Antigua and Barbuda Taxes for US Expats: A Complete Guide
- Life abroad as a US expat in Antigua and Barbuda
- Antigua and Barbuda at a glance
- US Expat Taxes in Antigua and Barbuda
- Who Has to Pay Income Tax in Antigua and Barbuda?
- Determing Residency of Antigua and Barbuda
- Income tax rates in Antigua and Barbuda
- Other Tax Situations in Antigua and Barbuda
- Does the US Have a Tax Treaty with Antigua and Barbuda?
- Does the US Have a Totalization Agreement with Antigua and Barbuda?
- Tax Forms for US Expats Living in Antigua and Barbuda
- US Tax Forms for Expats in Antigua and Barbuda
- Are there US tax deductions available to Americans in Antigua and Barbuda?
- Does Antigua and Barbuda offer tax deductions to US expats?
- Navigating Tax Compliance for US Expats in Antigua and Barbuda
Life abroad as a US expat in Antigua and Barbuda
Famous for its sandy white beaches, rainforests, and tropical climate, the Caribbean Antigua Island and Barbuda Island make up a country known as Antigua and Barbuda. With favorable climates and tax incentives, many US expats enjoy residing in this tropical country. If you’re one of them, you should also know the basics of managing Antigua and Barbuda taxes for US expats.
Calculating how much you owe in taxes can be complicated — especially for US expats living abroad. We’ll walk you through everything you need to know about your tax obligations both for Antigua and Barbuda and the US, as well as break down valuable tax deductions and credits that can lower your US tax bill.
Here’s everything Americans abroad should know about expat taxes in Antigua and Barbuda:
Antigua and Barbuda at a glance
- Primary Tax Forms: N/A
- Tax Year: N/A
- Tax Deadline: N/A
- Currency: Eastern Caribbean Dollar (XCD)
- Population: 99 thousand
- Number of Expats in Antigua and Barbuda: Approx. 28,000
- Capital City: Saint John’s
- Primary Language: English
- Tax Treaty: No
- Totalization Agreement: No
US Expat Taxes in Antigua and Barbuda
While most US expats are on the hook to file tax returns in two countries, Americans living abroad in Antigua and Barbuda have specific tax advantages. In 2016, the government of Antigua and Barbuda eliminated personal income tax entirely, meaning no money earned in the country is subject to taxation.
There are a few exceptions and some tax incentive programs available in Antigua and Barbuda that US expats might want to explore.
Here’s what you should know about taxes for foreigners in Antigua and Barbuda.
Who Has to Pay Income Tax in Antigua and Barbuda?
Since the country eliminated its personal income tax, no one residing in the country is required to pay this tax. However, if you’re a US expat, you are still on the hook for income tax in America.
There are some exceptions, though, depending on whether or not you’re a resident or non-resident of the islands.
Determing Residency of Antigua and Barbuda
Becoming a resident in Antigua and Barbuda is a little more involved than in most countries. It may require paying for a special residency program or waiting up to four years to apply for resident status.
Not sure if you’re considered a resident of Antigua and Barbuda? Here’s how to tell.
Antigua and Barbuda Resident Qualifications
You can apply to become a resident of Antigua and Barbuda if:
- You have resided in the country for 183 days in a tax year
- Are approved for one of its tax-residency programs
- You are an Antigua and Barbuda national but have tax residency in another country.
Tax Residency Programs in Antigua and Barbuda
Antigua and Barbuda offers several tax residency programs that US expats and investors can apply for to qualify for tax breaks.
Its official Antigua and Barbuda tax residency program allows you to do business in the country or reside there. The benefits of this program include no income tax, capital gains tax, inheritance tax, or wealth tax on worldwide income or assets.
To qualify, applicants must:
- Maintain a residence in Antigua and Barbuda
- Reside in the country for 30 days or more
- Pay a flat $20,000 tax rate per year
- Receive a certificate of residency and Taxpayer Identification Number (TIN)
You can apply online for this residency program.
Another tax residency program is the Nomad Residence Program, which allows traveling expats who wish to reside in Antigua and Barbuda a non-permanent residency. This specialized residency qualification is offered for up to two years.
To qualify, applicants must:
- Pay between $1,500 – $3,000 in application fees (price varies by household size)
- Make $50,000 or more each qualifying year
- Provide proof of employment and health insurance
Personal information, like your passport and police clearance, is also required.
You can apply online for this nomad residency program.
Antigua and Barbuda Non-resident Qualifications
If you’ve lived in Antigua and Barbuda for less than 183 days and/or have not been approved for a residency program, you’ll be considered a non-resident and may owe taxes on worldwide income and assets.
Income tax rates in Antigua and Barbuda
Antigua and Barbuda have become attractive destinations for investors and expats alike since the introduction of tax law in 2016. Under this law, residents and non-residents are not required to pay personal income tax on the income earned within the country’s borders. This has not only led to a surge in foreign investment but has also created an incentive for highly-skilled professionals to move to Antigua and Barbuda.
The country’s zero percent personal income tax rate has put it on the map as one of the few nations worldwide with no personal income tax, offering individuals and businesses a more favorable tax environment. The implementation of this tax law has undoubtedly boosted the nation’s economy and strengthened its position as an attractive destination for business and lifestyle.
Other Tax Situations in Antigua and Barbuda
If you earn self-employment income in Antigua and Barbuda, you could owe 0%, 8%, or 25% in self-employment taxes. Self-employed workers must also register with the Inland Revenue to obtain a Tax Identification Number.
Capital Gains Tax
There is no capital gains tax in Antigua and Barbuda.
