Summary Guide
Overview
This document explains:
- Requirements to establish tax residency in Saint Lucia.
- Difference between Resident and Ordinarily Resident.
- Whether capital gains are taxable in Saint Lucia.
The guidance is based on the Saint Lucia Income Tax Act Cap. 15.02. It notes that the Citizenship by Investment Act No.14 of 2015 does not address tax residency or taxation.
Key Tax Advantages
| Benefit | Status |
|---|---|
| Capital gains tax | ❌ None |
| Inheritance tax | ❌ None |
| Dividend withholding tax | ❌ None |
| Dividend income tax | ❌ None |
| Interest on Saint Lucia bank deposits | Exempt |
| Interest on ECCB Treasury Bills | Exempt |
| Worldwide taxation | Applies only to ordinarily resident individuals |
1. Tax Residency Requirements
An individual is considered resident in Saint Lucia if any one of the following conditions is satisfied.
| Requirement | Description |
|---|---|
| Permanent Place of Abode | Permanent home is in Saint Lucia and the individual is physically present during the income year (subject to certain exceptions). |
| 183-Day Rule | Physically present in Saint Lucia for 183 days or more during the income year. |
| Consecutive-Year Rule | Presence during the current year together with the preceding or succeeding year qualifies under the 183-day residency rule. |
2. Permanent Place of Abode
The Income Tax Act does not define “Permanent Place of Abode.”
Instead, tax authorities may consider several factors.
| Factors Considered | Explanation |
|---|---|
| Length of stay | Intended and actual duration of stay in Saint Lucia |
| Home established | Whether the taxpayer has established a home in Saint Lucia |
| Overseas residence | Whether another permanent residence still exists abroad |
| Overseas connections | Bank accounts and durability of foreign associations |
| Activities | Nature of activities conducted while residing in Saint Lucia |
| Government notifications | Whether authorities were informed of permanent departure from another country |
| Family ties | Children’s education and family connections |
3. Tax Residency Categories
| Category | Tax Treatment |
|---|---|
| Ordinarily Resident (Permanent Place of Abode in Saint Lucia) | Taxable on worldwide income |
| Resident (Permanent Place of Abode outside Saint Lucia) | Taxed primarily on Saint Lucia-source income and certain foreign income remitted or connected to Saint Lucia |
Additional Notes
- No capital gains tax.
- No inheritance tax.
The document also notes that becoming tax resident in Saint Lucia does not automatically terminate tax residency elsewhere. Residency must always be determined based on the facts and circumstances of each jurisdiction.
4. Capital Gains Tax
Saint Lucia does not impose capital gains tax on most capital transactions.
Treatment by Asset Type
| Asset | Tax Treatment |
|---|---|
| Sale of tangible assets | No capital gains tax |
| Passive personal investment portfolio | No capital gains tax |
| Frequently traded investment portfolio | May be treated as trading income |
| Shares held by investment trading company | Trading profits taxable as corporate income |
| Real estate held through a Saint Lucia company | No capital gains tax on sale of property or shares |
Exception
If more than 75% of a company’s assets consist of real estate, stamp duty may apply on the transfer of shares.
5. Investment Income
Personal
| Income Type | Tax Treatment |
|---|---|
| Dividend income | Not subject to income tax or withholding tax |
| Interest income | Generally taxable |
| Interest from Saint Lucia bank deposits | Tax exempt |
| ECCB Treasury Bills | Tax exempt |
| Capital gains on passive investments | Not taxable |
Company
| Income Type | Tax Treatment |
|---|---|
| Dividend income | Not subject to income tax or withholding tax |
| Interest income | Taxable (net of allowable expenses) |
| Capital gains from trading portfolio | Subject to corporation tax |
6. Statutory Obligations
Once tax residency has been established:
| Requirement | Details |
|---|---|
| Annual Tax Return | Must be filed with Inland Revenue by 31 March each year for the previous calendar year |
| Tax Relief | Residents may claim eligible deductions including medical expenses, mortgage interest, home repairs and maintenance, where applicable |
Important Disclaimer
The advice:
- Reflects Saint Lucia law as of April 2021.
- Does not account for future legislative amendments.
- Considers only the Saint Lucia tax perspective.
- Independent tax advice should be obtained regarding the taxpayer’s home jurisdiction.
This document provides a concise overview of Saint Lucia’s tax residency framework and highlights why the jurisdiction is often considered attractive for investors and high-net-worth individuals seeking a tax-efficient residence.
