The process of purchasing or selling property in Antigua and Barbuda involves several taxes and fees that the buyer and the seller must be aware of.
Property Tax
The buyer is responsible for paying property tax on the newly purchased property. Property tax in Antigua and Barbuda is based on the value of the property and is usually calculated as 1.5% of the assessed value. The property tax must be paid annually to the government and the amount may change each year.
Capital Gains Tax (CGT)
Capital gains tax (CGT) is levied on the sale of a property in Antigua and Barbuda. The tax is calculated based on the difference between the purchase price and the sale price of the property. The current CGT rate in Antigua and Barbuda is 25%.
Inheritance Tax
Inheritance tax is levied on the transfer of property ownership after the death of the property owner. In Antigua and Barbuda, inheritance tax is only levied if the estate is valued at more than EC$500,000 (approx. USD184,000). The inheritance tax rate is progressive, ranging from 0% to 25% depending on the value of the estate.
Gift Tax
Gift tax is levied on gifts of property in Antigua and Barbuda. The gift tax rate is based on the value of the gift and ranges from 0% to 25%.
Tax on Property Income
Antigua and Barbuda levies tax on rental income generated by properties in the country. The tax rate is based on the rental income and ranges from 0% to 25%.
Tax Advantages in Buying a House in Antigua and Barbuda
Antigua and Barbuda offers several tax advantages to property buyers. For example, property tax is based on the value of the property, so the amount of tax paid can be lower for properties with lower values. In addition, Antigua and Barbuda has a tax-free status, which means that property owners can enjoy lower tax rates or no tax at all on their property income. Additionally, the government of Antigua and Barbuda offers several investment incentives to property buyers, such as tax holidays and duty-free concessions, to encourage investment in the country.
For reliable, up-to-date information on taxes and fees involved in house purchasing/selling in Antigua and Barbuda, consult the Antigua and Barbuda Inland Revenue Department website: https://www.ird.gov.ag/.