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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.

Non-residents

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.

Residence

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.

All residents

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.

St. Kitts Nevis
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.

Working residents

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.

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