St Kitts and Nevis is an island country in the Caribbean that consists of two islands – St Kitts and Nevis. Home to various mountain ranges, tropical rainforests, and coastal areas, the country has a stunning natural landscape. In addition to this, St Kitts and Nevis boast an inviting business climate, a stable economy, and significant tax benefits. Therefore, this country has slowly but steadily emerged to become one of the most attractive places for foreign investors. In this article, we will take you through St Kitts taxes, the benefits of investing in St Kitts and Nevis, and St Kitts and Nevis Citizenship by Investment Program.
St Kitts and Nevis Tax Regime
St Kitts and Nevis is considered to be one of the most tax-friendly nations in the world. While St Kitts tax haven status isn’t official, individuals don’t have to pay income tax, gift tax, or inheritance tax in the country. However, American citizens and Green Card holders living in the Saint Kitts as tax residents should note that they’re still required to comply with US tax laws, including filing US tax returns with the IRS and reporting income earned overseas.
St Kitts applies a profitable VAT on a few goods and services. For instance, 10 percent VAT applies to hotels and accommodations in Saint Kitts and Nevis.
Tax Payers in St Kitts and Nevis
Not all individuals have to pay taxes in St Kitts and Nevis. It depends on whether or not the individual or a company is a tax resident in St Kitts and Nevis.
Who are tax residents?
An individual living in St Kitts and Nevis for more than 183 days a year, having a registered address in the country, and performing social, economic, political, and cultural activities can be considered a St Kitts and Nevis tax resident. Companies that are registered in St Kitts and Nevis, operated and managed from the country, are also considered tax residents.
Who are non-tax residents?
An individual having St Kitts and Nevis citizenship but living in a different country is considered a non-tax resident of St Kitts and Nevis. Companies that are not registered or managed in the country can also be regarded as non-tax residents. But if these companies are selling goods and services in St Kitts and Nevis, they must pay taxes on the income earned in the country.
Learn more about getting tax residency by Investing in St Kitts and Nevis
Types of Taxes in St Kitts and Nevis for Individuals
In St Kitts and Nevis, tax and non-tax residents are exempted from paying income tax and inheritance taxes in the country.
Withholding taxes – Non-tax residents in St Kitts and Nevis must pay a withholding tax. The rate of which is fixed – 15 percent of the payments. If you are a tax resident in the country, then you don’t have to pay any withholding tax.
Social contributions – These are taxes that are withdrawn from the salary of a person. Both tax residents and non-tax residents need to pay taxes at a 5 percent rate.
Stamp duty – This is applicable on the transfer of real property and ranges from 6-10 percent
Unincorporated business tax – If a person or a group of persons doing business in St Kitts and Nevis are not registered under the Companies Act, they must pay unincorporated business tax. The rate is fixed – 4 percent of sales of goods and services.
Taxes paid by individuals – An Overview
| Tax Type | Tax Residents | Non-Tax Residents |
| Dividends | 0 percent | 15 percent |
| Royalties | 0 percent | 15 percent |
| Interests | 0 percent | 15 percent |
| Social Contribution | 5 percent of the salary | 5 percent of the salary |
| Stamp Duty | 6-10 percent | 6-10 percent |
| Unincorporated Business Tax | 4 percent | 4 percent |
Types of Taxes for Legal Entities in St Kitts and Nevis
St Kits corporate tax – The corporate income tax rate in St Kitts and Nevis is fixed at 33 percent and is applicable to the company’s net profit.
Tax residents in the country need to pay corporate taxes on their global income, whereas non-residents pay corporate taxes only on the income earned in St Kitts and Nevis. Organizations in the country need to pay their corporate taxes at the end of the fiscal year.
VAT – The standard VAT rate in St Kitts and Nevis is 17 percent. VAT is generally included in the cost of the products. A VAT of 10 percent is charged for services in hotels and restaurants. In St Kitts and Nevis, there are a few things that are exempted from taxes like:
- Vehicle, health, life, and property insurance
- Transportation
- Educational services
- Interest on loans
- Electricity
- Water for domestic purposes
- Medical services
Please note that if you are VAT registered, you must file a monthly VAT return before the 15th of the next month.
Withholding Tax – If you are a tax resident of St Kitts and Nevis, then you are not required to pay withholding taxes as they are included in the company’s profit. On the other hand, non-tax residents must use a St Kitts taxes calculator and pay taxes on dividends, royalties, and interests at a rate of 15 percent.
Social contributions – You should pay 6 percent of your salary as social contributions.
