Top Caribbean Tax Havens

The British Virgin Islands

The British Virgin Islands (BVI) is a British Overseas Territory comprising four larger and more than 50 smaller islands.

There’s no personal income tax or corporate tax in the British Virgin Islands. What’s more, there is no capital gains tax, dividend tax or inheritance tax.

It’s common to incorporate a business or a family trust in the British Virgin Islands due to its strong confidentiality laws and minimal reporting requirements. In fact, it has one of the largest number of registered offshore companies in the world.

If you have employees in the BVI, you will pay social security contributions, payroll taxes and import duties.

The Cayman Islands

The Cayman Islands is another British Overseas Territory and a renowned tax haven. It comprises three islands: Grand Cayman, Little Cayman and Cayman Brac.

The Caymans have no personal income tax, corporate tax, capital gains tax, VAT, inheritance tax, property tax or withholding tax.

Some indirect taxes are charged, such as stamp duty, import duties and annual registration fees for businesses.

Starting a company in the Cayman Islands is a popular choice, not just for the tax benefits but also for its business-friendly laws. This is a route to permanent tax residency, which can eventually lead to British Overseas Territories citizenship.

The Bahamas

The Bahamas is a tropical paradise tourist destination, about 50 miles from Miami and one of the world’s best-known tax havens.

You can become a tax resident in the Bahamas by spending just 90 days there per tax year, provided you don’t spend 183 days in any other single jurisdiction.

Tax residents don’t have to pay personal income tax, inheritance tax or capital gains tax. A 15% corporate tax was introduced in 2024 for multinational enterprises (MNEs) earning more than US$850 million annually. VAT, property taxes, stamp duty and import duties apply.

The Bahamas doesn’t have double taxation treaties with other countries, though, so you’ll need to plan carefully to ensure another jurisdiction doesn’t tax you on your worldwide income.

Barbados

Barbados is located east of the Windward Islands.

There’s a non-dom taxation regime in Barbados, meaning foreign income won’t be taxed if not remitted into the country. Money remitted into the country or earned within Barbados will be taxed at a top rate of 28.5%.

To claim non-dom status, you’ll need to prove you have existing ties to your home country and that you have the intent to return there.

Corporate tax works under a progressive system, so you’ll pay a lower rate if you earn more. The lowest corporate tax rate is 1%.

St Kitts and Nevis

St Kitts and Nevis is a Caribbean nation comprising two islands. It’s a popular place to live, both for its stunning natural beauty and its affordable citizenship-by-investment program.

It’s also somewhat of a tax haven since there is no personal income tax or inheritance taxes. No capital gains tax is charged unless you sell an asset within 12 months.

St Kitts and Nevis tax residents pay corporate taxes on worldwide income, but non-tax residents only pay on income earned within the country.

You’ll become a tax resident by staying in St Kitts and Nevis for 183 days a year, having a registered address or a registered business within the jurisdiction.

Anguilla

Anguilla is another British Overseas Territory and one of the costliest places in the world to live, although its residents won’t have much of a tax liability.

There’s no income tax, no corporate tax, no capital gains tax and no estate taxes charged here.

There are a handful of ways to earn residency in Anguilla, although they each require a significant upfront payment.

Its Residency by Investment program requires a US$150,000 minimum investment to its Capital Development Fund, plus US$50,000 for each dependent. Alternatively, you can buy real estate worth at least US$750,000.

Its High Value Resident Program offers another route. To qualify, you’ll need to commit to at least five annual US$75,000 income tax payments and to invest at least US$400,000 in local real estate.

Dominica

Dominica is another awe-inspiring Caribbean island offering an eye-catching citizenship by investment program.

If you don’t want citizenship, there are several routes to long-term residency for entrepreneurs, retirees, or financially dependent applicants.

Dominica residents don’t pay personal income tax on worldwide income, and there are no capital gains or inheritance taxes.

If you want to start a business in Dominica, you may benefit from a 20-year corporate income tax holiday, depending on your chosen industry and its impact on the local economy.

If you would like to register a new license for an offshore digital bank in Dominica or get a citizenship and passport without an investment, please contact us.

Bermuda 

Bermuda is Britain’s largest and oldest remaining Overseas Territory, and it’s another significant tax haven to be aware of. In fact, Oxfam recently listed it as the world’s ‘worst’ tax haven. There’s no income tax, corporate tax, capital gains tax, withholding taxes or estate taxes. Businesses in Bermuda will have to pay payroll tax, customs and import duties and a corporate services tax.

There are several routes to establishing long-term residency in Bermuda, although only around 65,000 people live there.

The island is far more isolated from its CARICOM neighbours, although you can expect plenty of similarities in the climate and lifestyle.

St Lucia

St Lucia is another glorious Caribbean paradise that offers a citizenship-by-investment program. It’s available to anyone willing to donate US$240,000 to its National Economic Fund or invest US$300,000 in local real estate or local bonds.

St Lucia has a territorial tax system, meaning individuals and businesses that are tax residents are only taxed on income generated on the island. There are no capital gains, estate or dividend taxes.

You’ll need to stay on the island for 183 days per year to become a tax resident of St Lucia.

Grenada

Grenada consists of a main island and several smaller islands, the largest of which are Carriacou and Petite Martinique. Around 117,000 people live there.

You’ll pay no income tax on overseas income. There’s no inheritance tax, no capital gains tax. So, if your income is foreign-sourced, you could reduce your taxes to practically zero.

If you work in Grenada, locally sourced income is taxed at 10% or 28% of your total annual earnings.

Antigua and Barbuda

Antigua and Barbuda is a tax haven nation consisting of two Caribbean islands. Antigua is the larger of the pair.

The main appeal for tax residents is its 0% personal income tax rate. There are also no capital gains or estate taxes.

You can become a tax resident by qualifying through its citizenship-by-investment via a US$230,000 donation to its National Development Fund, although there are other options.

If you don’t want to make a large donation to gain citizenship, there are other ways to get permanent residency.

Turks and Caicos

The final British Overseas territory in our list, Turks and Caicos, is an archipelago consisting of 40 islands.

You’ll pay no personal income tax, no corporate tax, no capital gains tax, no property tax and no inheritance tax as a resident here.

You can gain residency by investing in a business or real estate worth US$250,000 in some areas and up to US$500,000 in more popular regions.

This is more affordable than many other residency-by-investment programs worldwide, and the tax exemptions and benefits could appeal to investors.

If you are interested in learning more about offshore digital banks for sale or would like to get citizenship and diplomatic passport from the Caribbean Islands, please send us an email to info@zorgworld.org