Antigua and Barbuda offshore: company setup, tax benefits & citizenship

The profitability and efficiency of business in Antigua and Barbuda can be explained by a combination of several key characteristics. They will be of interest not only to business people, but also to investors, wealthy individuals, start-up founders, expats and digital nomads. Registering a company in Antigua and Barbuda allows you to launch a commercial project of any complexity, avoiding compromises and consciously giving up opportunities that are important in a particular situation.

The main advantage of this small jurisdiction in the Caribbean archipelago is its good combination of characteristics, with no significant drawbacks that could affect business. The Antigua and Barbuda offshore zone differs from many other tax-free zones in that it has a fairly high reputation. All necessary measures are taken here to comply with the recommendations of international financial regulators, so there are no complaints from the FATF and OECD.

Investing in Antigua and Barbuda is a profitable and promising venture with minimal risk. Business conditions are favourable, and administrative control places almost no restrictions on commercial opportunities. A big plus of this jurisdiction is the option to obtain a second passport of Antigua and Barbuda, with relatively low financial requirements — from $ 230,000.

Business profile of Antigua and Barbuda:

• official languages — English, Antiguan Creole;
• form of government: constitutional monarchy;
• location — south of the Caribbean region;
• Time zone: GMT UTC-4;
• Currency: East Caribbean dollar (XCD); USD/XCD exchange rate: 1:2.7026 (common currency for OECS states, Anguilla and Montserrat);
• main sectors of the economy — tourism, gambling, agriculture, financial services, services for wealthy individuals;
• GDP —$ 2.03 billion, GDP per capita —$ 21.8 thousand

Advantages of Antigua and Barbuda

The level of economic development directly affects business operations. The main criteria are corporate infrastructure, current legislation, company registration rules, and access to financial and banking services. The attractiveness of investing in Antigua and Barbuda is largely explained by high macroeconomic indicators, which significantly exceed those of other offshore jurisdictions in the Caribbean region.

A good example is gross domestic product. Nominal GDP is relatively low, with the jurisdiction ranking only 173rd in the world by this criterion. However, if we consider the more accurate indicator of GDP per capita, Antigua and Barbuda’s position improves significantly. The jurisdiction would rank 51st, surpassing many other offshore jurisdictions.

Advantages of Antigua and Barbuda for business:

• modern, developed infrastructure;
• the opportunity to obtain citizenship through investment in Antigua and Barbuda; the established entry threshold allows foreigners with average (and not only high) income levels to participate in the CBI (Citizenship by investment) programme;
• Corporate legislation that has been developed and adapted to modern requirements.
• Low or zero taxes in Antigua and Barbuda.
• Political, financial and economic stability.
• A developed labour market with low (relative to European and Asian countries) wage expectations.
• Real estate in Antigua and Barbuda is a profitable investment.
• Focus on tourism and services stimulates overall economic growth.
• Simplified registration of offshore companies in Antigua and Barbuda with minimal formalities;
• There is the possibility of obtaining a “long-term” (10-year) business visa to the United States.

All these advantages are mainly aimed at the corporate segment and investors. Simplified bank account opening in Antigua and Barbuda is a more universal factor. Non-residents often encounter problems when accessing local financial services, and this applies to both individuals and legal entities. But by obtaining, for example, family citizenship of Antigua and Barbuda or opening a company here, you can easily become a client of a financial and credit institution.

Taxation of individuals

The offshore status of any jurisdiction often conflicts with trends towards transparency and the fight against various financial violations. To avoid problems with global regulators, the country’s authorities have abandoned the standard zero formula typical of the 1980s and 1990s. There are taxes in Antigua and Barbuda. However, in a number of cases, the system of benefits allows this restriction to be offset. Therefore, the jurisdiction is de jure considered a midshore, but in fact, Antigua and Barbuda is a pure offshore. Importantly, it complies with modern anti-money laundering requirements.

