Registering a Business in the Caribbean: Company, Taxes, Real Estate

The Caribbean islands have long attracted not only tourists but also entrepreneurs. Doing business here offers several advantages that most other countries cannot boast. The main benefits of the Caribbean include a simple registration procedure, easy administration, and low taxes on foreign income. The most popular islands are Saint Kitts and Nevis, and Antigua and Barbuda, due to their well-established investment programs. However, before investing in a company on the islands, it's essential to understand the nuances of the registration process there.

What type of company to choose?

For international investors, the Caribbean offers a special business form — the International Business Company (IBC), which operates similarly to a limited liability company. To register, the following conditions must be met:

• The company must have at least one director, who can be either a resident or a non-resident of the country where the business is registered. Even legal entities can act as directors.
• The company must have a founder (including legal entities), chosen from the shareholders. The share price is usually set at 1 USD, and specifying a nominal value when issuing shares is optional.
• The founder can simultaneously manage organizational relationships.
• When choosing a name, an abbreviation that indicates limited liability (Ltd, Inc) must be used.
• The company must have a registered office located in the country of registration. However, having a secretary or a physical office is not mandatory.
• The company’s authorized capital must be at least 50,000 USD, though there are no lower limits on issued capital.
• Trademark registration is possible and costs approximately 1,000 USD.
• Doing business with companies from other countries is not restricted.

How does the registration process work?

Opening a business in the Caribbean does not require the investor's physical presence. The necessary documents can be processed online by providing notarized copies. Within 2-10 business days, the company will be registered, and you will receive the company’s charter and other founding documents via mail.

Data protection

One of the key advantages of setting up a company in the Caribbean is the strong protection of business confidentiality. Information about registered firms is not available in public registries. Additionally, annual audits, financial reporting, and currency controls are not required, making it difficult for external parties to track company activities. Only the local registration agent holds the required information, which appeals to many foreign investors.

Taxes for businesses in Caribbean countries

Low government fees attract foreign investments just as much as data protection does. The preferential tax regime means companies only pay the main taxes, which include:

• Corporate income tax, ranging from 0% to 1%.
• An annual license fee is based on the company’s authorized capital.
• A government tax is just 300 USD per year.

By registering a business in the Caribbean, you won’t need to worry about paying:

• Capital gains tax or value-added tax (VAT).
• Stamp duties.
• Inheritance or gift taxes.

In some islands, land and real estate taxes are also non-existent or offered under favorable conditions.

Citizenship of Caribbean countries for business registration

Entrepreneurs can benefit from the tax advantages and global business opportunities by obtaining citizenship in one of the Caribbean nations. Obtaining a Caribbean passport through investment is relatively fast, thanks to the government programs available. Investors have various options, such as purchasing real estate, acquiring shares, or donating to the National Development Fund.

How much should you invest to get a passport?

The fastest way to obtain citizenship is by participating in one of the Caribbean investment programs. These programs also cover investors’ family members.

• In Saint Kitts and Nevis, a single investor can obtain citizenship by investing 400,000 USD in the economy. For family applicants, 150,000 USD is required, or the same amount can be donated to the National Fund.
• In Antigua and Barbuda, investors need to invest over 400,000 USD in real estate plus additional expenses. A family can contribute 100,000 USD towards real estate or the same amount as a donation.
• Grenada offers citizenship to solo investors for a real estate investment of 350,000 USD, or 200,000 USD for families.
• Dominica requires an investment of 200,000 USD in real estate, with an alternative of 100,000 USD as a donation.
• In Saint Lucia, the citizenship program costs 300,000 USD for single investors or 100,000 USD for families, with a donation option of 100,000 USD.

All additional due diligence and administrative fees are also applicable.

Costs for maintaining property in the Caribbean

A Caribbean passport has many benefits, and investment citizenship programs are popular. One of the most in-demand options is purchasing real estate. However, it is important to be aware of the ongoing costs for property owners.

Property taxes

Caribbean property taxes are low, generally not exceeding 5%. For example, in Saint Kitts and Nevis, the rate is just 0.002%.

Utility costs and insurance

Utility costs vary by country. In Grenada, for instance, expenses such as electricity, water, and internet can be as low as 83,000 USD, whereas in Saint Kitts and Nevis, they range from 200,000 to 260,000 USD per month. Property insurance typically amounts to about 0.2% of the property value.

Rental income taxes

Tax rates for rental income depend on whether the owner is a tax resident of the country:

CountryResidentNon-resident

Antigua and Barbuda No tax 20%

Grenada No tax 10-30%

Dominica No tax Up to 35%

Saint Kitts & Nevis No tax 10% for foreign income

Saint Lucia No tax 10-30%

Non-residents must obtain a tax identification number for paying taxes.