Antigua and Barbuda is often called a tax haven because it charges no personal income tax, no capital gains tax, and no inheritance tax, and it exempts offshore companies from corporate tax on foreign-sourced income. For non-residents, that means assets and investment income held through Antiguan structures generate no local tax bill. For U.S. citizens and green card holders, none of that changes what you owe the IRS: worldwide income is still taxable at home, and Antiguan accounts trigger their own reporting rules with heavy penalties for missing them.
What Antigua Actually Taxes
Antigua abolished personal income tax outright, putting it among the small group of countries with no tax on individual earnings.1Inland Revenue Department. Tax Brackets Non-residents pay no local tax on worldwide income, investment returns, or inherited wealth. There is no capital gains tax and no estate or inheritance tax.
Corporate treatment splits along a clear line. Domestic companies operating inside Antigua pay a 25% corporate income tax. International Business Corporations that earn all their income outside the country are exempt, so offshore profits are effectively untaxed. Only Antiguan-source activity triggers the 25% rate.
Real estate is the one place a non-resident meets a tax on gains. Sellers of Antiguan real property owe a land value appreciation tax of roughly 5% on the increase in value, functioning as a substitute for a capital gains tax on real estate.
The Offshore Structures
International Business Corporations
IBCs are the standard vehicle. They must conduct business exclusively outside Antigua and cannot trade with residents or hold local real estate, a separation called ring-fencing. Formation is light: one director and one shareholder, who can be the same person, and no minimum capital. Directors and shareholders are not listed on any public register.
Because IBCs cannot earn Antiguan-source income, they sit outside the 25% corporate tax. They also pay no withholding on dividends, interest, or royalties paid to non-resident owners.
Trusts and Foundations
Antigua’s International Trust Act provides a trust framework with strong asset protection. The statute states that an Antiguan trust cannot be voided merely because a foreign court doesn’t recognize it or because it defeats claims that would exist under foreign law. Registered international trusts are exempt from Antiguan income, estate, and inheritance tax and from stamp duty on trust property.2UAIPIT. The International Trust Act 2007
International foundations offer a separate option. A foundation is its own legal entity rather than a relationship between settlor and trustee, and it combines features of trusts and corporations. Properly structured foundations for non-residents share the same zero-tax treatment on foreign income.
Offshore Banking
The Financial Services Regulatory Commission licenses Antigua’s international banks, which serve only non-residents and deal primarily in major foreign currencies.3Financial Services Regulatory Commission. About the Financial Services Regulatory Commission The FSRC requires each licensed bank to keep a physical office in Antigua with at least one full-time employee handling due diligence, which reflects international pressure against shell-only operations.
Transparency: Your Tax Authority Already Knows
The old assumption that offshore means invisible does not hold in Antigua. The country signed the Multilateral Competent Authority Agreement in October 2015, committing to the Automatic Exchange of Financial Account Information.4OECD. Signatories of the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information Under the Common Reporting Standard, Antiguan financial institutions collect and annually report account information for non-residents to the relevant foreign tax authorities.5Legal Affairs of Antigua and Barbuda. Resolution Ratifying the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information Reported data includes balances, interest, dividends, and proceeds from asset sales.
For Americans, the more direct pipeline is FATCA. Antigua’s intergovernmental agreement with the United States has been in force since 2017 and requires Antiguan financial institutions to identify U.S. account holders and report their account details to the IRS.6U.S. Department of the Treasury. Foreign Account Tax Compliance Act Antigua enacted domestic legislation giving the agreement the force of law.7Government of Antigua and Barbuda. Foreign Account Tax Compliance Act Implementation and Enforcement Act 2017 Economic substance rules and Financial Action Task Force anti-money laundering standards layer on further requirements: beneficial ownership disclosure, source-of-funds checks, and real operating presence for entities in banking, insurance, and intellectual property.
The tax rate stays zero. The privacy has narrowed. If you hold an account in Antigua and your home country participates in CRS or FATCA, assume your tax authority sees it.
What U.S. Taxpayers Owe and Must File
American citizens and resident aliens are taxed on worldwide income no matter where it is earned or held. Holding assets in Antigua does not change that.8Internal Revenue Service. U.S. Citizens and Resident Aliens Abroad All foreign income belongs on your U.S. return. Relief such as the foreign earned income exclusion (up to $132,900 for 2026) or the foreign tax credit applies only if you file a return claiming it.9Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
FBAR (FinCEN Form 114)
If your foreign financial accounts, including Antiguan bank accounts, brokerage accounts, and accounts held through IBCs, exceed $10,000 in aggregate value at any point during the year, you must file a Report of Foreign Bank and Financial Accounts with FinCEN.10FinCEN.gov. Report Foreign Bank and Financial Accounts The FBAR is due April 15, with an automatic extension to October 15.11Internal Revenue Service. Report of Foreign Bank and Financial Accounts (FBAR)
Penalties are the piece most people underestimate. A non-willful violation can reach $10,000 per account per year. Willful violations can reach the greater of $100,000 or 50% of the account balance at the time of the violation.12Office of the Law Revision Counsel. United States Code Title 31 Section 5321 – Civil Penalties A $2 million account with a willful violation can produce a $1 million penalty in a single year.
Form 8938
Form 8938 is separate from the FBAR and files with your tax return. For individuals living in the United States, the thresholds are $50,000 in total value at year-end or $75,000 at any point during the year for single filers, and $100,000 at year-end or $150,000 at any point for joint filers. The failure-to-file penalty is $10,000. If you still do not file after the IRS sends notice, an additional $10,000 accrues for every 30-day period the failure continues, up to $50,000 in additional penalties.13Office of the Law Revision Counsel. United States Code Title 26 Section 6038D – Information With Respect to Foreign Financial Assets
The FBAR and Form 8938 have different agencies, different thresholds, and different forms. Filing one does not satisfy the other. Many U.S. taxpayers with Antiguan accounts owe both.
A Second Passport Doesn’t End U.S. Tax
Antigua runs a Citizenship by Investment program that grants a passport through a qualifying contribution or investment.14The Citizenship by Investment Programme. The Citizenship by Investment Programme For U.S. taxpayers, this is worth naming only to close a common misconception: obtaining Antiguan citizenship on its own does not reduce U.S. tax. You remain subject to worldwide taxation as long as you hold U.S. citizenship or permanent residency, regardless of any second passport.15Internal Revenue Service. Reporting Foreign Income and Filing a Tax Return When Living Abroad