Criteria for granting tax resident status to individuals:

• actual residence in Antigua and Barbuda for at least 183 days in the reporting year;
• the centre of vital interests is located in Antigua and Barbuda;
• having a permanent registered address.

Tax planning in Antigua and Barbuda is based on the separation of the concepts of citizenship and tax residency. These are not synonymous, and this approach allows for effective personal and corporate financial optimisation while remaining within the legal framework.

There are no personal taxes for residents in Antigua and Barbuda:

• income tax;
• dividend tax;
• interest;
• royalties;
• receiving an inheritance;
• wealth;
• capital gains.

In fact, there are no personal income taxes in Antigua and Barbuda. There is an exception for non-residents — dividends, royalties and interest. In this case, there is a withholding tax liability, with a standard rate of 25%.

Taxes for residents and non-residents of Antigua and Barbuda:

• social security contributions;
• stamp duty and other taxes arising from transactions involving real estate or land;
• Sales tax on goods and/or services (ABST, Antigua and Barbuda Sales Tax), if annual income exceeds XCD 300,000.

Comparison of tax rates for residents and non-residents of Antigua and Barbuda:

The most important advantage of tax resident status is zero withholding tax. This makes it possible to implement projects related to asset protection in Antigua and Barbuda. A minor drawback of the jurisdiction is the limited list of countries that have signed bilateral double taxation agreements – double tax conventions. There are 12 of them, almost all of which apply to jurisdictions belonging to CARICOM (Caribbean Community). However, Antigua and Barbuda’s own tax incentives fully compensate for this.

Corporate taxation

The problem faced by most offshore jurisdictions in the early 2010s lies in the conflict between the trend towards transparency of financial flows and aggressive taxation methods. The only solution is the cautious and controlled integration of KYC/AML, FATCA and CRS into national legislation.

Corporate tax in Antigua and Barbuda is levied at a rate of 25%. This is a relatively low level; in many European jurisdictions, it is significantly higher. It may seem that such a level of income tax automatically makes business unprofitable, but this is not the case.

Investing in Antigua and Barbuda, in terms of business, is a promising project that offers a very low level of taxation. The secret lies in the fact that IBC offshore companies are legally entitled to a 50-year corporate tax exemption. In effect, this is classic tax-free status, but with a high reputation component and no problems with the FATF and OECD.

Conditions for applying the preferential regime:

• the income of a company registered in Antigua and Barbuda is received outside the jurisdiction and countries of the Caribbean region;
• commercial transactions cannot be conducted using the East Caribbean dollar.

Corporate taxes in Antigua and Barbuda:

• applicable taxes and fees: corporate, sales (ABST), real estate transactions;
• Taxes not payable by tax residents of Antigua and Barbuda: withholding tax on dividends, royalties and interest, capital gains tax, inheritance tax and wealth tax.

Main taxes in Antigua and Barbuda:

Additional information on corporate taxation of legal entities in Antigua and Barbuda:

• There are reduced income tax rates — 22.5% (banks, additional conditions apply) and 10% (insurance business, telecommunications, oil industry).
• Standard rate ABST (Antigua and Barbuda sales tax) : 15%
  hotel and restaurant business — 14%,
  in certain cases — 0%;
• property taxes (not only on purchase and sale, but also on ownership) are levied on all properties — residential and commercial — and are assessed on the basis of market value;
• withholding tax is levied only if a non-resident legal entity receives interest, dividends or royalties from a payer located in Antigua and Barbuda.

Choosing a business format when registering a company in Antigua and Barbuda

The incorporation procedure is simple, difficulties rarely arise and are most often related to mistakes made by the applicants themselves (incomplete set of documents, ignoring the registrar’s requirements). Foreign businesses in Antigua and Barbuda are regulated by the same rules that apply to national companies, with no restrictions on rights or opportunities. The actual status of a legal entity is determined by where control over the structure is exercised and decisions regarding business planning are made.

