Real estate investment via second citizenship in Antigua and Barbuda

At AptCitizenship.com, we take pride in introducing discerning investors to the tropical paradise of Antigua and Barbuda, where owning a piece of paradise is more than just a dream – it’s a reality. This twin-island nation in the heart of the Caribbean offers an unparalleled opportunity for those seeking to invest in premium real estate and obtain coveted second citizenship through the prestigious citizenship by investment program.

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Key Facts:

The Antigua and Barbuda Citizenship by Investment Program

The Antigua and Barbuda Citizenship by Investment Program provides a sought-after path to alternative citizenship. By investing in approved real estate or contributing to the country’s National Development Fund, applicants can acquire the rights and privileges of Antiguan and Barbudan citizenship, including visa-free travel to nearly 150 destinations, the ability to live, work, and study in the country, and the opportunity to pass on citizenship to future generations.

Investing in Antigua and Barbuda’s real estate market

Antigua and Barbuda’s real estate market is a true gem in the Caribbean, offering a unique lifestyle experience for buyers seeking island living at its finest. From luxurious villas nestled along pristine beaches to chic boutique hotel suites in vibrant resort towns, the nation’s real estate offerings cater to a wide range of preferences and budgets.

The island’s breathtaking natural scenery, with its turquoise waters, swaying palms, and white sandy beaches, provides the perfect backdrop for a serene and luxurious island lifestyle. At the same time, Antigua and Barbuda’s stable economy, strong tourism industry, and welcoming environment for foreign investment make it an attractive destination for those seeking both a tropical haven and a savvy real estate investment opportunity.

Minimum investment requirements

To qualify for citizenship through the Antigua and Barbuda Citizenship by Investment Program via the real estate option, applicants must purchase a property valued at a minimum of USD 200,000 from one of the government-approved real estate developments. This investment can be made through sole or shared ownership, providing flexibility to cater to different investment goals.

Ownership structures

Antigua and Barbuda offers versatile ownership structures for real estate investors, allowing them to choose between sole or shared ownership of their desired property. Sole ownership provides complete control and exclusivity, while shared ownership can be an attractive option for those seeking a more affordable entry point or a diversified investment portfolio.

This flexibility in ownership structures accommodates diverse investment strategies and preferences, making it easier for investors to find the perfect real estate opportunity that aligns with their specific needs and goals.

Rental income potential

Beyond the allure of owning a piece of paradise, investing in Antigua and Barbuda’s real estate market also presents the opportunity for generating rental income. The island’s thriving tourism industry ensures a steady demand for vacation rentals, with residential properties typically yielding an annual rental income ranging from 2.5% to 5%.

This potential for passive income can provide an additional revenue stream for investors, while also offering the option to offset some of the costs associated with property ownership. With careful property management and a strategic approach, real estate investments in Antigua and Barbuda can be a lucrative source of income.

Additional expenses

Aside from the property’s purchase price, buyers should factor in the following additional expenses when investing in real estate in Antigua and Barbuda:

• Third-party legal transfer or closing fees: 1% of the purchase price
• Purchaser’s stamp duty: 2.5% of the purchase price
• Property management fees (if utilizing a professional management company)
• Maintenance and upkeep costs
• Utilities and other recurring expenses

It’s important to carefully consider and budget for these additional expenses to ensure a comprehensive understanding of the total investment required and to plan accordingly.

Tax implications

Rental income generated from properties in Antigua and Barbuda is subject to the ABST (Antigua and Barbuda Sales Tax) tax, which is levied at a rate of 15% for short-term rentals. Additionally, property owners are required to pay an annual property tax to the government, as assessed by the Inland Revenue Department based on the value of the property.

It’s advisable to consult with local tax professionals or relevant authorities to ensure compliance with the latest tax regulations and to explore potential deductions or exemptions that may apply to your specific situation.

Expected returns and potential benefits

While the real estate market in Antigua and Barbuda offers the allure of island living and a thriving tourism industry, it also presents attractive investment opportunities. Under normal market conditions, property investments can yield an estimated annual revenue of 2.5% to 3%.

However, it’s important to note that these returns can fluctuate based on various factors, including global economic conditions, tourism trends, and local market dynamics. A well-informed and strategic approach to real estate investment, coupled with professional guidance, can help maximize returns while mitigating potential risks.

Beyond the financial benefits, investing in Antigua and Barbuda’s real estate market also offers the unique opportunity to acquire citizenship through the Citizenship by Investment Program. This can provide access to a host of advantages, including visa-free travel to nearly 150 destinations, the ability to live, work, and study in Antigua and Barbuda, and the opportunity to pass on citizenship to future generations.

