What is the most beneficial aspect of the Caribbean lifestyle? Discover the crypto-friendly St Kitts tax haven at the northern end of the Leeward Islands chain in the Eastern Caribbean Sea. Additionally, establish St Kitts tax residency to eliminate all personal income tax obligations for individuals and families. Plus much more!
Yes indeed, personal income tax obligations from business, employment, capital gains plus wealth tax, inheritance tax and gift tax are exempt on St Kitts and Nevis. St Kitts tax residents may also appreciate the legalization of cryptocurrency by the government of St Kitts and Nevis. As a result, Bitcoin ATMs can now be found around the island of St Kitts.
Furthermore, residents will enjoy the annual Caribbean festivals, beautiful beaches plus hiking in the fabulous mountainous interior of the islands. Enjoy swimming in the crystal clear turquoise water of the Eastern Caribbean Sea in addition to world class diving and fishing.
Established since 1984 St Kitts and Nevis offers access to the most well established citizenship by investment program (CIP) in the world. As a result, through the citizenship program, qualified applicants can obtain St Kitts and Nevis tax residency in a beautiful Caribbean paradise.
How to Establish St Kitts Tax Residency
The St Kitts and Nevis government permits foreigners (non citizens) to establish tax residency by living there for a minimum of two months during the relevant tax year. However, an immediate way to permanently establish tax residency is to obtain citizenship through the St Kitts CIP. If so, there is no minimum physical presence requirement.
Successful applicants of the citizenship program become lifelong citizens of St Kitts and Nevis. Your citizenship will indeed establish a very strong nexus. However, to successfully eliminate all global income tax, investors must be mindful of income taxes which can still be imposed by other countries.
This situation may arise if you hold dual citizenship in countries such as the United States. Additionally, holding assets in another country or a second residency in overseas locations such as Europe or even some Asian countries can create the risk of double taxation.
Individuals who are St Kitts tax residents and also wish to reside overseas would be wise to establish an unequivocal connection to St Kitts and Nevis to avoid foreign tax complications.
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St Kitts Citizenship By Investment Builds a Strong Nexus
Your St Kitts and Nevis citizenship is the strongest possible connection to the islands. However, St Kitts citizenship in combination with ownership of local real estate is most effective for strengthening your nexus to St Kitts and Nevis.
Local real estate can also be used as your personal residence. Additionally, real estate can be held through shares in a local real estate trust. As a result, the investor can then sell the property to a new CIP applicant at the end of the 5 year holding period. However, your St Kitts and Nevis citizenship is retained in perpetuity.
Secondary measures to establish a strong local nexus include obtaining a tax identification number (TIN), St Kitts and Nevis driver’s license or local SIM card/phone bills. We can assist you to obtain these supplemental measures.
As a result, use your TIN and St Kitts property address for overseas bank and residency applications. This will establish effective St Kitts tax residency while living overseas. Therefore, you can take full advantage of St Kitts tax haven status.
Obtaining St Kitts Tax Identification Number
How can you obtain the St Kitts and Nevis tax identification number (TIN)? To clarify, St Kitts and Nevis has no individual income tax. Indeed, for many years the St Kitts government did not provide citizens with an individual TIN.
Why should they provide a TIN? St Kitts has no income tax, with no income tax, it is not necessary to file income tax returns. Therefore, a TIN was not necessary.
However, in an effort to alleviate post citizenship complications encountered by successful CIP applicants, the St Kitts government has now made it possible to acquire a TIN.
Here are the requirements:
- You must first travel to St Kitts to obtain a St Kitts driver’s license, no exceptions. It is no longer possible to do this remotely, since July 1, 2020 the St Kitts government has mandated that you must travel to the country to get the driver’s license.
- After acquiring the driver’s license you may receive a TIN with TIN authentication letter from the St Kitts government.
We can help you to receive a TIN authentication letter. If you did not acquire St Kitts citizenship through my agency, extra fees will apply.
No Personal Income Tax on St Kitts and Nevis
Under the laws of St Kitts and Nevis, Act 14 of 1980 amended the St Kitts and Nevis Chapter 20:22 Income Tax Act (Revised Edition 2017) to eliminate all personal income tax requirements.
