iGuide Antigua and Barbuda

Register your business

There are essentially three types of entities that can be registered in Antigua and Barbuda:

•   Corporate entities conducting business in Antigua and Barbuda are registered under the Companies Act of Antigua and Barbuda 1995. This legislation provides the option for an insolvent company to petition the court for protection from creditors while it undergoes restructuring. (Section 379 Subsection 1 (b) If you are considering starting a Company but are not sure what type of Company structure is right for you, or need advice about the implications, we suggest that you consult a lawyer. Additional information on Companies and an Attorney reference list can be found on the Antigua and Barbuda Intellectual Property and Commerce website.
•   Unincorporated business entities including sole trader/sole proprietorship, Partnership/Firm, Business by a Corporation and Business by Nominee/Trustee /Agent of a Foreign Firm are registered under the Business Names Registrations Act of 1989.
•  Entities conducting offshore banking, trust, insurance, betting or gaming activities and corporate management and trust services (international business corporations) are registered under the International Business Corporations Act. Offshore is defined as outside the CARICOM region.

Register a Domestic Private Company

A company is a legal person, separate from those who own or manage it. It is also known as a body corporate that is incorporated or continued under the Companies Act 1995, Section 543 (f).

What do I need to know when starting a Company?

Each person who intends to go into business must decide on the legal structure best suited to his or her needs. In choosing the best structure, you should consider your personality, the purpose of the enterprise, its intended size, management capability and statutory requirements for the several types of commercial enterprises there are.

What are the types of Companies that may be registered in Antigua and Barbuda?

·  For Profit Company:

a.  Private Company

b.  Public Company

·  Non-profit Companies

·  External Companies

Register a domestic limited liability company

Investors establishing a domestic limited liability company must follow these steps. It is recommended to use an attorney-at-law for this process.

An Overview of the procedures involved in the incorporation of a Company in Antigua and Barbuda

1. Search and reserve Company name

2. Retain a lawyer to prepare the incorporation documents

3. Register with the Intellectual Property and Commerce Office and receive the Certificate of Incorporation

4. Apply for a taxpayer identification number (register the company for taxes)

5. Register for VAT and obtain an ABST identification number (simultaneously with previous procedure)

5. Register for Medical Benefits at the Medical Benefits Scheme 

Register an unincorporated business

Expedited procedures exist for registering a business, defined as a sole trader, partnership (firm), trustee or agent for a foreign firm. For this, the Business Names Registration Act, 1989 applies.

Registration is carried out by the Office of Intellectual Property and Commerce and usually takes seven days. The business is required to register with the Inland Revenue Department and once operational, the entity must register its employees with the Social Security Board, Medical Benefits Scheme and the Board of Education.

Register an international business corporation

Special registration procedures are applicable to International Business Corporations (IBCs). The formation of an IBC is carried out by a licensed Corporate Management and Trust Service Provider (CMTSP). Thus individuals wishing to incorporate an IBC will first have to identify a CMTSP who will then initiate the process with the FSRC on behalf of the client. The client does not register the IBC directly with the FSRC. A list of the licensed CMTSPs is attached.

Investment concessions

Antigua and Barbuda provides a range of incentives for investors. These are detailed below.

Investment Authority Act Amended 2019

The Antigua and Barbuda Investment Authority may grant concessions as specified in the Amended Investment Authority Act 2019. The Amended Investment Authority Act 2019 and the updated Concessions Guide are attached.

Investors must apply to ABIA in order to avail of these incentives.

Small Business Development Act, 2007

The Small Business Development Act 2007 was passed to provide incentives in the form of concessions, technical assistance and credit guarantee to aid in the development of small businesses in Antigua and Barbuda. The following concessions are available to businesses registered as approved small businesses under the Small Business Development Act:

• Exemption from or reduction on payment of duty under the Customs Duty Act, 1993 on the importation or purchase of raw materials, building materials, furniture, fixtures, fittings, appliances, machinery, plant and equipment, and motor vehicles for use in the construction and operation of the business.

• Exemption from or reduction on payment of duty under the Customs Duty Act, 1993 on the importation or purchase motor vehicles for use in operation of the business.

• Reduction of property tax under the Property Tax Act (2000) of up to 75% percent in respect of land and buildings other than residential premises used in the operation of the business.

• Exemption from or the reduction on the payment of income tax under the Income Tax Act, Cap, 212 for a period not exceeding five years. After the end of the mentioned five-year period, a reduction of up to 10% of income tax payable on the income of the business for a specified period.

• Exemption from or the reduction on the payment of withholding tax under section 40 of the Income Tax Act, Cap. 212 for a period of up to three years

• Exemption from stamp duty on documents required for loans for the business or security for those loans

• Reduction of stamp duty payable under the Non-Citizens Land Holdings Regulation of up to 75% in respect of land and buildings other than residential premises used in the operation of the business

• The government will, as far as is feasible reserve at least 25% of the procurement of its goods and services for small businesses registered under the Act.

Investors must apply to ABIA in order to avail of these incentives.

Citzenship by investment

There are four types of investment which will qualify you for citizenship in the paradise islands of Antigua & Barbuda. As an applicant, you can choose between a contribution to the National Development Fund (NDF), to The University of the West Indies Fund, purchase property in a pre-approved real estate development, or invest in an approved business venture. As a candidate, you must be over 18 years of age, hold no criminal record and have excellent health.

The options are as follows:

CONTRIBUTION TO THE NATIONAL DEVELOPMENT FUND

The non-profit NDF was established to fund income-generating public sector projects, innovation in entrepreneurship and approved charitable investments. It is audited by an internationally recognized accounting firm and reports on its status are published each year.If this is your investment of choice, you are invited to contribute USD 100,000 to the NDF, which is a one-time contribution for a family of four. Processing fees will be applied as indicated below.

For a single applicant, or a family of 4 or less:

• USD 100,000 contribution

Processing fees: USD 25,000

For a family of 5 or more:

• USD 125,000 contribution

Processing fees: USD 15,000 for each additional dependent over four people

THE UNIVERSITY OF THE WEST INDIES (UWI) FUND

This investment option serves as a mechanism to finance the new University of the West Indies Five Islands campus. This contribution will also entitle one member of the family to a one year scholarship, tuition only, at the University of the West Indies.

For a family of 4 or more:

• USD 150,000 contribution

For a family up to 4:

• Processing fees: USD 25,000

• Processing fees: USD 15,000 for each additional dependent

INVESTMENT IN REAL ESTATE

You and your family can obtain citizenship by purchasing a property in Antigua & Barbuda. You may also benefit from rental revenue with this investment. To qualify for citizenship under this option, you must invest in a designated, officially approved real estate development worth at least USD 400,000. Until 31st October, 2019, two (2) applications from related parties can make a joint investment, with each applicant investing a minimum ofUSD 200,000 in order to qualify. All processing and due diligence fees remain unchanged.

You must own the property for a minimum of five years before selling it. 

Processing fees will be applied as indicated below.

For a single applicant, or a family of 4 or less:

• Processing fees: USD 50,000

For a family of 5 or more:

• Processing fees: USD 15,000 for each additional dependant

BUSINESS INVESTMENT

The Citizenship by Investment Unit (CIU) after consulting with the Antigua & Barbuda Investment Authority (ABIA) approves

businesses, whether existing or proposed, for the purposes of investment in business under the Citizenship by Investment

Program (CIP).