Taxes paid by legal entities – An Overview
| Tax Type | Tax Residents | Non-tax residents |
| Corporate Tax | 33 percent on global income | 33 percent on income earned in St Kitts and Nevis |
| VAT | 0-15 percent depending on the product | 0-15 percent depending on the product |
| Dividends | 0 percent | 15 percent |
| Royalties | 0 percent | 15 percent |
| Interests | 0 percent | 15 percent |
| Social Contribution | 6 percent of salary | 6 percent of salary |
Property Taxes in St Kitts and Nevis
Purchase of Property – Investors participating in the St Kitts and Nevis Citizenship Program don’t have to pay the Alien Landholding License tax on the purchase of property. Others have to own a license for purchasing a property that costs around 10 percent of the property value.
Property Ownership – The rate of tax for properties depends on their location and use. Agricultural and Institutional properties in St Kitts and Nevis are excluded from taxes. But they have to be certified by the Director of Agriculture or qualify under the Education Act.
Tax rates on various properties in St Kitts and Nevis
| Property Type | Building or Land | St Kitts | Nevis |
| Accommodation | Building | 0.2 percent | 0.3 percent |
| Land | 0.2 percent | 0.2 percent | |
| Agriculture | Building | 0 percent | 0 percent |
| Land | 0 percent | 0.1 percent | |
| Commercial | Building | 0.3 percent | 0.3 percent |
| Land | 0.3 percent | 0.2 percent | |
| Institutional | Building | 0 percent | 0.2 percent |
| Land | 0 percent | 0.15 percent | |
| Residential | Building | 0.2 percent | 0.156 percent |
| Land | 0.2 percent | 0.75 percent |
Selling real estate in St Kitts and Nevis
You have to pay a stamp duty of 6-10 percent if you are selling real estate in St Kitts and Nevis. This tax rate depends on various factors like location and usage. You also don’t have to pay any St Kitts capital gains tax.
St Kitts and Nevis Tax Benefits
- St Kitts and Nevis is one of the few countries in the Caribbean that doesn’t enforce income taxes on individuals
- Although the standard VAT rate in the country is 17 percent, the tourism sector is taxed at a reduced rate of 10 percent
- There is no VAT on a few of the goods and services in St Kitts and Nevis. For instance, there is a 0 percent VAT rate on goods like flour, rice, sugar, milk, oats, and bread. Some goods and services like water supply, electricity, educational services are exempted from VAT completely.
- In comparison to other countries, St Kitts and Nevis property tax is low.
How to become St Kitts and Nevis tax resident?
To obtain tax residency in St Kitts and Nevis, you must stay there for at least two months during the tax year. To obtain permanent tax residency status in St Kitts and Nevis, you need to apply for the St Kitts and Nevis Citizenship Program.
St Kitts and Nevis Citizenship – Investment Options
You can obtain citizenship in the country through three investment routes:
Investment in Sustainable Island State Contribution – Contribute $250,000 to the SISC, which has replaced the Sustainable Growth Fund as an investment route to obtain citizenship. Additional fees may also apply. Check out our article on the St Kitts and Nevis Sustainable Growth Fund.
Investment in Real Estate – Make a minimum real estate investment of $325,000 in a unit in an Approved Development, purchase a condominium unit forth at least $600,000, or purchase a single-family private dwelling worth $600,000 or more. Please note that the properties can be resold after seven years.
Public Benefit Investment – Make a minimum investment of $250,000 to support a project previously approved by the government that benefits the population of St Kitts and Nevis.
Find out the Cost of St Kitts and Nevis Citizenship by Investment
St Kitts and Nevis Passport Visa-Free Countries
With a St Kitts and Nevis passport, you can have visa-free access to more than 140 countries across the world.
