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Antigua & Barbuda investment

Investment overview 

Antigua
 

The government of Antigua and Barbuda welcomes foreign investment and provides a hospitable environment and generous incentives to encourage such investment.

The government is keen to assure investors that their investments are secure and well protected. Therefore, investment protection agreements have been signed with the Federal Republic of Germany and with the United Kingdom. While the government intervenes in the economy as a regulator in some instances, the private sector is the dominant force in the economy.

The government and the ruling United Progressive Party (UPP) are committed to upholding the principle of free enterprise and this pledge is hared by the main political parties. Successive governments have respected the agreements and commitments made between previous administrations and investors. No investor has ever had assets nationalised or been forced to leave the island.

invUnder the island's constitution, property can only be nationalised in exceptional circumstances and even in such cases the country's constitution demands that fair compensation must be determined by an independent authority and must be paid promptly. This constitutional requirement is unusual in developing countries and casts Antigua and Barbuda in a very attractive light for investment.

The legal basis for Antigua and Barbuda's tax holidays for investors is codified on the Fiscal Incentives Act. The length of the 'holiday' depends on the amount of value added in Antigua and Barbuda.

The definition of local value added is the amount realised from the sales of the product over a continuous period of 12 months, minus: a) Cost of imported raw materials, components, parts of components, fuels and services;b) Wages and salaries paid to foreign nationals;c) Profits and dividends distributed to foreign nationals; d) Interest, management charges and other income payments to not-residents (including companies); e) Depreciation of imports of plant, machinery and equipment.The government offers numerous concessions to investors, particularly if the investment is substantial.

Typical concessions include:

  • Freedom from the payment of corporate tax on the profits arising out of the profitable operations of the company for a period of 15 years in the first instance which is eligible for renewal for a further 15 years;
  • Waiver of all import duties on consumption tax on the importation of materials and equipment used in the operations of the company;
  • Grant of an export allowance in the form of an extended tax holiday on the exportation of goods produced in Antigua and Barbuda.