There are two business investment options:

• Invest at least USD 1,500,000 in a pre-approved business.

• Alternatively, at least two applicants can propose to make a joint investment in an approved business with a total investment of at least USD 5,000,000. Each investor must contribute at least USD 400,000 to the joint investment.

For a single applicant, or a family of 4 or less:

• Processing fees: USD 50,000

For a family of 5 or more:

• Processing fees: USD 15,000 for each additional dependant

Population

Antigua and Barbuda had an estimated population of 100,772 in 2022 of which 48 percent male and 52 percent female. The Labour force was estimated at 59,000 with an unemployment rate of about 10 percent.

Skills

The education system in Antigua and Barbuda is fashioned off the British model with more recent modifications. It is governed by the provisions of the Education Act 2008 which makes it mandatory for students ages 5-16 to participate in the educational process. The sector comprises Early Childhood, Primary, Secondary, Technical Vocational and Tertiary Institutions. It comprises a mix of Government and Private Institutions. 

The country has achieved the United Nations Millennium Development Goals of universal access to Primary and Secondary Education. Adult literacy is 99 percent.

Tertiary education is also provided, with the following institutions:

• Antigua State College (ASC)
  
• Antigua and Barbuda Hospitality Training Institute (ABHTI)
  
• Antigua and Barbuda International Institute of Technology (ABIIT)
  
• The University of the West Indies Open Campus
• The University of the West Indies Five Islands Campus

The Antigua State College offers associate degrees in the humanities, sciences, business and engineering. There is also a national scholarship system, which grants assistance to study in institutions in North America, the United Kingdom, Mexico, Cuba and China.

The Antigua and Barbuda Hospitality and Training Institute (ABHTI) offers associate degrees and certificates in several hospitality related fields including  Resort Management  Hospitality Management  Food and Beverage Management  Tourism Management  Culinary Arts.

The Antigua and Barbuda International Institute of Technology provides training leading to associate degrees in a range of business and technology areas. It has developed collaborative relationships with Pace University, Skidmore and Monroe College.

The University of the West Indies Five Island Campus became operational in August 2019 and offers baccalaureate degrees in three Schools - Humanities and Education, Management, Science and Technology and Health and Behavioral Sciences.

For expatriates, the Island Academy offers the International Baccalaureate curriculum.

Employment and contracts

Terms and conditions of employment may be changed with the agreement of the employee. In certain sectors, or where employees have requested union representation, terms and conditions are set and modified through collective agreement.

Employment can include a probationary period of up to three months. Beyond the probationary period, the notice period of termination of contract is the length of time between pay days, and does not need to exceed 30 days.

The Labour Code allows termination of employment for:

• economic reasons;
  
• performance reasons; or
  
• disciplinary cases.
  

Where termination is for economic reasons, severance pay of one day per month or major fraction thereof worked with that employer and any previous employer.

The Labour Commissioner ensures that the Labour Code is applied. This includes determining complaints of unfair dismissal. Should there be a disagreement between the employer and employee, either party can request intervention by the Labour Commissioner, who will try to settle the case amicably. If the Labour Commissioner doesn't succeed, the case is referred to the minister who may decide to refer the case to a hearing officer for a formal and biding decision.

The Labor Commissioner also settles disputes over labor abuses, health, and safety conditions. Workers have the right to report unsafe work environments without jeopardy to continued employment; inspectors then investigate such claims, and workers may leave such locations without jeopardy to their continued employment.

Please note the Amendment to the Labour Code in 2019 related to Fixed Term Contracts as attached below.

Wages

The table below shows indicative monthly wages paid by foreign investors.

The Department of Labour prescribes a minimum wage of EC$ 9.00 an hour, however, reference employers pay significantly more.

The work week is up to six days with a maximum of 8 hours per day.

Non wage benefits

Non-wage benefits provided by an employer

Social security and other contributions

Employers and in some cases employees are required to make contributions as described in the table below. Information on the different benefits is described below.

As described in the Get Started tab, businesses must register with each of these three schemes.

Further, within a week of employment starting, an employer is required to register their employee for each of the benefits.

Social security

Sickness benefit

Sickness benefit is not paid for the first three days of the medical certificate or for Sundays. However, if sickness reoccurs within eight weeks of initial illness, the benefit will be paid from the first day. Sickness benefit is 60% of the insured individual’s average insurable weekly earnings. (i.e. three calendar months immediately before illness, divided by the number of weeks worked). Sickness is paid for a maximum of 39 weeks of continuous illness, provided that there is a second medical opinion after 26 weeks.

Maternity benefit

Maternity benefit is paid for a maximum of 13 weeks, commencing as early as 6 weeks before confinement or as late as the week of confinement. Maternity is 60% of the insure individual's average insurable weekly earnings. The average insurable earnings is calculated by totaling the earnings in the 52 weeks immediately preceding the 6 weeks period before the expected date of delivery.

Age Benefit 

Age Benefit is a benefit payable to an insured person who has reached the age of 60 years and has satisfied the required contribution conditions. Age Benefit is either a pension or a grant.

Medical Benefits

The Medical Benefits Scheme (MBS) offers financial assistance and pharmaceutical supplies to qualified residents of Antigua and Barbuda. Beneficiaries are also entitled to refunds for services rendered through laboratory tests, x-rays, surgery, ultra sounds, electrocardiographs or similar services, hospitalization and drugs. The MBS also provides financial, managerial and medical supplies to the local hospital and health clinics. 

There are two groups of beneficiaries: 

Group I 

1. All persons who have paid contributions to the scheme for 26 weeks in any calendar year or in any period of 12 months.
2. Persons who are under the age of 16 years.
3. Persons who are permanently incapable of work by virtue of age.

Group II 

1. Persons certified by a medical practitioner to be suffering from any of the specified diseases. These persons are entitled to free medical benefits, including drugs, X-rays, laboratory tests, and electro-cardiograms and similar services. 

Medical benefits are provided to two categories of beneficiaries: 

Persons hospitalized

All beneficiaries hospitalized for any disease and treated in the general ward of the hospital are entitled to free medical services, including medical and surgical care and services, drugs, X-rays, laboratory tests, and electro-cardiograms and similar services. 

Persons not hospitalized 

Persons in Group I are entitled to free X-rays, laboratory tests and electro-cardiograms conducted at the Holberton Hospital. Where this treatment is not available at the hospital, and the beneficiary obtains the treatment elsewhere as a result, the beneficiary is allowed to claim the costs incurred. However, if the beneficiary elects to receive the treatment from a third party provider instead of through the Hospital, the amount reimbursed is limited to the fees regularly charged at the Hospital.

Board of Education

The Board of Education provides additional support to Antigua and Barbuda's education system. In doing so it provides the following benefits:

• Financial assistance, bursaries and scholarships for citizens and nationals of Antigua and Barbuda.
  
• Financing of textbooks.
  
• Payment of contributions to  the Caribbean Examination Council (CXC) on behalf of the Government.
  
• Payment of contributions  to the University of the West Indies (UWI) on behalf of the Government.
  