The standard legal forms for registering a company in Antigua and Barbuda are IBC (International Business Company) and LLC (Limited Liability Companies). Each format is designed to address specific tasks, although in some cases it is possible to use both types of companies.

Comparison of IBC and LLC:

Versatility in choosing an organisational and legal structure is possible, but not recommended. The format should be selected taking into account a number of key factors: type of business, ownership structure, objectives, confidentiality requirements, availability of tax planning tools.

Features of registering a legal entity

An offshore company in Antigua and Barbuda is an effective tool for doing business, protecting and diversifying assets, and investing. Immigration law provides for the possibility of obtaining a residence permit and citizenship, which makes commercial projects particularly attractive.

In most cases, company registration in Antigua and Barbuda is carried out remotely. The requirements are loyal, but all company officials will be checked in any case (KYC/AML procedure). The intricacies of tax optimisation and/or obtaining investment citizenship require careful preparation at the planning stage.

Recommended steps for starting a new business in Antigua and Barbuda:

• Choosing the appropriate legal form. Most often, foreigners choose LLC or IBC, but alternative options can be used to launch custom commercial or investment projects.
• Reserving a company name. The requirements are standard: uniqueness, consideration of existing copyrights, prohibition on the use of certain words. The reservation is made through the Financial Services Regulatory Commission (FSRC) of Antigua and Barbuda.
• Preparation of a package of documents. The minimum set includes the founders’ personal documents and the articles of association, plus the memorandum of association for an IBC and the operating agreement for an LLC. The documents must contain detailed information about the directors, shareholders, authorised capital and registered office.
• Submission of an application for company registration in Antigua and Barbuda. The typical processing time for an application is 3-5 business days. In rare cases, the registrar may request additional documents.
• Payment of registration fees. The specific amounts depend on the legal form of the company and the additional services selected.
• Registration with the tax authorities.
• Opening a corporate account. The bank must have a special licence to provide financial services specifically in Antigua and Barbuda.
• Obtaining licences. The list of permits depends on the business sector; in many cases, commercial activities can be started immediately.

Features of corporate regulation

Business in Antigua and Barbuda can be conducted in comfortable and safe conditions. The jurisdiction is well suited for launching commercial projects in any field of business, and developed asset protection tools and a high level of confidentiality simplify investment. The jurisdiction complies with FATF and OECD recommendations, and KYC/AML checks are mandatory when registering companies and opening bank accounts.

Additional information on registering a business in Antigua and Barbuda (some options are only available to IBC companies):

• a registration agent is required;
• nominee service is permitted;
• bearer shares and shares without par value are permitted; share capital may be reduced or increased after registration;
• the annual general meeting of shareholders must be held in Antigua and Barbuda; proxy voting is permitted;
• there are no currency controls or restrictions on capital withdrawal;
• if the company is not subject to mandatory licensing, it may not submit financial statements for offshore business;
• two founders who are citizens or residents of Antigua and Barbuda are required to register an international company;
• Redomiciliation in both directions is permitted.

It should be noted that the Antigua and Barbuda Citizenship by Investment Programme allows businesspeople and investors to participate in the project, making it one of the most popular immigration routes. However, even if a company is registered in accordance with corporate requirements, this does not grant the right to participate in the CBI. To do so, a contribution must be made to the National Development Foundation (NDF). However, you can conduct business in Antigua and Barbuda remotely or legalise your stay in the jurisdiction with a digital nomad visa (for example).

Citizenship by investment in Antigua and Barbuda

The opportunity to obtain a second passport without using traditional immigration routes is one of the key advantages of this jurisdiction. It is important to understand that citizenship cannot be “bought” — a background check will be carried out without fail. But as a result, you will receive a second passport from Antigua and Barbuda — a solid and respected jurisdiction in the Caribbean archipelago.

