nevis Taxation
One of the main attractions of St. Kitts and Nevis for investors is limited taxation – zero wealth, inheritance, gift, foreign income and capital gains tax.
Individuals that do not live on St. Kitts or Nevis are not considered tax residents, so they have no tax obligations there. The only taxes that non-residents might have to pay are stamp duty, if applicable (when buying assets/ real estate on the islands), and withholding tax 15%, if they receive any payments from activities on the islands.
There is a variety of taxes that must be paid by working and non-working residents; however, there are some taxes that apply to workforce only.
No personal income tax.
Сapital gains tax 0%.
VAT: standard rate 17%. Reduced rate 10% for hotels, tour operators and restaurants.
Excise tax applies to tobacco products, alcoholic beverages, petroleum products, etc. Ranges between 5% and 25%.
Property tax: rates depend on the island and type of property.
|0.2% – residential property
0.3% – commercial property
|Building tax (0.156% to 0.2%) and land tax (0.075% to 0.15%) are applied. The lowest rate is levied on residential property.|
Besides, the government offers allowances, benefits and exemptions. Deadline for payment of property tax – 30 June, penalty for non- or late payment – 12% per year on the unpaid taxes.
Stamp duty for various transactions (real estate, leases, mortgages, bill of lading, etc.):
- Transfer of real estate: 5% to 10%;
- Transfer of shares: 2%;
- Mortgages: 1% to 2%;
- Bank loans to aliens: 2.5% to 5%.
Non-citizens that wish to own land must obtain an alien land holding licence for a fee.
Withholding tax 15% is levied on payments made to non-residents, e.g. dividends, interests, rent, leases, commissions, charges for professional services, etc.
Zero personal income tax, so no deductions.
Social Security contributions from chargeable income (up to 6,500 East Caribbean dollars (XCD) per month): social security fund 5% (+5% from employer); Social Services Levy 3.5-12% (+3% from employer); Employment Injury Benefit 0% (1% from employer); Severance Payment Fund 0% (1% from employer).
When providing professional services and when certain conditions apply persons must register for VAT.
Everyone engaged in any business activity must obtain a Business and Occupation Licence, renewable by 31 January each year. Penalty for late renewal – 12% per year.
Unincorporated business tax is levied on gross receipts from the supply of goods and services: 0% to 4%.
Island Enhancement Fund charge is levied on tourism sector businesses: XCD 4 to XCD 13.5 per person or XCD 4 per rented vehicle per day.