• Contributions to the  upkeep, maintenance and continuity of the Antigua State College (ASC)
  
• Maintenance of government school grounds maintenance.
  
• Provision and maintenance of equipment and computers to schools
  
• Provision of supplies to schools.
  
• Repairing and refurbishing of the physical school plants.

Work permits

Any employed or self-employed worker who is not a national of the Organization of Eastern Caribbean States (OECS), nor a resident (see below) requires a work permit to be employed or manage a business in Antigua and Barbuda.

Work permits are approved primarily by the Department of Labour.

In applying for a work permit, employers are required to demonstrate that having called for applications through the publication of a job vacancy, a suitable applicant could not be found locally.

In reviewing applications, the Department of Labour considers:

• whether the use of expatriate personnel is part of a human resources strategy in which the skills of local personnel are developed in order to assume such roles in the future;
  
• whether a work permit is required for key roles (such as CEO/general manager, finance director) or other roles; and
  
• whether the permit is for a temporary assignment or an ongoing one.
  

Once approved by the Department of Labour, the worker may travel to the country. If from a country not requiring a visa, the worker enters at the port of entry and obtains an entry stamp. If from a country requiring a visa, the worker applies online for a visa (address). 

Once in the country, the employer brings the passport to the Department of Immigration, along with a written undertaking to pay the worker's return ticket, and the passport is endorsed with a work permit of up to a year. The permit is renewable on a yearly basis.

The spouse of a worker receives an extension of stay in the passport, linked to the work permit.

Children of a worker must obtain a letter of enrolment from an educational institution in Antigua and Barbuda. This qualifies them for a student permit.

A foreign national may apply for residency if:

• they have independent means;
  
• are married to a local national; or
  
• have lived in the country for four years and can demonstrate that they intend to make the country their permanent home. This requires a letter to the Chief Immigration Officer setting out their ties to Antigua and Barbuda.
  

A CARICOM national, who is not an OECS national does not require a work permit if they have a university education. In this case, they can obtain a CARICOM Skilled National Certificate from the Department of Labour, either before or after entering the country, although preferably before. This certificate does not have an expiry date.

Electricity

The Antigua Public Utilities Authority is the sole utility company in Antigua and Barbuda providing electricity. The Electricity Business Unit is responsible for transmission, distribution and generation. Electricity is generated by diesel  and supplied by 115/230V Single phase and 120 to 480V Three Phase. Electricity supply is clean and generally reliable. The company is actively exploring alternative energy sources in its quest to supply lower cost electricity (see Renewable energy in the Growth sectors and opportunities tab).

Current installed capacity is 110 MW, with a total demand of 54 MW. However, distribution difficulties result in a lower effective capacity of 51 MW.

When applying for a new or temporary electricity service an application form must be completed, approved and stamped by the DCA before submitting it to APUA. Please note that four copies of the electricity form must be presented along with a valid photo ID, Certificate of incorporation, land title and a copy of a utility bill (if applicable)

Water

The Antigua Public Utilities Authority (APUA) provides potable water services to the nation of Antigua & Barbuda.  It executes this mandate through it management of the islands surface and groundwater resources in addition to several desalination plants ideally located around the island. 

Currently, on average, the nation of Antigua requires approximately 11 million imperial gallons a day. Daily production is now averaging 7 millions imperial gallons a day and this necessitates water rationing as a consequence of the 4 million imperial gallons a day deficit. It is to be noted that households are required by law to have water storage facilities as a prerequisite for building approvals. So a significant portion of the lower middle class to upper class families usually has constant water supply through cisterns and the installation of water pumps.

Three types of water sources are used in water production in Antigua; the sea, surface water and ground water. The sea is all around the Island, surface water is from rain which gathers in ponds and dams, and ground water from deep within the earth, accessed through wells. Owing to the severe drought conditions which have impacted Antigua over the last 3 years the largest surface water facility Pot Works Dam where the Delapps Water Treatment Plant is located has been out of commission.

The breakdown of the daily production is as follows:

Please note that the capacities listed are known as the “installed capacity” which is the maximum capacity possible once all conditions are favourable. Factors such as sea conditions and the age of the plant can affect the actually production capacity.

Reverse Osmosis Plants

• The APUA Crabbs RO Plant –  3.1 million imperial gallons
• The APUA Camp Blizzard Plant – 600,000 imperial gallons
• The Ffryes Beach Reverse Osmosis Plant – 600,000 imperial gallons
• The Pigeon Point RO Plant – 330,000 imperial gallons
• The Ivan Rodrigues RO Plant – 1.6 million imperial gallons
• The Fort James Plant – 500,000 imperial gallons

The Authority has already ordered a new Reverse Osmosis Plant with a capacity of 3 million imperial gallons per day to be located in Bethesda. One hundred and thirty million dollars ($130

million) has been invested in building out Reverse Osmosis (RO) plants

throughout the country.

Water Treatment Plants

• Delapps Water Treatment Plant – 1.5 million imperial gallons (out of service because of persistent drought conditions)
• Bendals Water Treatment Plant – 700,000 imperial gallons

Ground Water

• Well fields – 400,000 imperial gallons

 Producing water via reverse osmosis is a costly venture which requires a large amount of electricity. APUA relies on surface and ground water as much as possible given the inexpensive nature of its production. As a drought prone island, relying on surface and ground water often becomes difficult, and the government has therefore made a decision to meet the demand through reverse osmosis plants.

Barbuda has its own RO Plant for it’s water supply.

Water service applications can be obtained and on completion returned to any of the Authority’s business offices.  A site inspection by the Authority’s Planning Department follows and an estimate for the required work generated. Service installation follows on payment of the estimate.  The duration of the application/installation process is largely dependent on the quality of information available.  Paramount being poof of property ownership and project/development approval.

Telecommunications

Antigua presently has two undersea Fiber Optic Cables. Each cable system has bandwidth capacity in excess of 10 Gbps. The capacity capability on this network can support the entire Caribbean

The internet service providers in Antigua and Barbuda are the Antigua Public Utilities Authority (APUA) Inet, Digicel, Flow Communications and the Antigua Computer Technology Ltd (ACT).

Transport infrastructure

Road network

Antigua and Barbuda has 385 km of paved roads.

Airport

Antigua and Barbuda has one of the most modern international airports in the Caribbean. With a brand new terminal opened in August 2015 doubling the capacity of the previous terminal, the V.C. Bird International Airport is an important regional hub, and the largest gateway to the Eastern Caribbean.

The new terminal has 4 jet bridges, a modern baggage sorting and scanning system and efficient immigration processing times.

There are both direct and connecting flights to and from North America, Europe and the rest of the Caribbean.

Maritime

Antigua's main international port for cargo is the commercial pier at Deepwater Harbour in St John's. It has a draught of 35 feet. Facilities including container handling services. Offloading and customs clearance usually takes place within the day. Customs uses the ASYCUDA system. The Harbour is presently being redeveloped to the tune of US$90 million with funding from China Exim Bank. 

In addition to the commercial pier, Nevis Pier and Heritage Quay are designed to handle cruise traffic, receiving ships averaging 1,700 passengers. Construction of the 5^th Cruise Ship Berthing Pier is slated to be completed in November 2020. The Construction of the Pier is a part of a lease arrangement between the Government of Antigua and Barbuda and Global Ports Holdings

Transport costs

Indicative costs for freight transport by sea are below.

