Antigua & Barbuda Island Taxes

1. Taxes, Fees & Costs of Ownership

One of the most important pieces of financial planning for any international property buyer is understanding the full cost of acquisition — not just the headline purchase price. In Antigua & Barbuda, transaction costs are material and must be modelled from the outset.

A. Acquisition Costs (One-Time)

Stamp Duty

Stamp duty is payable by both buyer and seller, but at different rates. Market guidance consistently references the following structure:

• ⦁ Buyer stamp duty: 2.5% of the purchase price
• ⦁ Seller stamp duty: 7.5% of the purchase price

Your attorney should confirm the current rate applicable to your specific transaction type, as the rate or its application can vary depending on the nature of the property, the purchase structure, and any applicable exemptions.

Non-Citizen Land Holding Licence Fee

The NCLHL fee is a government charge payable by the non-citizen buyer as part of the licence grant. The prescribed forms regulations confirm the application fee (EC$100) and published expedited processing fees, but the substantive licence fee is a separate and material charge. Market practitioners commonly describe this as a percentage of the purchase price. Your attorney must confirm the current rate applicable to your transaction — this is a significant cost and should be built into your total acquisition budget as a line item.

Legal Fees

Conveyancing legal fees in Antigua are typically charged as a percentage of the purchase price, though some attorneys charge time-based fees or negotiate a fixed fee for straightforward transactions. Expect fees for: conveyancing and contract preparation, NCLHL application handling, title search and registration, and any additional advisory work on purchase structure or corporate setup.

Valuation and Survey

An independent valuation is highly recommended for any significant purchase — particularly for older properties, hillside sites, or any property where the condition or structural integrity is uncertain. Hurricane resilience, roof condition, water ingress, and foundation integrity are all items a competent local valuer should assess.

Other Closing Costs

Allow also for: title registration fees, land registry charges, bank transfer and currency conversion costs (for international buyers), and insurance arrangement costs at closing.

Total Acquisition Cost Estimate

As a planning guide, buyers typically budget an additional 10–15% of the purchase price to cover all acquisition costs — stamp duty, licence fees, legal fees, valuation, and incidentals. For higher-value transactions, the percentage may be somewhat lower; for lower-value transactions, it may be higher. Always model the full cost with your attorney before committing.

B. Annual Ownership Costs

Property Tax

Antigua & Barbuda levies property tax under the Property Tax Act 2000. The tax is based on assessed (not market) value and classified by property type and use. Rates are generally described by market practitioners as modest by international standards, but the specific charge for your property depends on its assessed value, classification, and any applicable relief provisions. Your attorney or a local tax adviser should confirm the applicable rate and current payment position for any property you are purchasing.

Homeowner Fees (where applicable)

Gated communities, marina developments, and resort-managed properties typically charge annual maintenance or homeowner association (HOA) fees covering common area maintenance, security, amenities, and (in some cases) resort-level services. These can range from a few thousand dollars annually for basic gated communities to tens of thousands for resort-managed properties with high service levels. Always clarify fee structure and what it covers before purchase.

Insurance

Insurance is one of the most significant ongoing costs for Caribbean property owners, and in Antigua it deserves serious attention. Standard requirements typically include:

• ⦁ Budget hurricane insurance as a major ongoing annual cost line — for prime Out Island properties this can be material
• ⦁ Windstorm/hurricane insurance — essential in a named-storm exposure zone, and non-negotiable for any mortgaged property and strongly advisable for all
• ⦁ Property/building insurance covering fire, water damage, and structural loss
• ⦁ Contents insurance if furnishing a rental property
• ⦁ Liability insurance if operating as a short-term rental

Premium levels depend heavily on the age, construction type, and condition of the property — modern hurricane-rated builds with reinforced roofs typically attract materially lower premiums than older stock. Ensure you understand the windstorm deductible on any policy (these are typically a percentage of insured value, not a fixed amount, and can be substantial).

Utilities and Running Costs

Electricity costs in Antigua are higher than in most developed countries, reflecting the cost of island-based power generation. Properties with pools, air conditioning throughout, and appliance-heavy rental operations should budget accordingly. Water supply quality and reliability varies by location; many properties supplement mains supply with storage tanks and (in rural or hillside areas) rainwater catchment. Backup generator costs — capital and running — are relevant for serious rental properties.

Maintenance

Caribbean property maintenance costs are typically higher than equivalent properties in temperate climates. Salt air, humidity, UV exposure, and the aftermath of tropical weather events all accelerate the ageing of finishes, fixtures, and mechanical systems. For rental properties, maintaining a presentation standard that justifies premium rental rates requires ongoing investment. Factor in annual maintenance budgets — particularly for pools, outdoor furniture, and exterior finishes.