Taxation in Saint Lucia
Income Tax
Foreign property owners must pay income tax on any rental income they earn, but they do not benefit from standard personal deductions. Only the expenses relating to the property can be set against income, including interest payments. Couples cannot file jointly. The taxable income is then subject to the following progressive rates:
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TAXABLE INCOME, ECD (US$)
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MARGINAL TAX RATE
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Up to 10,000 (US$3,704)
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10%
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10,001 - 20,000 (US$7,407)
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15% on band over US$3,704
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20,001 - 30,000 (US$11,111
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20% on band over US$7,407
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Over 30,000 (US$11,111)
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30% on all income over US$11,111
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* Exchange Rate as of 15 June 2006: 1€ = YTL2.01
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Land and House Tax
Non-residents owning residential property are required to pay property tax at 5% of the annual rental value, as determined by the Inland Revenue Department.
St Lucia is a tax free Haven with no income tax, Vat or Inheritance tax. Also for retirees there is no tax on pension income at all.
As Tax laws change it is advisable to take expert taxation advice before Investing in this market.
Income Tax
Non-resident and non-domiciled individuals are not liable to income tax in St Lucia on their rental income.
Property Tax
Property tax is calculated as a percentage (currently 5%) of the property's annual rental value. The property's annual rental value is decided by the Department of Inland Revenue assessors.
Vendor's Tax
The vendor is liable to a vendor's tax of 10% of the sale proceeds upon sale. The solicitor will generally arrange for the vendor's tax to be withheld from the sale proceeds.
Capital Gains Tax
There is no capital gains tax in St Lucia as vendor's tax applies instead.
Double tax treaty
Ireland does not at present have a tax treaty with Saint Lucia.