As a result, since becoming an independent country in 1983, St Kitts and Nevis has never imposed personal income tax on its citizens or residents. St Kitts tax residency will indeed afford CIP investors a windfall benefit of tax free status. This benefit applies to all personal income accrued from local and international sources. Additionally, there is no wealth taxes, gift taxes or capital gains tax.
All capital gains tax for individuals was eliminated by the Income Tax Act of 1980, regardless whether it is of short term or long term duration, the St Kitts capital gains tax rate for individuals is 0%.
If you think about it, St Kitts and Nevis citizens do not file income tax returns, so it would not be possible to collect the capital gains tax even if it existed. Also, it is not listed as a withholding tax obligation.
To clarify, please reference the Income Tax Act (Revised Edition 2017) Part II, Section 3, Subsection (3). Indeed, the entire section on “Charge of Income Tax” including sub-section 2 covering capital gains (excluding companies) has been rendered inapplicable since May 1, 1980.
Source: Edwin Morgan, iGlobal
Other Taxes on St Kitts and Nevis
Nonetheless, certain taxes may still be imposed by the St Kitts authorities including social security tax, withholding tax on non residents, to corporate income tax, VAT, stamp duty and real property tax.
As a result, although taxation amounts are nominal compared to more socialist minded developed economies, you may still have some exposure to local tax on St Kitts and Nevis. Here is what you need to know so you can effectively evaluate your personal circumstances.
Social Security Tax
St Kitts residents between the ages of 16 and 62 who are locally employed will have 5% of their wages deducted by their employers and contributed to the St Kitts and Nevis Social Security Board. Additionally, local business owners must match the 5% contribution of their employees. They also must pay a 1% contribution for employee injury coverage.
Total combined social security contributions equal 5% from employee + 5% from employer + 1% injury coverage = 11%.
St Kitts Tax Rates for Corporations
St Kitts and Nevis charges a flat corporate income tax (CIT) rate of 33% on net profit before tax adjusted for nondeductible expenses and allowable deductions.
Non resident corporations pay income tax on revenues received from within St Kitts and Nevis. However, resident corporations pay income tax on global income. Additionally, a company is deemed resident if it is incorporated in St Kitts and Nevis or it is registered as an external company in St Kitts and Nevis under the companies act.
A Nevis Limited Liability Company (Nevis LLC) formed under the rules of the Nevis LLC Ordinance of 1995 is 100% tax exempt, certain restrictions apply.
Taxable income includes dividends received from a resident St Kitts company by a resident St Kitts company. Also, interest payments received are taxable unless it was accrued from local government bonds or CARICOM government bonds which are exempt.
Furthermore, St Kitts corporations are taxed on capital gains at a 16.5% rate. The special CIT rate for capital gains tax is calculated as one half the CIT rate for the fiscal year or 20%, whichever is lower.
However, capital gains tax only applies if the appreciating asset was sold within the first 12 months after acquisition. Otherwise, the sale is exempt.
|Corporate Income Tax Rate||33%|
|Branch Tax Rate||33%|
|Branch withholding tax||15% on remittance of profits to head office|
|Corporate Capital Gains Tax Rate||16.5%|
St Kitts Real Property Tax Rates
St Kitts and Nevis sets the tax rate for real property according to the property classification. The five types of property classifications are residential, commercial, accommodation, institutional and agricultural. Additionally, there is a different tax rate on Nevis (which is lower) compared to the island of St Kitts.
Residential property owners will receive an 80,000 exemption on the building value. Therefore, the building tax is calculated by using the following equation ~ Building value – 80,000 x 0.002 = Building Tax due.
This amount is then added to the land tax total for submission to the Inland Revenue Department. But there is no residential deduction for the other property classifications. A sample of the demand notice is available for your review here.
As an owner of real property, this demand notice may also serve as supplemental documentation supporting a strong nexus to St Kitts and Nevis. Additional tax rates per property classification are as follows:
Stamp Duty on Transfers of Real Property
Stamp duty is levied by the St Kitts government on various transactions including transfers or real property, transfer of shares, mortgages, contracts, leases and bank loans et cetera. Additionally, the stamp duty is levied against the consideration for the sale or the value of the property as assessed by the Property Valuation officer, whichever is higher. *Note: the transfer of real estate held by share ownership does not attract transfer taxes.