Businesses in Antigua and Barbuda pay a flat corporate tax rate of 25% on taxable corporate profits.
In addition, a withholding tax of 25% is placed on non-resident companies in Antigua and Barbuda on earnings from dividends, interest and royalties.
The basic sales tax rate in Antigua and Barbuda is 15%, though some services, like hotel accommodations, have a lower sales tax rate of 14%. Some tax activities have a 0% sales tax. You can find a comprehensive list on the federal Antigua and Barbuda website.
There is no wealth tax in Antigua and Barbuda.
There is no inheritance tax in Antigua and Barbuda.
Property tax, also known as real estate tax, in Antigua and Barbuda, is the same rate for residents and non-residents, ranging from 0.1% to 0.5% of a property’s assessed value.
In Antigua and Barbuda, Social Security is known as Social contributions. Employees contribute 5.5% of their gross monthly income to Social Security and social health care. Employers contribute 6% of an employee’s salary.
Does the US Have a Tax Treaty with Antigua and Barbuda?
The US has tax treaties with many countries to prevent double taxation, but Antigua and Barbuda is not currently one of them.
Does the US Have a Totalization Agreement with Antigua and Barbuda?
Antigua and Barbuda does not currently have a totalization agreement with the US. A totalization agreement prevents expats from paying duplicate Social Security taxes on the same income. Since there is no agreement in place, Americans working in Antigua and Barbuda will be required to contribute to both Antigua and Barbuda and US Social Security.
Tax Forms for US Expats Living in Antigua and Barbuda
Most residents and non-residents will not be required to file tax returns in Antigua and Barbuda since there is no personal income tax.
However, if you own a business or have self-employment taxes, you’ll need to file profit/loss tax forms and the correct tax form for your business entity. You can find a complete list of tax forms on the Antigua and Barbuda government website.
US Tax Forms for Expats in Antigua and Barbuda
IRS Form 1040: Individual Income Tax Return
If you’re a US expat working in Antigua and Barbuda, you still have to file your income taxes in the US. IRS form 1040 is the standard income tax form that all US citizens and resident aliens must submit each year.
In the US, your tax return is due on April 15 (this year, it falls on April 18), but US expats working in Antigua and Barbuda have until June 15 to file this return without penalty. But, if you owe taxes to the US government, you must submit them by April 18 to avoid penalties or late fees.
IRS Form 8938: Statement of Specified Foreign Financial Assets (FATCA)
As an expat living in Antigua and Barbuda, you may also be required to file a FACTA. This financial report is required if your foreign financial assets exceed specific thresholds. For 2022, this is $200,000 for single filers and $400,000 for those who are married and filing jointly.
You can file your FACTA by filling out and submitting Form 8938, along with your 1040. The FACTA is due by April 15 each year (for your 2022 taxes, the due date is April 18).
FinCEN Form 114: Report of Foreign Bank and Financial Accounts (FBAR)
US citizens living in Antigua and Barbuda who have or had $10,000 or more in one foreign bank account or a combination of foreign accounts during the tax year must submit the FBAR, also known as FinCEN Form 114.
This form can be submitted online through FinCEN’s BSA e-filing system. You can submit it through the mail by calling FinCEN and asking for an online filing exemption. If FinCEN approves your request, you’ll receive a paper copy in the mail to send back.
The FBAR is due on April 15 (April 18 for your 2022 taxes). However, if you need more time to file, the deadline automatically extends to October 15 each year without penalty.
Are there US tax deductions available to Americans in Antigua and Barbuda?
Although US citizens living in Antigua and Barbuda already have tax incentives in this foreign country, you may be eligible for even more tax breaks on your US taxes. We’ll walk you through three common tax deductions and credits and explain if residents in Antigua and Barbuda are eligible.
Foreign Earned Income Exclusion
You may be able to reduce your taxable income on your US tax return by claiming the Foreign Earned Income Exclusion (FEIE). The FEIE allows you to deduct some or all of your foreign-earned income from your US taxable income.
For your 2022 taxes, you can exclude up to $112,000 in foreign-earned income. So, if you made less than this amount in Antigua and Barbuda in 2022, you may eliminate your US tax bill entirely.
You’ll file IRS Form 2555 to claim the Foreign Earned Income Exclusion.
Foreign Tax Credit
US expats can also lower their tax burden with the Foreign Tax Credit (FTC) — but this tax break likely won’t make sense for Americans living in Antigua and Barbuda. That’s because this tax credit works by deducting any income taxes you’ve paid to Antigua and Barbuda, dollar for dollar, from your US tax bill.
Since Antigua and Barbuda does not have a personal income tax, this isn’t a tax credit that will likely help US expats living there.
Foreign Housing Exclusion
You may also be able to deduct certain eligible housing-related expenses from your US tax liability by claiming the Foreign Housing Exclusion.
US expats can only claim this exclusion if they’re also claiming the Foreign Earned Income Exclusion, and it’s also filed on Form 2555.
Does Antigua and Barbuda offer tax deductions to US expats?
Antigua and Barbuda offers many tax incentives, including no income tax, no wealth tax, no capital gains tax, and no inheritance tax.
Navigating Tax Compliance for US Expats in Antigua and Barbuda
We hope this guide has helped you better understand how Antigua and Barbuda taxes work for US expats. However, taxes can be complex, and your specific filing situation may have unique nuances. If you have any remaining questions, don’t hesitate to reach out to Greenback for assistance.
Contact us, and one of our customer champions will gladly help. If you need very specific advice on your specific tax situation, you can also click below to get a consultation with one of our expat tax experts.