St. Lucia Investment Income Guide: Dividends N/A, Interest 25%, Royalties 25% 2026
St. Lucia applies withholding taxes on investment income paid to non-residents: dividends are not subject to WHT (N/A), interest at 25%, and royalties at 25%. Residents are generally exempt from withholding tax on interest. CARICOM Double Taxation Treaties may reduce these rates. Here is how investment income is taxed in 2026.
The taxation of investment income in St. Lucia distinguishes between resident and non-recipient recipients. Residents are generally exempt from withholding tax on interest, while non-residents face withholding tax at rates specified in domestic law (subject to treaty reduction). Unlike many Caribbean neighbors, St. Lucia does not impose withholding tax on dividends paid to non-residents. The Inland Revenue Department administers withholding tax obligations — the payer is responsible for withholding and remitting the tax. Cross-border tax guide →
Real-world example: A St. Lucian company pays XCD 50,000 in dividends to a non-resident shareholder. WHT: XCD 0 (St. Lucia does not impose WHT on dividends). Interest of XCD 20,000 paid to a non-resident lender: WHT at 25% = XCD 5,000, net payment = XCD 15,000. Royalties of XCD 30,000 to a non-resident: WHT at 25% = XCD 7,500, net payment = XCD 22,500. If the recipient is resident in a CARICOM treaty country, the rate may be reduced. Corporate tax overview →
Withholding Tax Rates on Investment Income
- Dividends — residents: 0% WHT — dividends paid to St. Lucian resident individuals and companies are exempt
- Dividends — non-residents: 0% WHT — St. Lucia does not impose withholding tax on dividends
- Interest — residents: 0% WHT — interest paid to St. Lucian residents is exempt
- Interest — non-residents: 25% WHT — may be reduced under applicable DTT
- Royalties — residents: 25% WHT — domestic rate applies to residents
- Royalties — non-residents: 25% WHT — may be reduced under applicable DTT
CARICOM Double Taxation Treaty Network
St. Lucia's treaty network is primarily through the CARICOM Double Taxation Agreement. Treaties generally reduce withholding tax rates:
- Dividends: N/A domestic (0%), treaty rates not applicable
- Interest: Treaty rates typically range from 10% to 15% (compared to 25% domestic)
- Royalties: Treaty rates typically range from 10% to 15% (compared to 25% domestic)
Treaty benefits require the recipient to be the beneficial owner and provide a Certificate of Tax Residency from the treaty jurisdiction.
Taxation of Other Investment Income
- Bank interest: Interest on savings accounts earned by residents is not subject to withholding tax. Non-residents may be subject to 25% WHT
- Government bonds: Interest on St. Lucian government securities may be exempt for non-residents
- Capital gains on investments: 0% CGT on all investments for both residents and non-residents
Compliance and Reporting
St. Lucian companies paying interest or royalties to non-residents must withhold the appropriate tax and remit it to the IRD by the 15th of the following month. The payer must also file annual withholding tax returns. Recipients seeking treaty relief must provide a Certificate of Tax Residency and a declaration of beneficial ownership. Failure to withhold correctly results in the payer being liable for the unpaid tax plus penalties.
Are dividends from St. Lucian companies exempt for non-residents?
Yes. St. Lucia does not impose withholding tax on dividends paid to either residents or non-residents. This makes St. Lucia a favorable jurisdiction for repatriating profits compared to other Caribbean countries that levy dividend WHT.
What is the procedure for claiming treaty relief?
The non-resident recipient must submit a Treaty Relief Application to the St. Lucian payer, along with a Certificate of Tax Residency from their home country. The payer then applies the reduced rate at source. If tax has been over-withheld, the non-resident can file a refund claim with the IRD.