- Albania – visa-free/90 days
- Andorra – visa-free/90 days
- Angola – pre-visa on arrival
- Antigua and Barbuda -visa-free
- Argentina – visa-free/90 days
- Armenia – eVisa/120 days
- Austria – visa-free/90 days
- Bahamas – visa-free/90 days
- Bangladesh – visa-free/90 days
- Barbados – visa-free/180 days
- Belarus – visa-free/30 days
- Belgium – visa-free/90 days
- Belize – visa-free
- Bolivia – visa on arrival / eVisa/90 days
- Bosnia and Herzegovina -visa-free/90 days
- Botswana – visa-free/90 days
- Brazil – visa-free/90 days
- Bulgaria – visa-free/90 days
- Burundi – visa on arrival/30 days
- Cambodia – visa on arrival / eVisa/30 days
- Cape Verde – visa on arrival (EASE)
- Chile – visa-free/90 days
- Colombia – visa-free/90 days
- Comoros – visa on arrival/45 days
- Congo (Dem. Rep.) – eVisa/90 days
- Costa Rica – visa-free/90 days
- Croatia – visa-free/90 days
- Cuba – visa-free/30 days
- Cyprus – visa-free/90 days
- Czech Republic – visa-free/90 days
- Denmark – visa-free/90 days
- Djibouti – eVisa
- Dominica – visa-free
- Dominican Republic – visa-free
- Ecuador – visa-free/90 days
- El Salvador – visa-free/90 days
- Estonia – visa-free/90 days
- Ethiopia – eVisa/90 days
- Fiji – visa-free/120 days
- Finland – visa-free/90 days
- France – visa-free/90 days
- Gabon – eVisa/90 days
- Gambia – visa-free/90 days
- Germany – visa-free/90 days
- Greece – visa-free/90 days
- Grenada – visa-free
- Guatemala – visa-free/90 days
- Guinea e – Visa/90 days
- Guyana – visa-free/90 days
- Haiti – visa-free/90 days
- Honduras – visa-free/90 days
- Hong Kong – visa-free/90 days
- Hungary – visa-free/90 days
- Iceland – visa-free/90 days
- India – eVisa/30 days
- Iran – eVisa/30 days
- Ireland – visa-free/90 days
- Israel – visa-free/90 days
- Italy – visa-free/90 days
- Jamaica – visa-free
- Jordan – visa on arrival
- Kenya – visa-free/90 days
- Kiribat -visa-free/120 days
- Kosovo – visa-free/90 days
- Laos – visa on arrival / eVisa/30 days
- Latvia – visa-free/90 days
- Lebanon -visa on arrival/30 days
- Lesotho – visa-free/90 days
- Liechtenstein – visa-free/90 days
- Lithuania – visa-free/90 days
- Luxembourg – visa-free/90 days
- Macao -visa on arrival/30 days
- Madagascar – visa on arrival / eVisa/90 days
- Malawi – visa-free/90 days
- Malaysia – visa-free/30 days
- Maldives – visa on arrival/30 days
- Malta -visa-free/90 days
- Mauritania – visa on arrival
- Mauritius – visa-free/90 days
- Micronesia – visa-free/30 days
- Moldova – visa-free/90 days
- Monaco – visa-free/90 days
- Montenegro – visa-free/90 days
- Mozambique – visa on arrival / eVisa/30 days
- Nepal – visa on arrival/150 days
- Netherlands -visa-free/90 days
- Nicaragua – visa-free/90 days
- Nigeria – pre-visa on arrival
- North Macedonia – visa-free/90 days
- Norway – visa-free/90 days
- Palau – visa on arrival/30 days
- Palestinian Territories -visa-free
- Panama – visa-free/90 days
- Papua New Guinea – eVisa/30 days
- Peru – visa-free/180 days
- Philippines – visa-free/30 days
- Poland – visa-free/90 days
- Portugal – visa-free/90 days
- Romania – visa-free/90 days
- Russian Federation – visa-free/90 days
- Rwanda – visa-free/90 days
- Saint Lucia – visa-free
- Samoa – visa on arrival/90 days
- San Marino – visa-free/90 days
- Senegal – visa on arrival/30 days
- Serbia – visa-free/90 days
- Seychelles – tourist registration/90 days
- Sierra Leone – visa on arrival/30 days
- Singapore – visa-free/30 days
- Slovakia – visa-free/90 days
- Slovenia – visa-free/90 days
- Solomon Islands – visa on arrival/90 days
- Somalia – visa on arrival/30 days
- South Sudan – eVisa
- Spain – visa-free/90 days
- St. Vincent and the Grenadines – visa-free
- Suriname – visa-free/180 days
- Sweden – visa-free/90 days
- Switzerland – visa-free/90 days
- Taiwan – visa-free/30 days
- Tanzania – visa-free/90 days
- Timor-Leste – visa on arrival/30 days
- Togo – visa on arrival/15 days
- Tonga – visa on arrival/31 days
- Trinidad and Tobago – visa-free
- Tunisia – visa-free/90 days
- Tuvalu – visa on arrival/30 days
- Türkiye – visa-free/90 days
- Uganda – eVisa
- Ukraine – visa-free/90 days
- United Kingdom – visa-free/180 days
- Uruguay – visa-free/90 days
- Uzbekistan – visa-free/30 days
- Vanuatu – visa-free/30 days
- Vatican City – visa-free/90 days
- Venezuela – visa-free/90 days
- Zambia – visa-free/90 days
- Zimbabwe -visa-free/90 days
For more details, you can read this article: The cost of living in St Kitts and Nevis.
