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March 8, 2021

St Kitts and Nevis Tax System: Legal Entities and Property Tax

To make the application process more transparent and easier, Mann’s Solutions has prepared a brief summary of St Kitts and Nevis Tax System and fees. When thinking about applying to St Kitts and Nevis Citizenship by Investment Program, investors and business owners are carefully considering all sides, pros, and cons in terms of taxation. If the Passport will be used only for traveling, the tax status remains the same, however, if the passport will be used for opening bank accounts or any other purposes, it is better to carefully study the tax system. 

It is important to mention, that one of the main advantages of St Kitts and Nevis Tax System is that inheritance, global income, wealth, and gifts are not taxable.  Moreover, there are certain tax holidays, that are available in respect of corporation tax.  Saint Kitts and Nevis also offers a variety of international tax planning vehicles including trusts, foundations, LLP’s, IBC’s, LLC’s and Captive Insurance Companies.

St Kitts and Nevis Citizenship are available through two options. To qualify for the program, you can either make a government donation of $150,000 or invest in real estate on the island starting from $200,000. The applicant also will be required to pay certain additional fees and taxes.  

Global Taxation of Individuals

St Kitts and Nevis Tax System for individuals is most likely one of the best in the world. In this jurisdiction, inheritance, wealth, global income and gifts are not taxable. Capital gains tax is levied only if the asset is sold within 12 months and the tax rate is 20%.

To have the right to work on St. Kitts and Nevis, you need to obtain a special permit which costs $1,500 (East Caribbean Dollars) per year. Also, there is a fee for housing construction and development. The size chart of the tax varies depending on the annual earnings (all written in XCD):

3.5% – incomes from $1,000 to $6,500;

10% – salary from $6,500 to $8,000;

12% – salary of over $8,000 per year.

Taxation of Legal Entities

Most of the non-resident legal entities pay tax on profits, that have been received within the state. Resident legal entities, companies that are officially registered in St. Kitts and managed by local directors, have to pay tax on the income received all over the world. The corporate tax rate is – 35%, however, it involves certain benefits. 

 A taxon profit of non-corporate entrepreneurs is imposed on a profit of over $12,500 (XCD) from the supply of goods and over $2,000 (XCD) from rendering services. The tax rate is 4%.

Besides, If profits are transferred from a branch office in Saint Kitts and Nevis to a head office overseas, it is subject to a 10% tax.

Property Tax

Real Estate Investment is one of the most popular citizenship acquisition options, however, there are certain additional taxes that apply. In general, the size of the property tax is determined by the market value of the property. Therefore, the rate ranges from 0.2% – 0.3%. 

The profit from leasing property is not taxed as well as there’s no capital gains tax on the sale of real estate. When Real Estate Property is transferred, stamp duty must be paid by the seller. The tax rate ranges from 2% – 18.5%.

Rates and Conditions of Value Added Tax

According to St Kitts and Nevis Tax System, the VAT rate of 17% is levied on the sales of goods and services on the islands and on imports of goods and services to St. Kitts and Nevis. However, in the tourist and hotel sector the tax rate is 10% and for some goods and services interest rate can be zero.

Additional costs for applicants

In addition to the investment, the applicant will be required to pay a non-refundable due diligence fee for each member of the family. For example, U.S $7,500 for the main applicant and U.S. $4,000 for each family member over 16 years old. For children under 16, there is no due diligence fee. 

Some additional government fees and bank charges also will need to be paid. Usually, these expenses are quite small and depend on the number of the family members and their age.

 

St Kitts and Nevis Citizenship by Investment Program Overview

Being one of the most trusted and successful programs in the world, established in 1984 St. Kitts and Nevis Program offers fast-track routes to acquiring a second passport in 2-3 months. The passport of St. Kitts and Nevis grants visa-free access to over 156 countries, including the European Union countries and the United Kingdom. Program investment options start from $150,000.

 

Program benefits

Saint Kitts and Nevis Citizenship Program let obtain a second passport in just 2-3 months. Physical residence is not required, and the passport can be easily obtained remotely. The whole family including spouse, children, and parent can apply for citizenship and can transfer the citizenship to descendants. In addition to that, there’s a short investment period of 5 years, allowed dual citizenships and an attractive tax regime.

 

Investment options

1. $150,000 — Non-refundable donation to the government fund

• Contribution to the SGF (Sustainable Growth Fund) is non-refundable

• The donation amount may vary based on the number of dependents included in the main applicant’s application

• To qualify for citizenship as a single applicant, you will be required to make a government donation of $150,000

 

2. $200,000 – $400,000 Real Estate Investment 

• Real Estate option should be approved by the government

• $200,000 – joint investment with another main applicant (each applicant pays $200,000, and $400,000 in total), minimum investment period 7 years

• $400 – real estate investment with minimum investment period – 5 years

 

LONDON BASED SOLUTIONS ADVISERS – St Kitts and Nevis Citizenship

Full Support with our Immigration Advisers & Property Consultants:

Property search based on your requirements (from residential properties to high-value luxury developments)

Property virtual tours, 3-D tours and in-person tours available.

Due diligence checks and additional property checks completed by our experts.

• Residency & Citizenship document preparation and submission.

Full support from until you receive your second passport & residency.

 Mann’s Solutions is an international immigration law firm with offices in London, Hong Kong, and Moscow and has expertise in offering UK Visas and Immigration by Investment services to high net worth individuals. Our immigration advisers are regulated by OISC and IMC (Investment Migration Council).

For further information or to discuss your personal circumstances in a private consultation with our immigration lawyers in London Office, please contact us at enquiries@manns-solutions.com or call +44 207 993 63 46.