Effective Tax Rate on Rental Income
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Global Property Guide research
Nonresidents are taxed on their income from sources in Antigua and Barbuda. Married individuals are taxed separately.
Nonresidents are generally subject to final withholding tax at a flat rate of 20%.
Rental income earned by nonresidents is taxed at a flat rate of 20%, withheld by the tenant. In computing taxable income, income-generating expenses (repairs, utilities, loan interest on the property, and other expenses) and depreciation expenses (wear and tear charges) are deductible from the gross rent. The maximum depreciation rate for buildings is 2%.
Taxpayers cannot claim depreciation charges if there is already a loss on the gross income less income-generating expenses. Taxpayers also cannot claim depreciation charges for a property if the depreciation charge would exceed the difference between gross rent and total expenses (hence, creating a loss or negative income).
Capital gains are not subject to taxation in Antigua.
If a taxpayer earns capital gains regularly and frequently, the capital gains are considered as income from trade or business and taxed at standard income tax rates.
Nonresident individuals transferring property ownership in Antigua are subject to the land value appreciation tax levied at the rate of 5%. The tax base is the property’s selling price or market value less acquisition costs and improvement costs throughout the property’s holding period.
There are land taxes and property taxes in Antigua and Barbuda
Land tax is levied at Antigua and Barbuda, depending on the type and size of the property. For non-commercial properties, residential land is taxed at 0.20%.
Property tax is levied on all properties located in Antigua, but not in Barbuda. The taxable value is based on the property’s current construction replacement cost.
Property tax is generally levied at 1%. The applicable tax rates depend on the classification of the property; whether it is a residential property or commercial property. For non-commercial properties, residential buildings are taxed at 0.30%.
Income earned by companies is taxed at the standard corporate tax rate of 25%. Income-generating expenses are deductible when calculating taxable income.
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