Other costs

For indicative purposes, a basket of goods and services that investors may face is included below.

Types of land

Land is either owned by the Government or privately. In Antigua, the Government owns 55 percent of land in Antigua, with the remaining 45 percent private. In Barbuda, land ownership is prohibited. The Lands Division in the Ministry of Agriculture, Lands and Fisheries is the custodian of crown lands on behalf of the Government.

Acquisition procedures

An investor can lease or buy land from the government or the private sector. Land sold to non-citizens is subject to the Non-Citizen Land Holding Regulation Act that makes provisions for the buyer to obtain a license to purchase land (see Taxes tab). It is advised that the buyer consult with a local attorney.

Acquiring land from the Government through leasing or buying, either by citizens or non-citizens, is always conditional on approval of a proposed project by the line ministries and the Cabinet. This is because the Government has an unwritten policy of only divesting itself of land if it leads to the development of a specific project. 

The Land Registry's involvement in the acquisition of government land occurs once the stamp duty (see Taxes tab) has been paid on the Instrument of Transfer and the Chief Surveyor has signed the certificate contained in the said instrument confirming that boundaries have been verified or authenticated. There is a EC$30 administration fee for the processing of an instrument of Transfer filed within three months of the date of signing, rising in EC$30 increments  thereafter for each three month period to a maximum of EC$150.00. 

The turn-around time for the registration for an instrument of transfer and the issuance of a Land Certificate varies between 5 to 10 working days.

Land costs

Indicative land costs are displayed below.

Construction permit procedures

Construction permits are provided by the Development Control Authority.

The first step is to submit a concept drawing. The DCA checks whether it suits the land use and provides an approval in principle. A non-Antiguan will also need to provide an Alien Land-holder Certificate and a copy of the land register.

However, if the development falls under the Third Schedule of the Environmental Protection & Management Act 2015 or is likely to have a significant impact on the environment, then the file is referred to the Department of Environment for its advice (see next section). The Department of Environment may return terms of reference for environmental impact studies to be prepared and submitted at the following stage.

Depending on the nature of the development it may also be referred to the Central Board of Health (for waste water issues), the National Parks Authority (if sited in a national park) or Cabinet (if a large development) for their advice before an approval in principle is provided.

The next step is for the developer to prepare the detailed drawings and plans and submit them along with any required environmental impact studies.

Depending on the nature of the development, the file is referred to a number of public bodies, including the Department of Environment (for an audit of the environmental studies), the National Parks Authority (if sited in a national park), the Central Board of Health, the Fire Department, and if a jetty is involved, the Department of Marine Services, Fisheries Division, Department of Agriculture (as the sea is crown land) and the Port Authority.

Depending on the complexity of the development, the approval process can last from two weeks to significantly longer - this is especially the case when environmental studies are involved.

At the end of the review, and if successful, the Development Control Authority provides a clearance to begin construction, which includes a Commencement Permit. There may be conditions attached from the various public bodies consulted, including the Department of Environment.

The Development Control Authority sends inspectors at every phase of construction. At completion it certifies the development with a Completion Certificate, which allows use and occupation.

The Development Control Authority is in the process of developing an Online Application Portal which is expected to significantly enhance the approval process.

Environment impact assessment

As part of the construction permit procedure, most developments will require an environmental impact assessment (EIA). This applies to developments of the following types:

A hotel or resort complex

•  An airport, port or yacht marina
  
•  A power plant
  
•  A crude oil or refinery facility or a petroleum and natural gas storage and pipeline installation;
• An incinerator, sanitary landfill operation, solid waste disposal site, sludge disposal site, toxic waste disposal site or other similar site;
•  A wastewater treatment, desalination or water purification plant;
•  An industrial estate development project;

A full list is in the Third Schedule of the Environmental Protection & Management Act 2019 (attached). In such cases, the Development Control Authority will refer the concept drawings to the Department of Environment before providing an approval in principle

The Department of Environment will come back within a 2-3 week review period with possible terms of reference for an EIA and, where necessary, related studies - this is particularly the case with regards to coastal tourism developments, where impact on coastal erosion and marine life needs to be considered. The studies will cover environmental aspects, and in certain cases, socio-economic aspects, such as access to farm land, beaches or public spaces, or the impact of the project on local operators. Developers should be aware that the time taken to complete certain studies, especially those related to coastal erosion, could take up to a year.

The terms of reference will be provided to the developer by the Development Control Authority when it delivers an approval in principle.

The developer carries out the studies requested, through a qualified private consultant of their choice, and returns the studies through the Development Control Authority to the Department of Environment at the same time that it submits the detailed drawings. The Department of Environment's role is then to audit the studies and provide recommendations to the Development Control Authority on whether or how the proposed project may be improved.

Where the Department of Environment has concerns about a developer's willingness to abide by the recommendations it provides, it may require a payment of a performance bond. A developer may also be required to provide monthly progress reports to the Department of Environment during construction, and six-monthly or yearly once the development is completed.

Free trade and processing zone

The free trade and processing zone, located near the airport in the North-East of the island, was set up to help diversify the country's economy by attracting investment in a broader range of sectors for the purpose of increasing the export of goods and services.

The FTPZ Commission is responsible for licensing businesses to operate and is set up to run as a private enterprise. Investors must apply directly to the commission or a license.

Current clients include the American University of Antigua (on-site) and a number of interactive gaming firms (off-site).

To operate in the zone a business must:

• Engage in commercial or industrial activity for export outside CARICOM. Goods sold in Antigua, where authorized, are considered as having been imported from outside CARICOM.
  
• Be physically present in the zone.
  
• Be licensed as an International Business Corporation (see Get started tab).
  
• Employ at least three citizens of Antigua and Barbuda for each foreign worker.
  

The zone has over 100 acres of land available, ready for use, with fibre optic cable, roads and other utilities. A bus route runs by the zone, enabling travel for local employees.

The fiscal benefits of operating in the zone include:

• The zone license is replaces the various sectoral licenses that would be necessary outside the zone.
  
• Exemption from government taxes or levies on the activity being carried out.
  
• Exemption from import taxes and duties for machinery, equipment, spare parts, construction material and other items needed to construct and operate facilities in the zone.
  
• Exemption from duty and other taxes on the importation of raw materials and other input goods.
  
• Exemption from income and other taxes other than social security payments, medical benefit contributions and education levy for employees.
  
• Exemption from export taxes and levies
  
• Exemption from taxes on the repatriation of profits.
  

Other benefits include:

• Expedited clearance through customs.
  
• Expedited handling of work permit applications.
  
• Connection to the more reliable airport electricity grid.

Tax introduction and registration

A newly registered business entity must apply for a taxpayer identification number and ABST number from the Inland Revenue Department. Registration is also required for the Medical Benefits Scheme, the Social Security Board and the Board of Education (see Labour tab).

The fiscal year is the calendar year, but a different cycle can be requested. The taxable basis is income earned in Antigua and Barbuda. Companies that can be taxed include those incorporated in Antigua and Barbuda or external companies doing business there.

A number of incentives exist (see Get started tab).

