Tax Incentives for Expatriates and Digital Nomads in Antigua and Barbuda
Antigua and Barbuda, a Caribbean paradise, welcomes expatriates and digital nomads with open arms, offering a range of tax incentives to make their relocation and remote work endeavors more financially rewarding.
Eligibility Criteria
To qualify for these tax breaks, individuals must meet specific criteria:
- Expatriates: Individuals who are not citizens or permanent residents of Antigua and Barbuda and have established residency in the country for at least 183 days in a calendar year.
- Digital Nomads: Individuals who work remotely for companies outside of Antigua and Barbuda and have established residency in the country for at least 90 days in a calendar year.
Types of Tax Breaks
Antigua and Barbuda offers several tax breaks tailored to expatriates and digital nomads:
- Personal Income Tax Exemption: Expatriates and digital nomads are exempt from paying personal income tax on their foreign-sourced income. This exemption applies to all types of income, including employment income, business income, and investment income.
- Corporate Income Tax Exemption: Expatriates and digital nomads who establish a company in Antigua and Barbuda can benefit from a 5-year corporate income tax exemption. This exemption applies to all types of business activities, except for banking, insurance, and real estate development.
- Property Tax Exemption: Expatriates and digital nomads who purchase property in Antigua and Barbuda are exempt from paying property tax for the first 5 years of ownership.
Application Process
To claim these tax breaks, expatriates and digital nomads must apply to the Antigua and Barbuda Revenue Authority (ABRA). The application process involves submitting the following documents:
- Proof of residency (e.g., utility bills, rental agreement)
- Proof of foreign income (e.g., bank statements, employment contracts)
- Business registration documents (for corporate income tax exemption)
- Property purchase agreement (for property tax exemption)
Legal References
These tax breaks are established under the following legal instruments:
- Income Tax Act (Chapter 120 of the Revised Laws of Antigua and Barbuda 2016): Provides for the personal income tax exemption for expatriates and digital nomads.
- Corporate Income Tax Act (Chapter 119 of the Revised Laws of Antigua and Barbuda 2016): Provides for the corporate income tax exemption for expatriates and digital nomads.
- Property Tax Act (Chapter 130 of the Revised Laws of Antigua and Barbuda 2016): Provides for the property tax exemption for expatriates and digital nomads.
Rationale and Objectives
These tax incentives are designed to attract and retain skilled professionals and entrepreneurs to Antigua and Barbuda. By offering these tax breaks, the government aims to:
- Promote economic growth and development
- Create jobs and opportunities for local residents
- Enhance the country's reputation as a welcoming destination for expatriates and digital nomads
If you are considering relocating to Antigua and Barbuda, take advantage of these generous tax incentives. By meeting the eligibility criteria and following the application process, you can enjoy significant tax savings and make your relocation a financially rewarding experience.
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