Antigua & Barbuda Rental Income Guide: PIT Rates 0-12%, Deductions 2026
Rental income from property in Antigua and Barbuda is taxed as personal income at the progressive PIT rates (0%, 8%, 12%). Landlords can deduct expenses such as maintenance, management fees, insurance, and mortgage interest from rental income. Short-term rentals (Airbnb-style) are subject to the same rules. Here is how rental income taxation works in 2026.
Rental income taxation in Antigua and Barbuda is governed by the Income Tax Act. Rental income is included in the individual's total taxable income, subject to the progressive PIT brackets. The effective tax rate on rental income depends on the landlord's total income from all sources. The Inland Revenue Department (IRD) requires landlords to declare rental income. Given the low PIT rates (top rate 12%), rental income is tax-efficient compared to many countries. Personal income tax rates →
Real-world example: A landlord in St. John's earns XCD 60,000 per year in rental income from a vacation villa. Allowable deductions (maintenance, insurance, management): XCD 15,000. Net taxable rental income: XCD 45,000. This is added to other income. If this is the only income, PIT: 0% on XCD 36,000 = XCD 0, 8% on XCD 9,000 = XCD 720. Effective tax rate: 1.2% of gross rental income. Compare to the US where the same rental income would be taxed at marginal rates up to 37%. Property tax and transfer fees →
Taxation of Rental Income
- Residential rentals: Income from leasing residential property is taxed at progressive PIT rates (0-12%)
- Vacation rentals: Short-term tourist rentals (Airbnb, VRBO) are taxed under the same rules
- Commercial rentals: Income from commercial and industrial property is taxed at the same PIT rates
- Corporate landlords: Companies earning rental income pay CIT at 25%
Rental income is generally treated as passive income. Landlords with multiple properties and active management may be classified as business income, following the same PIT rates.
Allowable Deductions
Landlords can deduct the following expenses from gross rental income:
- Maintenance and repairs: Costs of keeping the property in habitable condition
- Management fees: Fees paid to property management companies
- Insurance premiums: Property insurance, liability insurance
- Mortgage interest: Interest payments on loans used to purchase or improve the rental property
- Utilities: Water, electricity, internet if paid by landlord
- Depreciation: Buildings may be depreciated at standard rates
- Professional fees: Legal and accounting fees related to the rental activity
- Annual property tax: The 0.5% annual property tax is deductible
Deductions must be supported by proper documentation (invoices, receipts, contracts).
Registration and Compliance
- Tax registration: Landlords must register as a taxpayer with the IRD if not already registered
- Rental contract: Written rental contracts are recommended
- ABST consideration: Residential rental is exempt from ABST. Commercial rental may be subject to ABST
- Annual filing: Rental income must be declared in the annual personal tax return filed by April 30
Is there a withholding tax on rental payments?
No. Rental payments from tenants to landlords are not subject to withholding tax in Antigua and Barbuda. The landlord is responsible for declaring and paying the tax on rental income.
Can rental losses be offset against other income?
Yes. If allowable deductions exceed rental income (creating a rental loss), the loss may generally be offset against other income in the same tax year, subject to anti-avoidance rules.