Understanding St Lucia Taxes: A Comprehensive Guide

I can confidently say that one of the most important factors to consider before moving abroad is taxes. From income tax to property tax, understanding the tax system of your chosen destination can make a significant difference in your financial planning.

In this article, we’ll be diving into the tax system of a hidden gem in the Caribbean – St. Lucia. As someone who has lived in St. Lucia for several years, I can attest to the fact that the island offers an incredible quality of life while also being tax-friendly for expats.

One unique aspect of St. Lucia’s tax system is its “Alien Landholding License” program, which allows non-nationals to purchase land without being subjected to property tax. This program can be a significant advantage for those looking to invest in real estate on the island.

Another benefit of living in St. Lucia is its flat income tax rate of 30%. This may seem high, but keep in mind that the island does not impose any capital gains tax, inheritance tax, or wealth tax.

It’s also worth mentioning that St. Lucia offers an attractive citizenship by investment program, which grants citizenship to individuals who invest a minimum of $100,000 in the country’s economy. This program can lead to significant tax benefits for those looking to establish residency in the country long-term.

Lucia’s tax system is designed to attract and retain foreign investment while also providing a high quality of life for expats. If you’re considering making the move to the Caribbean, St. Lucia should definitely be on your radar.

Is St Lucia a tax haven?

St Lucia is a beautiful island nation located in the eastern Caribbean Sea. Known for its stunning natural beauty, lush rainforests, and pristine beaches, it’s no surprise that St Lucia is a popular destination for tourists, expats, and investors alike. However, many people are also curious about the tax situation in St Lucia and whether it qualifies as a tax haven. So, let’s dive into the topic and find out the truth.

What is a tax haven?

A tax haven is a country or jurisdiction that offers individuals and businesses low or zero tax rates, strict bank secrecy laws, and a lack of transparency in its financial dealings. These locations are often used by individuals and corporations to avoid paying taxes in their home countries.

St Lucia’s tax system

St Lucia operates a territorial tax system, which means that taxes are only paid on income earned within the country’s borders. The tax rates in St Lucia are relatively low compared to other countries, with a top rate of 30% on personal income and 33% on corporate income. Additionally, there are several tax incentives and exemptions available for individuals and businesses, including a tax holiday for new investments and a range of deductions for certain expenses.

Is St Lucia a tax haven?

While St Lucia offers some tax advantages, it does not qualify as a tax haven. The government has taken steps to increase transparency in its financial dealings and is committed to complying with international tax standards. St Lucia is also a member of the Organisation for Economic Co-operation and Development (OECD) and has signed agreements for the exchange of tax information with several countries, including the United States, Canada, and the United Kingdom.

Benefits of St Lucia’s tax system

Although St Lucia is not a tax haven, its tax system still offers several benefits to individuals and businesses. The low tax rates and range of incentives make it an attractive destination for investors and entrepreneurs looking to start a business or invest in the country. Additionally, the country’s political stability, strong legal system, and English-speaking population make it an ideal location for international business.

How much tax do you pay in St Lucia?

St. Lucia is a beautiful island nation in the eastern Caribbean Sea that is known for its stunning natural beauty, vibrant culture, and welcoming people. If you are considering a move to St. Lucia, one of the things you will need to understand is the tax system in the country.

Types of Taxes in St. Lucia

In St. Lucia, there are several types of taxes that you may be required to pay:

  • Income Tax
  • Value-Added Tax (VAT)
  • Property Tax
  • Customs Duties
  • Excise Tax

Income Tax in St. Lucia

If you are a resident of St. Lucia, you will need to pay income tax on your worldwide income. Non-residents are only required to pay income tax on income earned within St. Lucia. The income tax rates in St. Lucia are progressive, meaning that the more you earn, the higher your tax rate will be.

The income tax rates in St. Lucia for the 2021 tax year are as follows:

Income Bracket Tax Rate
Up to XCD 18,000 0%
XCD 18,001 to XCD 30,000 10%
XCD 30,001 to XCD 60,000 15%
XCD 60,001 to XCD 120,000 20%
Over XCD 120,000 30%

It is important to note that there are certain deductions and allowances that can be made to reduce your taxable income. These may include things like charitable donations, pension contributions, and certain business expenses.

