Income tax in St. Kitts & Nevis

January 18, 2018

INDIVIDUAL TAXATION

INCOME TAX

There is no income tax in St. Kitts and Nevis.

RENTAL INCOME
Rental income is generally not subject to tax.

Rental income remitted to individuals or companies outside of St. Kitts is subject to 10% withholding tax.

CAPITAL GAINS
No capital gains tax is levied in St. Kitts and Nevis, except on assets sold within one year of acquisition, which are taxed at 20%. There are no allowable deductions.

PROPERTY TAX

Property Tax

Property tax is levied at different flat rates, and the applicable tax rate depends on the property classification and its location.

Residential property is subject to property tax at a flat rate of 0.002% in St. Kitts.
Commercial property is subject to property tax at a flat rate of 0.003% in St. Kitts.

Residential property is subject to property tax at a flat rate of 0.0075% in Nevis. Commercial property is subject to property tax at a flat rate of 0.002% in Nevis.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by corporations are taxed at a flat rate of 33%. Income-generating expenses are deductible when calculating taxable income.

RESIDENCY

The economic citizenship program of St. Kitts and Nevis was established in 1984 to attract foreign investors. The fact that it continues to this day is a testament to its success. Citizens of St. Kitts and Nevis can enjoy tax-free living in the islands and visa-free travel to over 70 countries. Furthermore, by obtaining a second passport, an individual can get all the benefits without having to renounce his original citizenship.

To avail of this program, an investment of at least US$350,000 in any government-approved projects is required. Application costs are as follows:

  • US$35,000 for single applicant
  • US$15,000 for each dependent (including spouse, and two unmarried children under the age of 18)
  • Citizenship Certificate at US$47 each
  • Passports at US$13 each

The application process takes about six to twelve weeks, after which applicants will be granted citizenship.

 

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