Country code – AG
Legal basis – Common law
Legal framework – The International Trusts Act 2007
Formal name – International Trust
Settlor – The settlor is the person who establishes and whose assets are put into the trust. It may be either an individual or a legal entity. Corporations can also act as settlors or Settlor or Grantor.
The settlor may also be the beneficiary of the assets but may not retain control of the trust.
A trust shall not be void or voidable, and the property of the trust shall not be subject to transfer, attachment, encumbrance or other restraint, solely because of the settlor’s bankruptcy, insolvency or liquidation in any action or proceeding at the suit of a bankruptcy trustee, receiver or creditor of the settlor’s bankruptcy estate.
Neither the settlor nor the beneficiaries of an international trust shall be domiciliaries of Antigua and Barbuda.
Trustee – Trustees are natural or legal persons who hold the title to the assets and manage the trust, but they cannot benefit from it.
At least one of the trustees of an international trust shall at all times be a domiciliary of Antigua and Barbuda.
A company which is not licensed or regulated as a Trust Company under the Antigua and Barbuda Corporate Management and Trust Service Providers Act, 2007, may act as trustee for no more than three international trusts.
Beneficiaries – Beneficiaries are those who get benefit from the trust. Beneficiaries may be natural persons or body corporates.
There are specific provisions to prevent beneficiaries from draining the trust of its assets and spending in a thrifty way. Trusts law in Grenada allows avoiding both probate and forced heirship rules.
Protector – The trust deed of settlement may also appoint a protector and set forth the protector’s rights, duties, and responsibilities.
Disclosure - No person shall disclose any of the trust documents, their contents or the information contained in them, relating to the establishment, administration, maintenance, business undertaking, affairs or property of the trust to any other person.
Protection from foreign judgments – The International Trust Act has provisions to ignore and not enforce foreign judgments. The Hague Convention on Trusts does not apply in Antigua and Barbuda.
Protection from creditors – The Statute of Elizabeth on trusts does not apply in Antigua and Barbuda, so transfers by the settlor to the trust may not be set aside if the settlor transferred the property before the debt arose. The creditor must prove the fraudulent transfer of assets to the trust, which is not clearly defined by the law. Creditors’ claims may not be brought jointly. If a fraudulent transfer is proven, the trust may not be declared invalid.
Protection for immigrant trusts – Trusts that migrate from other jurisdictions do not benefit from retroactive protection.
Community property – Unless the trust deed of settlement provides otherwise, the property that is determined to be community property prior to its transfer to an international trust is no longer community property upon the transfer.
Exclusion of foreign law - There are exclusions in the legislation to be able to exclude foreign law. No trustee shall recognize, act upon or comply with any foreign judgments, injunctions, orders, decrees, levies, attachments, garnishments, executions or other legal or equitable process.
Choice of law – The choice of law of Antigua and Barbuda to govern the trust or a particular aspect of that trust, is valid, effective and conclusive regardless of any other circumstances.
Duration – Trust may last a maximum of two hundred years.
Compliance – All international trusts shall be registered on the Register of International Trusts. The Financial Services Commission shall maintain a Register of International Trusts containing only the following information for each trust: (a) the name of the trust; (b) the name and address of the Antigua and Barbuda trustee; and (c) the date of the registration of the trust.
Subject to the terms of the trust deed of settlement, a trustee shall keep accounts and inventory of the assets, income and liabilities of the trust.
- Settlor as a beneficiary
- Bankruptcy protection
- Ignore foreign judgements
- Hague convention on trusts
- Choice of law is binding
- Protection from immigrant trusts
- Community property provisions
- Custodian trustee permitted
- Rule against perpetuities (years)
- Yes Specific exclusion of foreign law
- Subject to CL rules Settlor can retain control
Protection of Settlor
Protection from foreign judgements
- Avoidance of forced heirship
- Spendthrift provisions
- Exclusion of Statute of Elizabeth laws
- Trust invalid if transfer fraudulent
- Creditor must prove fraudulent transfer
- Clear definition of fraudulent transfers
- Separation of creditor claims
- Statutory limitation on fraudulent transfer
Protection of Beneficiary
A trust established in Antigua and Barbuda may not be subject to local taxes applicable to the assets and income of the trust, provided that no residents of Antigua and Barbuda benefit from the trust and no physical assets are located there.
It must be noted that the choice of law of the trust would not be applicable to tax matters, which would be governed by the respective jurisdiction where the settlor, beneficiaries, assets or trustee are located, as applicable.
You should consult with your tax advisor or accountant to know the tax implications in your jurisdiction of residence when establishing a trust in Antigua and Barbuda, transfer assets to it and receive profits from said assets.
- Offshore Income Tax Exemption
- Offshore capital gains tax exemption
- Offshore dividends tax exemption
- CFC Rules
- Thin Capitalisation Rules
- Patent Box
- Tax Incentives & Credits
- Property Tax
- Wealth tax
- Estate inheritance tax
- Transfer tax
- Capital duties
- - Offshore Income Tax Rate
- - Corporate Tax Rate
- 0% Capital Gains Tax Rate
- 0% Dividends Received
- 0% Dividends Withholding Tax Rate
- 0% Interests Withholding Tax Rate
- 0% Royalties Withholding Tax Rate
- 0 Losses carryback (years)
- 0 Losses carryforward (years)
- 0% Personal Income Tax Rate
- 31 Tax Treaties
Antigua and Barbuda is a Central American country part of the Commonwealth. Formed by several islands to the east of the Caribbean Sea. The country is located on the Lesser Antilles and borders the island of Guadalupe to the south, Montserrat to the southwest, Saint Kitts and Nevis to the west and San Bartolome to the northwest. Saint John, located on the island of Antigua, is its capital, its most populated city, and its main port. Its official currency is the East Caribbean Dollar (XCD), which is pegged to the US$ at a 2.7:1 ratio.
Antigua and Barbuda is a unitary, parliamentary, representative democratic monarchy, in which the Head of State is the Monarch who appoints the Governor General as vice-regal representative. Elizabeth II is the present Queen of Antigua and Barbuda, having served in that position since the islands' independence from the United Kingdom in 1981.
Antigua and Barbuda is a beneficiary of the U.S. Caribbean Basin Initiative that grants duty-free entry into the United States for many goods. It is a member of the Caribbean Community and Common Market (CARICOM) and the CARICOM Single Market and Economy (CSME). Antigua is a member of the World Trade Organization (WTO), WIPO, UNCTAD, among other international institutions.
Its main economic sector is tourism, which accounts for approximately 60 percent of the GDP and 40 percent of investments. The agricultural sector is domestic-oriented, mainly of sugar cane, cotton and fruits and considerably limited by its reduced water supply. Other important economic activities include oil refining, textile, carpentry, rum production, beer, cement, local crafts, and furniture.
The country enjoys a high standard of living, well-educated workforce and high average life expectancy.
Antigua is also an offshore financial center, with a legal and tax framework advantageous for the establishment of International Business Companies, which are fully tax exempt, provided that no business is done within the territory. Antigua also offers an Economic Citizenship Program, where it is possible to obtain a second passport through an investment.
Tax treaties Map
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