Corporate income tax

Corporations should pay corporate income tax (CIT) in monthly installments based on the amount of taxes assessed the previous year. CIT is paid on the chargeable income of a corporation, which is derived by adding expenses not allowed and deducting allowances to be granted to the new profit of a Company. The corporate income tax rate is levied at 25%.

The Companies Amendment Bill 2020 was passed by both Houses of Parliament in July. The legislation provides the option for an insolvent company to petition the court for protection from creditors while it undergoes restructuring.

Unincorporated Business Tax

The Unincorporated Business Tax is levied on the chargeable income (net income) of an unincorporated business. A business under this Act includes any business, profession, trade, venture or undertaking for the provision of personal services or technical and managerial skills, and also includes any adventure or concern in the nature of trade and property rental.

Antigua and Barbuda Sales Tax (ABST)

ABST is a value added tax on consumption; it is imposed on the selling (buying price + mark-up) of goods and services. The rates are indicated below. The minimum threshold is EC$300,000 in taxable activities per year.

Withholding taxes

Withholding taxes are levied on non-resident corporations and individuals where they are receiving income in the form of dividends, preferred share dividends, interest and rentals, management fees, and royalties, as well as on interest on bank deposits to non-resident corporations

Custom duties

The Customs Division levies a number of taxes. They are:

• Import duty: Imposed on an assortment of goods. The rates vary and are taken directly from the harmonized system (HS). A list with some goods and their current rates is attached.
  
• Environmental protection levy: Imposed against various goods at different rates. The full list is attached below.
  
• Throughput levy: Charged in relation to oil. The rate is calculated as ten cents ($0.10) per Imperial Gallon.
  
• Revenue recovery charge: A fixed rate of 10% on all goods.
  

• Goods coming from a CARICOM country are exempted from import duty.
  
• Importers may, once approved, store imported goods in a bonded warehouse under a suspense warrant for up to two years, after which all goods are to be duty paid, exported or re-warehoused as prescribed by law.
  

Property taxes

This tax is charged on land or land and buildings, based on market value. Rates differ depending on the use of the property. Allowances and rebates also apply.

Non-citizens who do not develop their land face a non-citizens undeveloped land tax.

Stamp duty and other taxes on transfer of property or shares

The buying and selling of property and shares incurs stamp duty, payable by both buyers and sellers.

In addition, non-citizens must acquire a non-citizen license in order to buy a property, a process that takes three to six months.

Non-citizens selling their property must pay a land appreciation tax on the difference between the buying and selling price of their property.

Licenses

Taxes apply for certain licenses. A full list is attached.

Double taxation agreements and tax information exchange agreements

Legal framework

Antigua and Barbuda bases its legal system on the British common law system. The Attorney General, the Chief Justice, Puisne Judges, and Magistrates administer justice in the country. An appeal may be taken to the Eastern Caribbean Supreme Court’s Court of Appeal, and the final court of appeal for Antigua and Barbuda is the Judicial Committee of the Privy Council in the United Kingdom.

The Caribbean Court of Justice (CCJ) is the regional judicial tribunal, established in 2001 by the Agreement Establishing the Caribbean Court of Justice. The CCJ has original jurisdiction to interpret and apply the Revised Treaty of Chaguaramas. In its appellate jurisdiction, the CCJ considers and determines appeals from Member States of CARICOM, which are parties to the Agreement Establishing the CCJ. Antigua and Barbuda is subject to the original jurisdiction of the CCJ.

Investment protection

Antigua and Barbuda has certain legal and treaty measures that exist to provide protection. These are described below.

The Government treats foreign and local investors equally with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investment in its territory.

Expropriation

The Investment Authority Act of 2006 states that any nationalization, expropriation or indirect measures having an equivalent effect will be carried out in a non-discriminatory manner, for the public good and in accordance with due process of law. It will be accompanied by prompt, adequate and effective compensation. Calculation of compensation is based on fair market value immediately before the expropriation or before the impending expropriation became public knowledge. Compensation must be paid in convertible currency and can be freely transferred.

Dispute settlement

Antigua and Barbuda is a member of the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), meaning that arbitral awards relating to foreign investments are legally binding and enforceable.

The country has also signatory to the Multilateral Investment Guarantee Agency (MIGA). This membership in MIGA allows direct foreign investment into the country to be eligible for the Agency’s investment guarantees. Investors from Antigua and Barbuda going into MIGA’s other developing member countries may also receive coverage for their investments.

Investors are free to use national or international arbitration with regards to contracts entered into with the state. Further, access to international arbitration is provided for under Antigua and Barbuda's bilateral investment treaties. International arbitration awards are enforceable by the High Court of Antigua and Barbuda.

International or national arbitration may also be selected if specified in contracts between private parties.

Investors also have access to Antigua and Barbuda's legal system, which is based on the common law tradition. If both parties agree, cases in front of the court can be moved to arbitration as per the Arbitration Act 1975.

International investment agreements

Antigua and Barbuda has bilateral investment treaties (attached below) with:

• United Kingdom (1987)
• Germany (2000)

Investment provisions are also contained in a number of CARICOM trade agreements (see the Growth Sectors and Opportunities tab).

Repatriation of funds

Companies registered in Antigua and Barbuda have the right to repatriate all capital, royalties, dividends and profits free of all taxes or any other charges on foreign exchange transactions. Withholding taxes are levied on non-resident corporations and individuals where they are receiving income in the form of dividends, preferred share dividends, interest and rentals, management fees, and royalties, as well as on interest on bank deposits to non-resident corporations. One must be on the island for 180 days to be considered a resident. Antigua and Barbuda is a member of the Caribbean Financial Action Task Force (CFATF).

Intellectual property

Antigua and Barbuda has a wide legislative framework with respect to the protection of intellectual property rights, on trade marks, copyrights, industrial designs and geographical indications. Intellectual property can be registered at the Antigua and Barbuda Intellectual Property and Commerce Office.

In addition, Article 66 of the Revised Treaty of Chaguaramas (2001) establishing the Caribbean Single Market and Economy commits all 15 members to implement stronger Intellectual Property protection and enforcement.

The Economic Partnership Agreement (EPA) which was signed between the CARIFORUM States and the European Community in 2008 contains the most detailed obligations in respect of intellectual property in any trade agreement to which Antigua and Barbuda is a party. The EPA gives recognition to the protection and enforcement of intellectual property. Article 139 of the EPA requires parties to “ensure an adequate and effective implementation of the international treaties dealing with intellectual property to which they are parties and of the Agreement on Trade Related Aspects of Intellectual Property (TRIPS).”

International agreements

WIPO Convention

Convention Establishing the World Intellectual Property Organization (1967)

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WIPO Convention

WIPO - Berne Convention

Berne Convention for the Protection of Literary and Artistic Works (1886) establishes minimum standards regarding the national protection of copyrights in signatory countries, and guarantees the application in these countries of the national copyright law to artistic works originating from another signatory country.

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WIPO Berne Convention

WIPO - Patent Cooperation Treaty (PCT)

Patent Cooperation Treaty (1970)

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WIPO Patent Cooperation Treaty

WIPO - Paris Convention

The Paris Convention for the Protection of Industrial Property (1883) establishes industrial property protection rules regarding patents, marks, industrial designs, trade names, geographical indications and the repression of unfair competition. Its provisions include regulations regarding the national treatment, the right of priority and a number of common rules.

