Antigua & Barbuda Investment Income Guide: 0% WHT Dividends, Interest, Royalties 2026
Antigua and Barbuda applies a 0% withholding tax rate on dividends, interest, and royalties paid to both residents and non-residents. There is no separate tax on investment income at the recipient level. Combined with the territorial system (foreign investment income not taxed), Antigua is one of the most tax-efficient jurisdictions for investment income. Here is how investment income is taxed in 2026.
The taxation of investment income in Antigua and Barbuda is extremely favorable. The Income Tax Act does not impose withholding tax on most investment returns. Dividends, interest, and royalties paid to residents and non-residents are all subject to 0% WHT. Furthermore, under the territorial system, residents are not taxed on foreign-source investment income. This makes Antigua an exceptional jurisdiction for holding investments, managing IP, and receiving passive income. The Inland Revenue Department (IRD) administers withholding tax obligations. Cross-border tax guide →
Real-world example: An Antiguan company pays XCD 1,000,000 in dividends to a non-resident shareholder. WHT: 0% = XCD 0. The same company pays XCD 500,000 in interest to a foreign lender. WHT: 0% = XCD 0. An Antiguan IP holding company receives XCD 800,000 in royalties from abroad. Tax in Antigua: 0% (territorial system — foreign-source income not taxed). A resident individual receives XCD 200,000 in bank interest. Tax: 0%. Corporate tax overview →
Withholding Tax Rates on Investment Income
- Dividends — residents: 0% WHT
- Dividends — non-residents: 0% WHT
- Interest — residents: 0% WHT
- Interest — non-residents: 0% WHT
- Royalties — residents: 0% WHT
- Royalties — non-residents: 0% WHT
The 0% WHT rates apply to all types of investment income regardless of the recipient's residence status. This is significantly more favorable than most jurisdictions worldwide.
Double Taxation Treaty Network
Antigua and Barbuda's DTT network is primarily through the CARICOM Double Taxation Agreement. Given the domestic 0% WHT rates, treaty relief is generally not needed. Key treaty benefits include:
- CARICOM Agreement: Provides for reduced rates between member states (though domestic rates are already 0%)
- Limited bilateral treaties: Few bilateral DTTs exist outside CARICOM
Taxation of Other Investment Income
- Bank interest: Interest on savings accounts and deposits is not subject to tax for residents or non-residents
- Government bonds: Interest on Antiguan government securities is paid without deduction of tax
- Capital gains on investments: 0% CGT on all assets including shares, securities, and real estate
- Foreign investment income: Not taxable in Antigua under the territorial system
Compliance and Reporting
Since no withholding tax applies, there is generally no requirement for payers to withhold or remit tax on investment income. However, payers may have reporting obligations to the IRD. Recipients of investment income should maintain records for their own tax compliance, particularly for foreign tax credit purposes in their home country. The IRD may request information as part of international tax information exchange agreements.
Are dividends from Antiguan companies really tax-free?
Yes. Dividends paid by Antiguan companies to both residents and non-residents are not subject to withholding tax. The recipient does not pay additional tax on dividend income in Antigua.
Is foreign investment income taxable in Antigua?
No. Under Antigua's territorial tax system, foreign-source investment income (interest, dividends, royalties from abroad) is not subject to Antiguan tax. This applies to both resident and non-resident individuals and companies.