If you are a digital nomad, in search of a friendly tax home, Antigua & Barbuda might be what you’re looking for!
April 11, 2019
By: Bobby Casey, Managing Director GWP
In these times of economic scrutiny, it’s getting difficult to navigate the regulatory waters. Let’s be honest, governments hardly need an excuse anymore to “crack down” on offshore activity. The Panama Papers made headlines as if they were evidence of some nefarious underworld, despite the lack of any evidence to that effect.
This is one of the reasons I created GWP Insiders: to give people the resources they need to make informed decisions about their internationalization efforts.
Not that long ago, an Iranian banker was apprehended for using his dual citizenship with St. Kitts and Nevis to circumvent US sanctions. To hear them describe the charges, you’d think they were involved in some dark dealings, but it boiled down to avoiding sanctions and money laundering.
The truth is, the US was a poor sport about a legitimate loophole. The Iranian bankers maintain their innocence, as they should, because they met each of the requirements and followed the rules. Rules the US government determined were too lax for their liking.
Does that mean every offshore opportunity in the Caribbean is on shaky ground? No. Look, the US government has it out for Iran. If you are Iranian, then you will need to proceed with caution no matter what you do.
The bigger picture is that economic oppression creates economic refugees. Whether it’s Californians fleeing to Texas, New Yorkers fleeing to Florida, or Iranians fleeing to St. Kitts and Nevis, the story is the same. Individuals are seeking economic freedom, and those with means have options.
Even the Chinese are signing up in droves, and Iranian expats are likewise still signing up, regardless of what the US government may or may not do.
The fact is, the very criticisms of Caribbean citizenships are what make them so valuable!
Antigua and Barbuda are offering, for a limited time, a reduced cost citizenship by investment opportunity. I call it an opportunity not just because of the short period of availability, but because it can be a digital nomad’s best friend.
Recent standards in international bank reporting require people to list a “tax home”. That is to say, what tax regime do you belong to? If you don’t list one, they default to your home country.
Here are three acronyms that become critical to you when considering offshore banking or setting up a new tax home:
- FATCA – Foreign Account Tax Compliance Act
“The Foreign Account Tax Compliance Act (FATCA), which was passed as part of the HIRE Act, generally requires that foreign financial Institutions and certain other non-financial foreign entities report on the foreign assets held by their U.S. account holders or be subject to withholding on withholdable payments. The HIRE Act also contained legislation requiring U.S. persons to report, depending on the value, their foreign financial accounts and foreign assets.”
- OECD – Organization for Economic Cooperation and
- CRS – Common Reporting Standard
“The Common Reporting Standard (CRS), developed in response to the G20 request and approved by the OECD Council on 15 July 2014, calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. It sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.”
- CRS – Common Reporting Standard
If you’re trying to get out from under the US tax system, for example, you won’t get far if you have your offshore bank still reporting back to the US.
The solution is to get a new tax home. One in which you don’t have to live, so you can continue your nomadic lifestyle; but allows you to get through the paperwork while having little to no tax obligations. If you are a digital nomad, then this citizenship also grants visitor access to over one hundred countries around the world!
If you want to settle in these islands, great! That is also an option. But if you’re country-hopping and jet-setting, then you can still call Antigua and Barbuda your tax home.
The islands sell themselves with their weather and beaches. It’s not as humid as other islands in the West Indies, but its rainiest season is also its hottest season: May through November. With a population of 90,000, the entire country is smaller than many cities around the world.
With 365 beaches and situated where the Atlantic Ocean and Caribean Sea meet, it offers a great number of natural attractions to see.
Get connected to the details on GWP Insiders, and you can find out:
- What will I get with this opportunity? (Hint: A LOT!)
- How much? (Pro Tip: These islands accept Bitcoin and other cryptocurrencies!)
- How long will it take? (Hint: Not as long as you think.)
- What are my tax obligations?
- Who can I contact to get started?
- And much more!
Register for GWP Insiders today! Not only will you find detailed information about Antigua and Barbuda, but you will also get access to other offshore opportunities for banking, living, and investing!
GWP Insiders is the growing resource center for people looking to internationalize their lives in any capacity. Whether you’re looking for a new physical home, or a new tax home, GWP Insiders connects you to the information and resources you need to get started.