Taxes are an important subject with citizenship by investment . It is important to understand taxes is not based on citizenship. In most countries, taxation is based on residence (183 days a year) and not based on citizenship. Tax laws in most countries are extremely complex and varies for dual citizens.

We did a quick study on taxes that apply for CBI programs. Our findings are below with a quick summary…

  • St Kitts and Antigua are only three countries that have no personal income taxes on both local and foreign income. If you pursue a  passport that comes with no personal income tax, these tax free countries are the most desirable ones.
  • Vanuatu has zero corporate taxes.
  • Caribbean countries do not levy taxes on capital gains, wealth or inheritance. If you are a HNWI it is important to pick a country that has no wealth taxes
  • Montenegro has the lowest taxes in Europe.
  • Some of these countries are very appealing for fintech and cryptocurrency investors for giving them tax free perks

St Kitts and Antigua has no personal income tax on both local and foreign income. It is important to note many countries in the Caribbean will exempt you from personal income taxes ONLY if you are a non-resident citizen (residents are taxed). The other countries are ok and not as bad as you think.

Many of these countries have double taxation treaties and also a member of OECD 

Here is a quick comparison of how taxes apply in CBI jurisdictions

CBI Corporate Tax Personal Income Tax Wealth Tax Capital Gains Inheritance or Estate Tax Tax Treaties
Antigua 25.00% 0% 0 0 0 Caricom, UK
St Kitts 33.00% 0 0 0% (< 1yr) 0 CARICOM, Monaco, Switzerland, UK
Dominica 25.00% Residents only 0 0 0 Caricom
St Lucia 30.00% Residents only (upto 30%) 0 0 0 Caricom, Switzerland
Grenada 28.00% Resident/Non-residents income within Grenada (15%) 0 0 0 Caricom,UK
Vanuatu 0.00% Upto 17% 0 0 0 19 countries
Turkey 22.00% 15-35% yes 22.00% 1-30% 94 countries
Malta 35.00% Upto 35% 0 12.00% 0 76 countries
Cyprus 12.50% Upto 35% 0 20.00% 0 65 countries
Bulgaria 10.00% 10-18% + SS 0 0 0.4-0.8% 86 countries
Moldova 12.00% 12% + SS 0.80% 10.00% 0 50 countries
Montenegro 9.00% 9-12% 0 9.00% 5.00% 42 countries
Egypt 22.50% Upto 22.5% 0 0 2.50% 50 countries
Jordan 20.00% Upto 14% 0 0 (except company share sale or depreciable assets) 0 32 countries

Note:  SS is social security
Sources: Deloitte and other sources

Important: Please seek a tax advice from a qualified expert before you consider citizenship planning. The above information is general  compiled for knowledge purpose only.