Furthermore, the vendor is responsible for payment of all stamp duty on property transfers on the following basis:
|Type of Transfer||Tax Rate|
|Real Property Transfer in exchange for money||12%*|
|Real Property Transfer w/o Consideration||6%|
|Transfer between Husband and Wife||$100 flat fee|
|Transfer between Parents and Children||$100 flat fee|
|Transfer of Land by Will||$100 flat fee|
|Transfer of Registered Condominium Units||5%*|
|Transfer of Shares or Debentures||2%*|
|Transfer of Mortgages||1%|
|Transfer of Bank Loans to aliens||2.5%|
*Our real estate trust structure allows the CIP investor to transfer ownership of their unit without attracting transfer taxes.
Withholding Tax (Non Residents)
St Kitts and Nevis withholding tax of 15% should be withheld when a resident company or individual is making payment to a non resident that is overseas in respect of the following:
- Interest, annuities, premiums and discounts.
- Rent, leases, royalties and contract payments.
- Natural resources
- Commissions, remuneration, fees and licenses.
- Charges for personal services, commercial advice and managerial skills.
- Administration, management or head office expenses.
- Technical, vocational or other service fees.
- Accounting, actuarial, legal and audit expenses.
- Any other annual or periodic payments or distributions.
St Kitts and Nevis Value Added Tax (VAT) Rates
All businesses, individuals and government entities are required to pay VAT for goods and services received on St Kitts and Nevis. Additionally, VAT rates are segmented into three tiers which allocate the rate of tax businesses must charge to customers.
The three segments are standard 17% which is reduced to 10% for hotel accommodation and restaurants. Additionally, most foods (with the exception of prepared food, live animals and plants), medicine and funeral expenses are exempt from VAT.
Persons who are likely to make supplies exceeding $96,000 for professional services or $150,000 for other business activities for a continuous period of 12 months are required to register for VAT.
How to Obtain St Kitts and Nevis Citizenship by Investment
Successful applicants of the St Kitts and Nevis CIP will need to pass a stringent background check and submit to a health exam. In addition, investors must fill in all the required application forms and submit the requisite supporting documents.
The above requirements are submitted in combination with a qualified investment into the local economy. Investment options for the program include a nonrefundable minimum contribution of US$150,000 to the government’s Sustainable Growth Fund.
In addition, investors have the option of investing a minimum amount of US$200,000 into a government approved real estate development. Cryptocurrency can be accepted for as payment for the real estate investment option (limitations apply).
Choosing the real estate investment option also allows investors to sell the investment at the end of the 5 year holding period if the purchase price was a minimum of $400,000 or you can sell in 7 years if the purchase price was at least $200,000 and above. As a result, you can recoup your investment while retaining St Kitts citizenship in perpetuity.
Approval time for the St Kitts CIP is 3-4 months with the option of accelerated approval in 45-60 days for an additional fee. After final approval is received your passport and accompanying certificate of naturalization will be sent to you by reputable delivery service.
Global Benefits of St Kitts Citizenship by Investment
The St Kitts and Nevis citizenship by investment program allows successful applicants to establish St Kitts tax residency while enjoying lifelong citizenship in a Caribbean paradise.
Indeed, there is no better place than the Caribbean to benefit from a beautiful natural environment in combination with a well connected financial center. Additionally, global access and financial security is available to all qualified applicants.
Benefits of St Kitts and Nevis citizenship include:
- No minimum residency requirements to retain citizenship.
- No requirement to report offshore assets e.g. FBAR.
- Personal interview is not required during the application process.
- Citizenship is hereditary and can be passed to dependents without the need to reside in the country.
- No requirement to notify your country of origin during the application process.
- As a citizen of St Kitts and Nevis, you are also a citizen of the British Commonwealth.
- St Kitts and Nevis is a member state of both the OECS and CARICOM.
- Visa free access or visa on arrival in over 157 countries including EU, UK, Ireland, Russia and Brazil.
- No international income tax, capital gains tax, inheritance tax or gift tax.
- The Eastern Caribbean Central Bank is located in Basseterre, the capital city of St Kitts and Nevis.
- Cryptocurrency was recently legalized in St Kitts and Nevis under the Virtual Asset Bill of 2020.
- Cryptocurrency can be accepted as payment for the CIP real estate option (limitations apply).
Explore your potential as a global citizen. In addition, live and work in your country of choice without paying taxes somewhere else. You can meet your true potential with a St Kitts and Nevis passport.