Saint Lucia operates a territorial based tax system where residents are taxed on their worldwide income, while non-residents are only taxed on local income. Please see tax rates below for natural persons and corporate entities.
Individuals
| Tax Type | Rate / Details |
|---|---|
| Personal Income Tax | Progressive rates up to 30%. Annual tax-free threshold of XCD 24,000, with additional personal allowances up to XCD 40,000. |
| Corporate Income Tax | 30% standard rate for resident companies. Non-resident branches may be taxed at 33.33%. |
| Value Added Tax (VAT) | 12.5% standard rate. A reduced 10% VAT applies to qualifying tourism services, including hotel accommodation and food & beverages. |
| Capital Gains Tax | 0%. No capital gains tax on individuals. |
| Property Tax | Residential property: 0.25% of open market value. Commercial property: 0.40% of open market value. |
| Real Estate Transfer Tax | Non-nationals pay a 10% property transfer tax. An Alien Landholding Licence fee of up to 7.5% may also apply when acquiring property. |
Property Tax
Property tax is paid on property owned by an individual or other legal entity for either residential or commercial purposes. Currently, residential property tax is an ad-valorem tax, which is proportionate to the estimated market value of the residential property. The tax is usually based on the value of the owned dwelling, in addition to the land.
| Classification | Rates |
| Residential Property | 0.25% of the Open Market Value |
| Commercial Property | 0.4% of the Open Market Value |
| Combination Property | Apply residential rate to residential portion and commercial rate to the business portion. |
Land Tax
| Classification | Rates |
| 10 acres or less | Nil |
| Over 10 acres but less than 50 acres | $0.25 per acre or part of an acre |
| 50 acres and over but less than 100 acres | $0.50 per acre or part of an acre |
| 100 acres and over but less than 500 acres | $0.75 per acre or part of an acre |
| 500 acres and over | $1 per acre or part of an acre |
CRS Tax Sharing
Saint Lucia enforces the Common Reporting Standard (CRS), a global tax transparency framework developed by the OECD. It requires local financial institutions to identify the tax residencies of their customers and automatically report foreign account information back to their home country’s tax authority.
IBC Companies
International Business Companies (IBCs) are generally exempt from local tax on foreign-source income and pay a significantly reduced or zero rate on local St. Lucian income, subject to certain conditions.
Corporate Tax Rates
| Corporate Tax Category | Tax Treatment in Saint Lucia |
|---|---|
| Capital Gains | No capital gains tax, except where gains form part of the company’s normal income-earning business activities. In such cases, the standard corporate income tax rate applies. |
| Dividend Income | Tax exempt. |
| Inter-company Dividends | Not subject to tax. |
| Interest Income | Subject to the corporate income tax rate. Exemption applies to income from securities issued by member governments of the Eastern Caribbean Central Bank and qualifying securities traded under the Securities Act by eligible OECS citizens, residents, and companies. |
| Royalty Income | Subject to the corporate income tax rate. |
| Rental Income | Subject to the corporate income tax rate. Rental income from qualifying residential accommodation may be exempt if regulatory requirements are met. |
| Foreign Exchange Gains/Losses | Realised gains or losses on trading transactions are taxable or deductible if settled within normal credit terms. Gains or losses on other instruments (including inter-company loans) are recognised only when realised. Unrealised exchange gains or losses are not taxable or deductible. |
| Bribes, Kickbacks & Illegal Payments | Amounts received are included in taxable income. |
| Foreign Income | Resident companies are generally not taxed on income deemed earned outside Saint Lucia. Foreign tax credits are available, subject to limits. Double taxation relief applies under CARICOM arrangements. Where no agreement exists, the foreign tax credit is limited to the lower of the foreign tax paid or the Saint Lucia tax payable on that income. |
| Tax Deferral | Not permitted. |
Tax Agreements
St. Lucia has signed tax treaties or Tax Information Exchange Agreements with 31 countries;
| Region | Countries & Territories |
|---|---|
| Caribbean (CARICOM) | Antigua & Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts & Nevis, St. Vincent & the Grenadines, Trinidad & Tobago |
| Europe | Belgium, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Iceland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, United Kingdom |
| Americas & Others | Aruba, Australia, Canada, Curaçao, United States |
Double Taxation
St. Lucia has a double taxation treaty with all CARICOM countries
FATCA
On March 18, 2010, the US Government enacted the Foreign Account Tax Compliance Act (FATCA) to fight tax evasion by US persons holding investments in accounts. By the new law, Foreign Financial Institutions (FFIs) in Saint Lucia will have to report to the US Internal Revenue Service, information on assets exceeding US $50, 000 being held by US Tax payers, on cash value insurance (that is long-term insurance) and annuity contracts held by individual account holders in excess of US $250,000, or by foreign entities in which US tax payers hold more than 10 percent ownership interest. If the FFI fails to submit this information it could result in a:
• 30 percent withholding tax levied on certain payments; and
• loss of correspondent banking relationships with US Banks.
