Saint Lucia tax system in 2026

Saint Lucia tax system in 2026

Saint Lucia tax system in 2026

Saint Lucia combines attractive business opportunities with a strategic tax system that supports foreign investors. The country’s tax policies facilitate ease of doing business while maintaining equity for residents and corporations. Prospective investors or applicants to the Citizenship by Investment program benefit from understanding these regulations to optimize financial planning and secure long-term advantages.

Antigua and Barbuda relies on other sources of revenue such as the Value Added Tax (VAT), which is applied to goods and services at a standard rate, and property related taxes, including land tax and property fees which remain relatively low when compared to international standards. For businesses, the corporate tax system is structured to support economic growth, with competitive rates and incentives for sectors like tourism, real estate development, and international business.

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Saint Lucia tax system

Individual income tax / Personal income tax

Saint Lucia imposes income tax on both residents and non-residents, although the basis differs.

Residents: Individuals who reside in Saint Lucia for more than six months in a year are considered tax residents. Residents are taxed on worldwide income, including salaries, business profits, rental income, dividends, and other sources of earnings.
Non-Residents: Those who reside in Saint Lucia for less than six months or derive income only from the country are taxed solely on Saint Lucia sourced income.

For individuals seeking Saint Lucia citizenship through investment, it is important to note that tax residency is only established after spending a significant portion of the year in the country. Non-resident investors may structure their investments to minimize exposure to local income tax while still benefiting from the citizenship advantages.

Income up to XCD 10,000 is taxed at a rate of 10%, making it favorable for low-income earners.
Income between XCD 10,001 and XCD 50,000 is subject to a 15% tax rate, offering a moderate tax burden for middle-income individuals.
Income exceeding XCD 50,000 is taxed at a 30% rate, applied to higher-income earners in accordance with progressive tax principles.

Saint Lucia follows a progressive income tax structure, ensuring higher earners contribute a higher percentage while maintaining fairness across income levels. This tax framework supports predictable personal tax planning for residents, investors, and professionals considering relocation or long term residence.

Value Added Tax (VAT)

Value Added Tax (VAT) is one of the primary sources of revenue for Saint Lucia, applied to most goods and services.

Standard VAT Rate: Saint Lucia applies a Value Added Tax (VAT) of 12.5% on most goods and services.
Essential Goods Exemptions: To reduce the cost of living, basic food items are exempt from VAT.
Healthcare Exemption: Medical and healthcare services are VAT-exempt, ensuring affordability and access to essential care.
Education Services: Educational services are not subject to VAT, supporting learning and long-term human capital development
Financial Services: Banking and financial services are exempt from VAT, lowering transactional costs for individuals and businesses.

Input VAT Credit : Businesses registered for VAT can claim credits for the VAT paid on inputs used in producing taxable goods and services. This ensures that VAT is only effectively applied on the value added at each stage of production, reducing double taxation.

Property Tax

Saint Lucia levies property tax on the assessed value of real estate, which can vary depending on the property type and location.

Residential Properties: Tax rates are generally lower to encourage home ownership.
Commercial Properties: Higher rates may apply to reflect the potential for business revenue generation.

Certain categories of property, such as government-approved affordable housing or properties used for charitable purposes, may receive partial or full exemptions. Investors participating in Saint Lucia’s Citizenship by Investment program often purchase real estate. Understanding property tax implications helps plan the total cost of investment, including annual obligations and potential rental income taxes.

Withholding Taxes

Saint Lucia applies withholding taxes on certain payments to non-residents to ensure tax collection on income leaving the country.

Dividends: 15%
Interest: 15%
Royalties: 15 – 20% depending on the type of income and treaty arrangements

Saint Lucia has agreements with select countries to prevent double taxation, reducing withholding taxes for investors and facilitating international business.

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