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WIPO Paris Convention

WIPO - Madrid Protocol

Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks (1989)

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WIPO Madrid Protocol

Infringement of intellectual property rights

In case of infringement, an owner or licensee of an intellectual property right may seek award of damages and remedies at the High Court.

They may  also request the Comptroller of Customs to seize imported counterfeit goods. However it is a matter of the courts to make the determination on the destruction of the goods. Seized items are usually handed over to the police to be used as evidence during any court matters. 

Antigua and Barbuda is in the process of reviewing the existing laws in relation to the importation of counterfeit goods into the country.

Competition law

Chapter 8 of the Revised Treaty of Chaguaramas provides the competition policy applicable to Caribbean Community (CARICOM) States. Member States are required to establish and maintain a national competition authority for facilitating the implementation of the rules of competition.

At the CARICOM level, a Caribbean Competition Commission has been established to apply the rules of competition in respect of anti-competitive cross-border business conduct. The CARICOM competition policy addresses anti-competitive business conduct, such as agreements between enterprises, decisions by associations of enterprises, and concerted practices by enterprises that have as their object or effect the prevention, restriction or distortion of competition within the Community; and actions by which an enterprise abuses its dominant position within the Community. No legislation is yet in operation to regulate competition in Antigua and Barbuda.

The OECS has agreed to establish a regional competition body to handle competition matters within its single market. The draft OECS bill has been submitted to the Ministry of Legal Affairs for review. 

Economy and production

The Eastern Caribbean Central Bank (ECCB) estimated that Antigua and Barbuda experienced an 8.5 per cent rate of growth in 2022.  Data published on the ECCB website indicates cumulative real economic growth of 15.1 per cent between 2021 and 2022 compared to the 17.4 per cent contraction in real output in 2020. The growth was mainly attributable to a rebound in the important tourism sector as well as robust construction activity.

Antigua is a member of the Eastern Caribbean Currency Union. The Eastern Caribbean Central Bank issues the East Caribbean dollar, which has been pegged since 1976 to the US dollar at (US$1.00 = EC$2.70). As a result, the Eastern Caribbean dollar does not fluctuate, creating a stable currency environment for trade and investment. The Bank also manages monetary policy, and regulates and supervises commercial banking activities in union member states.

Market access

Antigua and Barbuda is a member of the WTO as well as a number of regional groupings. It also has preferential access to the United States and Canada and reciprocal access to the European Union. Further details below.

Regional and international markets

CARICOM Single Market and Economy

Overseen by the Caribbean Community (CARICOM), established by the Treaty of Chaguaramas in 1973, it allows all goods originating from within CARICOM countries (except the Bahamas) to be traded without restrictions. Most member states also apply a common external tariff (CET) on goods originating from non-CARICOM countries. Investors operating in one CARICOM country are given preferential access to the entire CARICOM market. The Revised Treaty of Chaguaramas establishes the CARICOM Single Market and Economy (CSME), permitting the free movement of goods, capital and labour within CARICOM States. More information at: http://csmeonline.org.

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CARICOM Treaty CARICOM Single Market

Organization of Eastern Caribbean States (OECS)

The OECS, established by the Treaty of Basseterre, consists of seven full Member States: Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts & Nevis, St. Lucia and St. Vincent & the Grenadines, and three associate members: Anguilla, Martinique and the British Virgin Islands. The purpose is to promote harmonization among Member States in areas concerning foreign policy, defence and security, and economic affairs. The six independent countries of the OECS ratified the Revised Treaty of Basseterre establishing the OECS Economic Union on January 21, 2011. The Economic Union established a single financial and economic space within which all factors of production, including goods, services and people, move without hindrance.

Caribbean Basin Initiative

The CBI provides for the United States to reduce tariffs on imports from CBI beneficiary countries if a) they are imported directly from a CBI beneficiary country into the U.S. customs territory; b) they are wholly the growth, product or manufacture of a CBI beneficiary country or are substantially transformed into a new or different article in the CBI beneficiary country; and c) contain a minimum of 35 percent local content of one or more CBI beneficiary countries (15 percent of the minimum content may be from the United States). More information: https://ustr.gov/issue-areas/trade-development/preference-programs/caribbean-basin-initiative-cbi.

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Relevant documents

Trade and Investment Framework Agreement

Caribbean-Canada Trade Agreement

The Caribbean-Canada Trade Agreement provides goods originating from the Commonwealth-Caribbean with duty-free access to the Canadian market. Certain goods, such as textiles and apparel, footwear, luggage and handbags are excluded. There are plans to replace this agreement with a reciprocal free trade agreement. More information at: http://laws-lois.justice.gc.ca/eng/regulations/SOR-98-36/page-1.html

CARIFORUM-EU Economic Partnership Agreement

Signed in 2008 between CARIFORUM's 15 states and the European Union's 27 states, it allows products from CARIFORUM economies 100 percent immediate duty- and quota-free access to the EU. EU access to CARIFORUM markets will however be phased in over 25 years, with protection for 17 percent of CARIFORUM goods and services. The agreement also covers competition, innovation and intellectual property, public procurement, and environmental and labour standards. More information: http://ec.europa.eu/trade/policy/countries-and-regions/regions/caribbean.

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CARIFORUM-EU Economic Partnership Agreement

Tourism

Tourism

Antigua and Barbuda has had a tourism industry since the 1940's and was the first to be developed in the Eastern Caribbean. The industry saw significant growth in the 1980's and 1990's with the redevelopment of the St. John’s Waterfront and enhancement and addition of other attractions such as Nelson’s Dockyard and Jolly Harbour.

Key factors making the sector attractive include:

·  Landscape, climate and heritage: Three hundred and sixty five beaches, as well as forests and hilltop locations. A tropical climate. A number of colonial heritage sites.

·  Access: The international airport has direct flights to Europe, the United States and Canada and to other countries in the region. The cruise ship piers in St John's are being developed to include a cruise terminal and possibility for home-berthing. The 5^th Cruise Ship Berth was completed in 2021, however delays in the dredging of the St. John’s Harbour has meant that the OASIS Class vessels are still not able to dock.

·  Skills: An English-speaking workforce and a local Hospitality Training Institute.

·  Incentives: Attractive fiscal incentives package for the sector.

·  Potential for growth:  The Government has unveiled a raft of new pipeline projects. However, there have been some delays associated with the supply chain and logistics issues which have been brought about by the global pandemic.

While beaches are a natural asset, the Government is keen to focus on niches. These include:

·  Weddings and honeymoons: Laws have been amended to allow marriages to take place within a day of arriving in the country. There is no residency requirement although some documents need to be sent in advance.

·  Yachting and Marine Services: There are opportunities to increase the number of regattas during the sailing season. Opportunities exist in servicing this sector (see yachting and marine services below) as well as providing ground handling for yacht passengers to visit Antigua or transfer to their flights.

·  Beach activities: These include soft adventure sports such as jet-skiing and kite-surfing.

·  Culinary: The pineapple/mango (PiAngo) and seafood festivals draw visitors in off-season.

·  Colonial heritage: There are proposals to redevelop heritage sites. These include Nelson's Dockyard, Betty's Hope plantation, Fort James and Fort Barrington.

