Taxes and Tax Schemes in Anguilla | What You Need to Know in 2025

Anguilla, a British Overseas Territory celebrated for its pristine beaches and luxurious resorts, is also known for its attractive tax regime. Located in the Eastern Caribbean, Anguilla has positioned itself as a prominent offshore financial center, attracting investors and expatriates with its tax-friendly policies.

Anguilla's economy is primarily based on tourism, offshore banking, and financial services. The territory has developed a sophisticated financial infrastructure while maintaining a straightforward tax system that appeals to international investors and residents alike.

The expat community in Anguilla is diverse, with many drawn to the island's combination of tax advantages, tropical lifestyle, and modern amenities. Major areas like The Valley, Sandy Ground, and Shoal Bay are particularly popular among expatriates, offering a blend of local charm and international standards.

Remember, tax laws can change, and individual circumstances vary. Always consult with a qualified tax advisor for personalized advice.

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Anguilla Income Tax

Anguilla's zero income tax policy is one of its most attractive features for international residents and investors. The territory has deliberately chosen not to impose any personal income tax, corporate income tax, capital gains tax, inheritance tax, or gift tax on its residents or businesses. This comprehensive tax-free environment has made Anguilla particularly appealing for remote workers and digital nomads who can base themselves on the island while working internationally. Retirees benefit from tax-free pension income, while business owners and international investors can operate without the burden of corporate taxation.

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Anguilla Tax on Overseas Income

Anguilla maintains a territorial tax system that provides significant advantages for international residents and businesses. Under this system, the territory does not impose any tax on worldwide income, foreign-sourced income, or overseas pensions and investments. Residents have no obligation to declare foreign income to Anguillian authorities, making the territory particularly attractive for international investors managing global portfolios. This system creates substantial benefits for retirees receiving pensions from abroad, digital nomads serving international clients, and business owners operating across multiple jurisdictions.

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Anguilla Tax on Investments

The investment landscape in Anguilla offers favorable treatment for various types of investment income. Residents enjoy complete exemption from taxation on interest earned, dividends received, investment gains, and rental income. However, property owners should be aware of certain obligations that do apply. Annual property taxes must be paid on real estate holdings, and those operating rental properties may need to obtain specific licenses. Additionally, properties used for tourism purposes are subject to particular regulations and licensing requirements that must be carefully observed.

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Anguilla Property and Land Taxes

While income is not taxed, Anguilla does maintain a property tax system. Residential properties are subject to an annual tax of 0.75% of the building value, while commercial properties face a slightly higher rate of 0.9%. Undeveloped land is taxed at 0.1% of its assessed value annually, and agricultural land may qualify for special rates depending on its use and location. These taxes help support local infrastructure and services while maintaining relatively low rates compared to many other jurisdictions.

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Anguilla Special Tax Regimes

Anguilla offers several special business structures and regimes:

1. International Business Companies (IBCs):
   • Zero corporate tax
   • Minimal annual renewal fees
   • Confidentiality provisions
   • No requirement for local directors
2. Limited Liability Companies (LLCs):
   • Flexible management structure
   • No public registry of members
   • Annual government fees apply
   • Suitable for international operations
3. Offshore Trusts:
   • Asset protection benefits
   • Estate planning advantages
   • No taxation on trust income
   • Confidentiality provisions

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Regional Comparison

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Tax Planning for Anguilla

‍Effective tax planning in Anguilla requires careful consideration of several key aspects. Residency planning should include obtaining appropriate permits and understanding minimum stay requirements, while also evaluating the impact on your home country tax status and ensuring adequate healthcare coverage. Business structure planning demands careful selection of the appropriate legal entity, consideration of international tax implications, and development of clear succession and exit strategies. Property investment planning must account for ongoing property tax obligations, maintenance costs, and potential rental income, while ensuring compliance with alien landholding requirements.‍

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Other Taxes in Anguilla‍

While Anguilla maintains its status as an income tax-free jurisdiction, several other taxes and fees do apply to residents and businesses. Import duties range from 0% to 25%, with essential items typically carrying lower rates and luxury items subject to higher duties. Certain exemptions are available for specific categories of imports. Stamp duty applies to property transfers at rates of 5% for locals and 12.5% for non-belongers, along with various document registration fees and transaction duties. The social security system requires contributions of 5% each from both employees and employers, subject to maximum contributable earnings limits.

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If you need to know more about Anguilla and its special tax system you can visit our Anguilla page.