The main advantages of the CBI programme:

• visa-free entry to 150+ countries;
• you can obtain a long-term B1 or B2 visa to the United States for 10 years;
• simplified access to the opportunities offered by Antigua and Barbuda tax residency status;
• fast processing with minimal formalities;
• option of family citizenship of Antigua and Barbuda;
• no mandatory residency requirements;
• 4 investment options (CBI programmes in other countries are usually limited to two).

Basic requirements for the main applicant (these do not depend on the chosen investment route):

• age — at least 18 years old;
• Positive character reference;
• clean police record;
• Good health;
• assets sufficient to finance the chosen immigration route (the source of funds must be legal);
• Passing a rigorous background check.

Who is eligible for Antigua and Barbuda family citizenship (the main applicant has the right to designate dependent family members):

• husband, wife or partner;
• children under 30 years of age, if they are financially dependent on the main applicant;
• children with special needs (physical or mental disabilities), aged 18 and over;
• parents, grandparents (aged 55+, you can prove financial dependency);
• brothers and/or sisters (if they are not officially married);
• fiancé(e) of the main applicant;
• future father/mother of the main applicant’s child.

Citizenship programmes for investment in the national development fund, cost level:

Citizenship programmes for investment in real estate:

Citizenship by investment programmes:

Citizenship programmes for investment in the University of the West Indies (UWI) fund:

Comprehensive verification costs for any of the Antigua and Barbuda citizenship by investment options:

• $8,500 — main applicant;
• $5,000 — spouse;
• $2,000 for each dependent aged 12 to 17;
• $4,000 for each dependent over 18 years of age;
• $5,000 – benefactor.

General procedure for obtaining a second passport in Antigua and Barbuda:

• selection of an investment programme;
• preparation of a package of documents;
• submitting an application;
• passing a comprehensive check;
• obtaining approval and registering citizenship by investment in Antigua and Barbuda.

If all conditions are met, the likelihood of rejection is quite low. Most often, risks are associated with failure to meet investment requirements, incomplete documentation, or unsatisfactory results of a background check.

Who might be interested in Antigua and Barbuda offshore

Business in tax-free jurisdictions can be profitable and promising. The disadvantages of offshore companies are associated in public opinion with a high risk of financial and tax violations and money laundering. But if the company conducts transparent and legal business, there will be no problems.

In which cases will registering a company in Antigua and Barbuda be particularly advantageous:

• tourism;
• catering businesses;
• maritime and logistics services;
• yachting;
• participation in the citizenship by investment programme;
• agriculture, processing and export of agricultural products;
• investment in real estate in Antigua and Barbuda;
• outsourcing of key business processes (BPO, Business Process Outsourcing);
• virtually any cross-border business;
• asset protection in Antigua and Barbuda.

Conclusion, findings

Offshore jurisdictions in the Caribbean region have managed to maintain their appeal to business people and investors. Most island jurisdictions offer favourable conditions for doing business, operate citizenship-by-investment programmes, and provide tax incentives under their legislation.

The choice of a starting point for registering a company should be based on a comprehensive analysis of all the advantages and disadvantages of a particular jurisdiction. Typical projects in this area often show limited effectiveness or create potential risks, putting promising businesses in a state of uncertainty.

The offshore jurisdiction of Antigua and Barbuda meets all the expectations of businesspeople and provides them with the most comfortable conditions for work. It has well-thought-out and loyal legislation, a developed corporate services sector, and companies and their owners can legally save on taxes.

One of the most important advantages of the jurisdiction is zero income tax for IBC corporations. Therefore, when doing business in Antigua and Barbuda, you can significantly reduce the overall tax burden while avoiding the risks of using dubious optimisation schemes. Another important advantage is obtaining a “long-term” visa to the United States. A company registered in Antigua and Barbuda can become a starting point for entering the American market.

More detailed information on this topic is available during individual consultations. We successfully implement projects related to doing business in Antigua and Barbuda, obtaining citizenship there, and participating in the CBI programme. We offer only individual solutions that take into account all the specifics of each client’s case.