·  Cricket: The Sir Vivian Richards Cricket Grounds hosts international and regional cricket matches. It was inaugurated during the staging of the 2007 ICC World Cup where preliminary round matches were held. With a capacity of 10,000 it has since hosted the Finals of the 2018 ICC Women's World Twenty20 and the 2022 ICC Cricket U19 World Cup.

·  Cruises: The port at St John's is being redeveloped (see box below) and will be able to allow home-porting. There are opportunities for hotels to develop one or multi-day packages similar to Miami and Cartagena. There are also limited opportunities for ground-handling for cruise passengers, although this would be dependent on when the ships turn up, and would need to recognize the increase in attractions on board ships that would discourage passengers from disembarking.

·  Conventions: These typically take place at Sandals and Royalton. The Government is keen to encourage development of convention-ready hotels inland, although the addition of conference facilities to beach hotels can also be envisioned.

In 2022, Antigua and Barbuda attracted a total of 654,501 visitors to its shores. Of this number, 265,119 arrived by Air and 389,382 arrived by Sea. Arrivals by Sea for 2022 accounted 59% of the total number of visitors, while 41% accounted for arrived by air. In contrast, there were 255,684 visitors to Antigua and Barbuda in 2021, of this amount 66% came by Air and 34% by Sea. Therefore, Antigua and Barbuda saw an increase in the number of visitors in 2022.

Antigua and Barbuda saw significant increases in Air Arrivals in all source markets. Sea arrivals also saw an increase. Leisure, Recreation and Holidays continue to be the main purpose of visit sited by visitors. The average length of stay by visitors in 2022 was estimated at 11 days.

The US market accounted for 49% of all visitors to the island by Air. This was followed by the United Kingdom with 30%. Canada accounted for 7%, while the Caribbean accounted for 9%. ‘Other Europe’ reported 4%.

A total of 389,382 visitors travelled to Antigua and Barbuda by Sea in 2022. Comparatively, the previous year reported a total of 86,215 visitors, which is indicative of the restart of Cruise Tourism after the sector was locked down owing to the impacts of the Covid 19 pandemic. Consequently, arrivals by sea increased dramatically by 351.64% from 2021. A total of 377,271 Cruise passengers was reported in 2022. There were 12,111 visitors who arrived on Yachts in 2022, which represented an increase of 115.92% from the previous year.

The development of the 5th Cruise Berth in St. John's has resulted in the start of home-porting in late 2022.

The Government's aim is to double room stock (presently 3,000) by 2024 across all segments. Below is a description of the current room capacity in the country:

·  Luxury Hotels: Antigua boasts some of the finest luxury hotels in the Eastern Caribbean. Jumby Bay, an Oetker Collection Resort is located on a private island comprising 50 rooms accompanied by luxury villas that often house the rich and famous in anonymity. Curtain Bluff, founded over 50 years ago is the recipient of many prestigious awards. The sector enjoys good occupancy levels in the high season. All the hotels in this category usually close during September to October.

·  All-Inclusive Resorts: The most well-known hotel in this category is the Sandals Grand Antigua, a 373 room resort situated on Dickenson Bay and The Royalton Antigua Resort and Spa on Deep Bay comprising 294-rooms. The largest operator on the island is Elite Island Resorts that operates five properties; Galley Bay, a high end, couples-only 92 bed-room resort on the western coast at Five Islands, St James’s Club, a large sprawling resort on the south east coast comprising traditional hotel rooms and villas totaling 242 units; the Verandah Resort, another large sprawling resort in luxuriant vegetation totaling 180 units in low-level bungalows; Pineapple Beach Resort comprising 180 rooms as well as Hammock Cove Resort and Spa located in the historic Devil's Bridge area. It comprises a total of 42 Villas.  All five of these hotels are well maintained and offer a good product backed by effective marketing and enjoy an average 85% year round occupancy. Two large properties are presently in the process of redevelopment to be put on the market in the 2023/24 season. They are Jolly Beach and Halcyon Hotels.

·  Small boutique properties: The Island also boasts many small boutique style properties, an alternative to the large all-inclusives. Many are owner-managed and often locally-owned. Some such as Siboney Beach Club and Buccaneer Cove are strategically placed on the beach front whilst others are located in the historic English Harbour area. Whilst these hotels welcome vacationers they are also frequented by the business traveler to the island. With few true business friendly hotels most visitors to the islands stay within the small hotel community often in beachfront properties.

·  Short term rental properties: The enactment of the2019 Tourism Licensing and Classification Act has contributed significantly to the regulation and growth of the short term rental property market. Prior to the passing of the Legislation, there was a proliferation of properties advertising their services on platforms such as Expedia Airbnb and HomeAway. However, there was no formal mechanism to facilitate monitoring and determining whether the operators of these properties were providing value for money. As a consequence any accommodation under the regulation is now  mandated to be registered with the Ministry of Tourism as a prerequisite for operation. The Standards and Inspection Unit in the Ministry provides inspection and training services to the registered properties. The outcome of all this is that this relatively new addition to the accommodation sector grew significantly in 2021. The sector accounts for an estimated 1000 rooms with projected earnings of US$ 20 million per year.

Barbuda - The US$2.5 billion PLH Ocean Club is currently under construction employing over 500 persons directly. It is estimated that about US$120M was expended on this project in 2021, and the spending for the next ten years, is projected to be at least US$150M per year. PLH has projected employment of an additional 250 persons in 2022. Work on the new airport on Barbuda also progressed in 2021 with a tentative opening date before the end of 2022. With US$8 million provided by PLH, the runway was completed.

Education

Opportunities exist to establish higher education centres aimed at students from the US and other markets, where shortages of places in home countries exist. 

Key attractions include:

• Location and access: Short flying time to the United States. Attractive location for students.
  
• Skills: Well-educated, English-speaking workforce.
  
• Incentives: Useful fiscal and other incentives for facilities based in free trade zones.
  

There are currently 2 medical schools, the American University of Antigua Medical College and the Metropolitan University College of Medicine. The American University of Antigua (see box) uses the existing free trade zone legal framework.

Financial services

Antigua and Barbuda hosts both inshore and offshore financial services companies covering banking, trusts and insurance.

With regards to inshore financial services, cooperatives and insurance companies are registered with the Financial Services Regulatory Commission (FSRC), which is the supervisor and regulator.

Banks conducting business in the country must register with the Eastern Caribbean Central Bank (ECCB), the supervisor and regulator.

With regards to offshore financial services, the country hosts banks and trusts, which are registered as "international business corporations". International Business Corporations are also the company type for interactive gambling (see heading below).

Registration of international business corporations is through registered corporate service providers. The documentary requirements and procedures are set out on the FSRC website (see below). The process takes three to four weeks, though directors from outside Antigua and Barbuda may need due diligence checks.

IT enabled services - business process outsourcing

Antigua and Barbuda has a number of factors that make it an attractive location for ITES-BPO, which can include IT support, hosting or servers and Call Centres. These include:

• Good connectivity: The islands are connected to two undersea Fibre-Optic Cables.
  
• Skills: The local workforce is well-educated and proficient in English.
  
• Time zone: The time zone lines up with the US East coast and is four to five hours behind the UK.
  

