Jun 20, 2022Remote taxes9 min read
How to set up your taxes in Antigua & Barbuda
Table of Contents
I.How to set up your taxes in Antigua & Barbuda
1. 1.How it works
1. 1. 1.Pros & Cons
1. 1. 1. 1.How to apply for the Nomad Digital Residency Visa
1. 1. 2.Fees
1. 1. 3.How does Antigua & Barbuda benefit from this system?
1. 1. 4.What the nomads say
Who will this be the most beneficial for? Great for any digital nomad that plans on spending more than ninety days of the year on the islands. This visa also suits location independent remote workers that don’t have any issues with not having a tax residency for two years. The Permanent Residence program that we will touch on works best for high-income earners who plan on using Antigua & Barbuda as a tax base and want to take advantage of the 0% rates.
Difficulty of applying from 1-5: Nomad Digital Residence Visa - 1 Permanent Residence Program - 4
Are there any citizens of specific countries that can’t apply? Both programs are open to all applicants.
What % of the process can be done online? Nomad Digital Residence Visa - 100% Permanent Residence Program - Most of this needs to be done in person.
How to set up your taxes in Antigua & Barbuda
The islands of Antigua and Barbuda are ranked as one of the most desirable locations for nomads to visit. The islands have recently opened themselves up to the digital nomad community and are reeling workers in with a new visa and a 0% tax rate. By obtaining the Nomad Digital Residence Visa, you can become certified as a resident of the islands. This status means you will not be liable to pay any capital gains, estate or personal income taxes.
So, when you arrive on the islands using the Nomad Digital Residence Visa, you will be considered a (temporary) resident, which means you’ll be able to take advantage of 0% on tax as long as you meet the following criteria:
- You’re 18 years or older.
- You’re employed outside of Antigua and Barbuda and can work remotely.
- You are a minimum annual income of $50,000 USD.
- You have a clean criminal record.
- You can pay the associated fees (starting at $1,500 USD for a single applicant).
- No other country is claiming taxes from you.
As a resident, you don’t need to worry about staying in Antigua & Barbuda for a minimum amount of time to maintain your status; however, due to tax regulations, you will still have to be careful not to spend more than 183 days residing in any other country. As a Digital Nomad Resident, you’re allowed to work in Antigua & Barbuda for up to two years, and there is currently no possibility of renewing this visa. If you wish to stay longer, there’s the possibility of obtaining Permanent Residence through a particular program, but this does come at a high financial cost.
Although The Nomad Digital Residence Visa allows you to be registered as a resident of Antigua and Barbuda, it’s important to note that it is not a path to tax residency because once you’re based there, you will not be paying any taxes on your income.
How it works
The Permanent Residence program is an option for high-income earners who aren’t interested in temporary residency and those who decide they would like to stay longer than two years in Antigua & Barbuda that the Nomad Visa grants them. This program allows you to gain permanent residency and tax residency with no investment requirements.
You can apply for the permanent tax resident program if you follow these steps:
- Pay the government a fixed fee of $20,000 USD a year in tax.
- Maintain a permanent residence in Antigua & Barbuda (this would require proof of a yearly rental contract).
- Spend at least thirty days of the year on the islands.
- Have an annual income that exceeds $100,000 USD.
Additionally, for those thinking about investing their time long-term in Antigua & Barbuda, there is the Golden Visa option. Essentially, by making a $100,00 USD charity investment and a $400,000 USD investment on a property that you need to keep for five years, you’re able to acquire a Golden Visa. This visa gives you citizenship rights, along with a secondary passport and allows for indefinite stay within the country without the need to pay taxes. This option could work out better for those thinking of staying over five years as they would be paying less in fixed taxes and could likely sell their investment property for a significant profit after that period of time, whilst still maintaining all the benefits the Golden Visa brings.
Pros & Cons
- The Nomad Digital Residency Visa can be applied for online.
- 0% taxation.
- Stunning Caribbean islands.
- Those who manage to make the islands a permanent tax base could profit from the no-taxation laws and earn money back on any initial investment or yearly costs through tax efficiency.
- The Nomad Digital Residence Visa currently only allows for a two-year stay with no extensions.
- Minimum income thresholds for applicants are high.
- Visa application fees are expensive.
- The path to tax residency is only available to high-income earners.
- Nomadic families will have to pay significantly more in application fees.
How to apply for the Nomad Digital Residency Visa
Antigua & Barbuda recently launched a new government website where applicants can submit their documents. You’ll be expected to provide the following:
- Evidence that your non-refundable application fee has been paid.
- A passport photo of each applicant measuring 2 x 2 inches (51 x 51 mm). The rules regarding these photographs are pretty strict, with the distance having to be between 1 -1 3/8 inches (25 – 35 mm) from the bottom of the chin to the top of the head.
- Copy of the biographical data within your passport.
- A certificate that shows you have medical insurance coverage for the period of your intended stay on the islands.
- A police check proving a clean criminal record for each applicant over the age of 16.
- If you’re applying on behalf of a partner or your family, you’ll need to add proof of relationship to dependents, such as birth or marriage certificates.
- Evidence of employment, including self-employment
- A declaration certifying that you have an expected annual income of no less than $50,000 USD or the equivalent in other currencies for each year of the two years in Antigua & Barbuda and that you have the means to support yourself and any accompanying dependents during your stay in Antigua and Barbuda.
The application fee you will be expected to pay increases per applicant.
- Single applicant: US$1,500.00
- Couple US$2,000.00
- Family of 3 and over: US$3,000.00
- A family of more than three dependents will incur an additional fee of $650 per additional dependent.
All application fees are non-refundable. The NDR Visa is valid from the day of approval and for two years thereafter.
How does Antigua & Barbuda benefit from this system?
Labeling itself as a “safe Caribbean country with access to modern amenities, including a sound telecommunications infrastructure”, Antigua and Barbuda hopes to encourage high-income earners to make a temporary base on the islands. The program aims to inject further life into the economy and promote the idea of a long-term stay within the islands rather than the short-term holiday visit the countries are primarily known for.
“You can work in any part of the world from Antigua as if you were in your office or home,” Prime Minister Gaston Browne.
What the nomads say
“For many years now, since 2005 to be precise, we have been championing the Eastern Caribbean as one of the most desirable destinations in the world. Antigua & Barbuda, in particular, offers one of the most comfortable homes you can find anywhere. Having lived here with my family for ten years, I can attest to the quality of the destination as a second or future main home base. Antigua is a safe and growing destination with good schools and a sophisticated, multicultural population, and many daily international flights, being the flight hub of the region with a brand new international airport. Residents and citizens here can enjoy fast fibre optic internet connections, peace of mind for Antigua & Barbuda is statistically one of the safest islands in the Caribbean, and an idyllic place for people of all ages to enjoy a healthy, fun and productive lifestyle.” - Citizens International
About the author
Researcher & Writer
Luke has been traveling around the globe for the last decade and is currently based in Chiang Mai, Thailand. He's been working remotely on everything from directing music festivals, to online ESL coaching, to writing and contributing as a researcher for Borderless. He is a passionate advocate for the modern nomadic way of life and enjoys getting others started on their journey towards remote living.
Founder | Business Strategy Consultant
The Consulting Company & Pnyca
Nick is a business strategy consultant, currently based in London but traveling the world. He is the founder of The Consulting Company, which specializes in startup and SME growth, finance, operations and tax optimization. Coming from a Mechanical Engineering background but with extensive knowledge in finance, tax law and project management, Nick is a problem solver at heart. He is also building Pnyca - an app reinventing democracy and citizen engagement.