Frequently Asked Questions

This FAQ section covers various important aspects related to acquiring, owning, and investing in real estate in Antigua and Barbuda. Here’s the expanded version with additional questions and answers:

Are there any restrictions on the acquisition of real estate in Antigua and Barbuda by foreign buyers?

Foreign nationals require a non-citizen’s landholding license to purchase real estate in Antigua and Barbuda. However, this license is not required if the client is applying for citizenship through the country’s Citizenship by Investment Program by investing in one of the approved real estate developments.

How can immovable property in Antigua and Barbuda be acquired?

There are two main ways for foreign nationals to acquire immovable property in Antigua and Barbuda:

1. For non-citizens, a landholding license must be obtained from the government prior to purchasing real estate on the islands.
2. For those seeking citizenship, immovable property can be acquired through the Citizenship by Investment Program by investing the required minimum amount (currently USD 200,000) in an approved real estate development.

Does the applicant need to open a bank account to purchase property, and what is the procedure?

It is not mandatory for overseas investors to have a local bank account in Antigua and Barbuda to purchase property. However, once the property is acquired, it is highly advisable to open a bank account on the island to facilitate smooth transactions and business operations related to the property ownership.

The procedure to open a bank account typically involves providing standard documentation such as a valid passport, proof of address, and source of funds. Some banks may require additional documentation depending on their policies.

What kind of returns can be expected from property investment in Antigua and Barbuda?

Under normal market conditions, real estate investments in Antigua and Barbuda can generate an estimated annual revenue between 2.5% and 3%. However, it’s important to note that these returns can fluctuate based on various factors, including global economic conditions, tourism trends, and local market dynamics.

It’s worth mentioning that during the COVID-19 pandemic in 2020, the real estate market experienced challenges, and the expected returns may have been lower than average during that period.

How is rental income from properties in Antigua and Barbuda taxed?

Rental income generated from properties in Antigua and Barbuda is subject to the ABST (Antigua and Barbuda Sales Tax) tax. For short-term rentals, the ABST tax rate is 15%.

Property owners are advised to consult with local tax professionals or relevant authorities to ensure compliance with the latest tax regulations and to understand any potential deductions or exemptions that may apply to their specific situation.

What other immovable property-related taxes and charges are imposed in Antigua and Barbuda?

In addition to the rental income tax, property owners in Antigua and Barbuda are required to pay an annual property tax to the government. This tax is assessed and collected by the Inland Revenue Department based on the value of the property.

It’s also important to note that when purchasing a property, buyers are responsible for paying third-party legal transfer or closing fees, typically amounting to 1% of the purchase price, as well as the standard purchaser’s stamp duty of 2.5% of the purchase price.

Are there any holding period requirements for real estate purchased through the Citizenship by Investment Program?

Yes, there is a minimum holding period for real estate purchased through the Antigua and Barbuda Citizenship by Investment Program. Applicants must hold and maintain ownership of the qualifying property for a minimum of five years before being eligible for citizenship renunciation or resale.

Is it possible to obtain financing for property purchases in Antigua and Barbuda as a foreign buyer?

Yes, some local and international financial institutions may offer financing options to foreign buyers for property purchases in Antigua and Barbuda. However, the availability of financing and the terms and conditions may vary based on factors such as the buyer’s financial profile, the property being purchased, and prevailing market conditions. Prospective buyers should conduct thorough research and consult with financial advisors to explore available financing options and determine the most suitable approach for their specific circumstances.

Are there any zoning restrictions or regulations that foreign buyers should be aware of when purchasing property in Antigua and Barbuda?

Yes, Antigua and Barbuda have zoning regulations that govern land use and development. These regulations may impose restrictions on the type of activities allowed on certain parcels of land, including residential, commercial, agricultural, or mixed-use purposes. Foreign buyers should familiarize themselves with the applicable zoning laws and regulations in the areas where they intend to purchase property to ensure compliance with local requirements and avoid potential issues or penalties. Consulting with legal experts or real estate professionals experienced in Antigua and Barbuda’s property market can provide valuable guidance on navigating zoning restrictions and making informed investment decisions.

Contact AptCitizenship.com for Expert Guidance

At AptCitizenship.com, our team of experienced advisors is dedicated to guiding you through every step of the real estate investment and citizenship acquisition process in Antigua and Barbuda. We understand the nuances of the market and the program, ensuring a seamless and hassle-free experience for our clients.

To learn more about investing in Antigua and Barbuda’s real estate market and the Citizenship by Investment Program, or to schedule a consultation with one of our qualified advisors, contact us here.