Canada Place, the Global Headquarters of Business Mogul Calvin Ayre became operational in the latter half of 2019. Calvin Ayre is a Canadian entrepreneur based in Antigua and Barbuda who founded the Ayre Group and Bodog entertainment brand and also manages other business entities on the island. This represented a US $40 million investment into the Antiguan economy. 

Growth potential is seen in the provision of Bitcoin and Blockchain technology services to the interactive gaming industry.

Yachting and marine services

The Caribbean sailing season is December to April. During that time yachts are brought mainly from Europe, either sailed themselves or by ship. The season starts with a yacht charter show, attended by charter companies and agents, and ends with Antigua sailing week, which has been running for over 50 years. The country has a tradition of servicing boats cruising the island chain.

Key features that make Antigua and Barbuda an attractive investment destination in this sector include:

• Location: It is the only island port with high quality re-provisioning services between St. Maarten and Guadeloupe.
• Facilities: There are six marinas (Falmouth Harbour, Antigua Yacht Club, Nelson Dockyard, Jolly Harbour, North Sound and Catamaran) with berthing facilities that include electricity, water, fuel and food, and which cater up to the mega yacht grade. Other facilities include dry-docking and engineering services.
• Natural harbours: It features natural harbours of sufficient depth for a range of yacht types. Falmouth Bay area provides hurricane protection. The Government is keen for further harbours to be developed.
• Access: It has direct air connections for cruisers that want to leave their boats and head home to visit family for a week or two.
• Skills: Antigua and Barbuda has an established reputation for certain skills, including varnishing, sails repair, cleaning, engine repair and air conditioning repair. The Yacht Workers Association has started an apprenticeship programme to attract further workers to this sector.
• Events: Some of the Caribbean’s biggest yachting events take place in the country. In addition to Antigua Sailing Week they include the Super Yacht Challenge, the RORC 600 and the Classic Week.

Agriculture

Agriculture

Output in the sector continued to expand in 2022 as livestock and crop production increased. In real terms, the sector grew by a further 2 per cent reflecting ongoing investment and support for farmers. There was continued growth in egg and poultry production, which generated value of more than $20 million in 2022.

This growth was primarily attributable to intensified efforts to ensure greater food security in light of the impact of the Corona Virus pandemic. There was ramped up encouragement of back yard farming as well as efforts to provide more consistent water supply to farmers. Current farming includes crops and livestock with a nascent fish farming sector.

The government encourages foreign investment in many sectors including agriculture. The Government is not opposed to a non-national investing in Agriculture but its primary focus is to empower and enable Nationals already engaged in the sector. 

Opportunities exist to provide products to the local market, especially to a hospitality sector looking to find cheaper alternatives to imports. Areas not significantly exploited include fish farming (tilapia and shrimp), and hydroponics.

In 2016 the Government started the implementation of the “National Food Security and Sovereignty Action Plan”. This plan is aimed at reducing imports by empowering farmers to produce various crop and livestock commodities with the ultimate aim to achieve self-sufficiency in some of these; such as chicken, pork, roots crops and tubers, onion, carrot, tomato, melon etc.

Key Reasons to Invest

v  Governmental commitment to increasing the overall contribution of the sector to GDP

v  Recognition that greater use of technology can increase productivity and lower overall cost of production for various crops.

v  Duty-free access to CARICOM countries providing the products satisfy origin criteria

v  Preferential market access of Antigua produced goods to various countries

v  Opportunities for  greater use of  cost efficient solar technology for the generation of energy on farms

v  Linkages with other key sectors such as tourism

Investment Opportunities

Potential investment opportunities include agro-tourism, horticulture; Indoor vertical farms, greenhouses.

Farmers can also seek business opportunities in small livestock production as well as producing a range of staples, fruits and vegetables using a variety of technologies: hydroponics and micro irrigation systems.  

Renewable energy

The Government is aiming for the widespread adoption of renewable energy, with an emphasis on solar, wind and biofuels, in order to reduce the country’s dependence on fossil fuel imports and consumption. As a consequence, the National Energy Policy sets a goal of reducing energy consumption of public facilities by 30 percent by 2030.

Current projects include the installation of a 10 MW solar park spread between various sites, including by the airport (3 MW), on public buildings (2 MW), in Bethesda (4 MW) and on Barbuda (1 MW).

Work continued on the US$6.6 million Energy Resilience Project on Barbuda which is expected to be completed in early 2024. The works include undergrounding electricity transmission lines; reconnecting homes damaged during Hurricane Irma; installation of hybrid solar panels on public buildings; and adding 410Kw of generating capacity to support back-up power generation at the Green Barbuda Energy Plant.

The relative high cost of thermal energy in Antigua and Barbuda make renewables an interesting option. However, the recent acquisition by the Antigua Public Utilities Authority of new thermal generation capacity, limits its interest in reaching supply agreements with independent power producers. Nevertheless, businesses that have their own power generation capacity, are able to sell surplus electricity to the grid at 45 percent of the retail price. This amount is paid as credit against future consumption.

The following are incentives offered to foreign and domestic investors aimed at advancing the sector:

• Exemption of registered project resources from import duty on the actual plants, machinery and parts thereof imported for renewable energy generation
  
• Waiver of customs duties
  
• Relief from the payment of corporate tax in favor of registered projects
  
• Exemption of ABST
  

Additional initiatives underway include:

• The Caribbean Energy Efficiency Lighting Project (UNDP)
  
• Energy auditing in government buildings (CARICOM, GIZ Renewable Energy and Energy Efficiency Technical Assistance, and Ministry of Energy)
  
• Lighting retrofit project in government complexes and schools (Ministry of Energy & PDV CAB)
  
• Streamlining of concessions procedures for the private sector
  
• Renewable energy tariff rate setting

Real estate

Antigua and Barbuda's real estate market is steady but growing with the most popular segment being housing in the US$ 200,000 to 450,000 bracket. The rental market is also seen as steady. However, property sales have been poor with an outstanding stock of 200 properties for sale.

The market is generally price inelastic and targeted by a certain class of customer looking for a third or fourth property.

An additional market is the expatriate rental market, which includes at the higher end, Crobies, and at the mid-range end, Jolly Harbour.

In order to encourage investment into the sector, the Government provides options for citizenship for those investing a minimum of US$400,000 in a real estate unit or, as part of a group, US$1.5 million in a real estate development project (see Get Started tab). In both cases these must be in approved developments. For investors, citizenship has been seen as a useful benefit, although not a reason in itself for investing.

The Government is keen to ensure that real estate developments respect the environment of the islands. Given the attractiveness of being on the coast, developers should pay close attention to procedures linked to construction and environmental impact assessments, and to the criteria for purchase of public land (see Land tab).

Why invest in the country?

• No restrictions on foreign ownership of businesses
• No restriction on the repatriation of profits or capital c\gains
• Exemption from corporate tax for qualifying enterprises ranging from five (5) to twenty (20) years
• Exemption from import duties for qualifying businesses
• Diverse and well regulated offshore financial sector
• Highly educated labour force
• Preferential trade agreements with the United States, Canada, the European Union, the Caribbean Single Market and Economy and Organization of Eastern Caribbean States (OECS) Economic Union
• Excellent telecommunications infrastructure 
• Excellent sea and air links to major markets
• Legal system modeled on UK Law

Country data

Country map