Value-Added Tax (VAT)

Value-added tax (VAT) is a tax that is added to the price of most goods and services in St. Lucia. The current VAT rate in St. Lucia is 12.5%. Some goods and services, such as basic food items and certain medical supplies, are exempt from VAT.

Property Tax

If you own property in St. Lucia, you will be required to pay property tax on the value of your property. The property tax rate in St. Lucia is 0.25% of the assessed value of your property.

Customs Duties

If you import goods into St. Lucia, you may be required to pay customs duties on those goods. The customs duty rates in St. Lucia vary depending on the type of goods being imported, but can range from 0% to 45%.

Excise Tax

Excise tax is a tax that is added to certain goods, such as alcohol and tobacco products. The excise tax rates in St. Lucia vary depending on the type of product, but can be as high as 200%.

Does St Lucia tax worldwide income?

If you are considering relocating to St. Lucia or are already an expat living there, you may be wondering about the country’s tax laws and whether or not St. Lucia taxes worldwide income.

Overview of St. Lucia’s Tax System

St. Lucia is a jurisdiction that operates on a territorial tax system. This means that only income earned within the borders of St. Lucia is subject to taxation. In other words, if you earn income from a source outside of St. Lucia, you will not be taxed on that income by the St. Lucian government.

Exceptions to Territorial Taxation

It’s important to note that there are some exceptions to St. Lucia’s territorial tax system. For example, if you are a resident of St. Lucia and you own a foreign company that generates income, that income may be subject to taxation by the St. Lucian government. Additionally, if you are a citizen of St. Lucia, you may be subject to taxation on your worldwide income regardless of where you live.

Investment Opportunities in St. Lucia

St. Lucia offers a number of attractive investment opportunities for both local and foreign investors. For example, the country offers a citizenship by investment program that allows foreign nationals to obtain citizenship in St. Lucia in exchange for a significant investment in the country’s economy. This program is particularly attractive to individuals who are looking to diversify their investment portfolio or who are interested in obtaining a second passport.

What type of taxes are in St Lucia?

St. Lucia is a beautiful Caribbean island with a growing economy and attractive investment opportunities. If you’re considering a move to St. Lucia, it’s important to understand the country’s tax system. Here is an overview of the main types of taxes you can expect to pay in St. Lucia.

Income Tax

St. Lucia’s income tax system is progressive, meaning that those who earn more money pay a higher percentage of their income in taxes. The tax rates range from 10% to 30%, depending on your income level. Non-residents are only taxed on the income they earn in St. Lucia.

Value Added Tax (VAT)

St. Lucia has a VAT system that applies to most goods and services. The current VAT rate is 12.5%. Some items, such as medication and basic food items, are exempt from VAT. If you’re a business owner, you may need to register for VAT and charge your customers accordingly.

Property Tax

Property owners in St. Lucia are required to pay an annual property tax. The tax rate depends on the value of the property and ranges from 0.25% to 0.5%.

Customs Duties

If you import goods into St. Lucia, you may need to pay customs duties. The rate depends on the type of goods you’re importing and can range from 0% to 45%. Some items, such as books and educational materials, are exempt from customs duties.

Capital Gains Tax

If you sell an asset, such as property or stocks, for more than you paid for it, you may be subject to capital gains tax. The rate is 10% for residents and 20% for non-residents, although there are some exemptions and deductions available.

The E-2 visa is a fantastic option for those looking to invest in the United States and live the expat life. By understanding the local customs and cultural events, expats can integrate into their new community and truly experience the American way of life. Additionally, the investment opportunities available through this visa provide a unique chance to grow wealth and create a new life abroad. However, it is important to keep in mind the legal aspects of visas and citizenship programs, as navigating these can be complex. With proper guidance and preparation, the E-2 visa can be an excellent choice for those seeking to start a new life in the United States.


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