If you’re an entrepreneur or digital nomad weary of high taxes and bureaucratic red tape, you’re not alone. Many globally minded professionals are searching for jurisdictions where individual business status is straightforward, tax burdens are minimal, and personal freedom is respected. Antigua and Barbuda’s approach to sole proprietorships in 2025 offers a compelling, data-driven solution for those seeking to optimize their fiscal footprint without unnecessary complexity.
Understanding Sole Trader Status in Antigua and Barbuda
Antigua and Barbuda recognizes the Sole Trader / Sole Proprietorship status, allowing individuals to operate businesses without forming a separate legal entity. This structure is not only available but actively used by both locals and newcomers. Here’s what makes it stand out in 2025:
- Simple Setup: No need to incorporate or create a separate legal entity.
- Accessible to All: Open to regular citizens and residents, with no special restrictions.
- Business Name Registration: Required only if you operate under a name other than your own, via the Intellectual Property & Commerce Office (IPCO).
Pro Tip #1: Registering Your Business Name
- Decide if you’ll use your personal name or a business name.
- If using a business name, register it with the IPCO.
- Keep your registration documents for compliance and banking purposes.
Taxation: Zero Personal Income Tax in 2025
Perhaps the most attractive feature for sole proprietors in Antigua and Barbuda is the 0% personal income tax rate—a policy in place since 2016 and still valid in 2025. All business income earned as a sole trader is treated as personal income, meaning:
- No personal income tax filings or payments required.
- More of your earnings stay in your pocket, supporting true financial autonomy.
Pro Tip #2: Maximizing Tax-Free Earnings
- Ensure your business income is properly documented as personal income.
- Consult the latest tax guides to confirm ongoing 0% rates.
- Monitor for any regulatory changes each year—though none are expected for 2025.
Sales Tax (ABST) and Other Obligations
While personal income is untaxed, businesses may be subject to the Antigua and Barbuda Sales Tax (ABST) if annual turnover exceeds EC$300,000 (about $111,000 USD). The standard ABST rate is 15%.
| Requirement | Threshold / Rate | Details |
|---|---|---|
| Personal Income Tax | 0% | Applies to all personal and sole trader income |
| ABST (Sales Tax) | 15% | Only if turnover > EC$300,000 (~$111,000 USD) |
| Business Name Registration | Required if not using personal name | Register with IPCO |
| Social Security | Mandatory | Contributions required for all businesses |
| Business License Fees | Varies | Depends on business activity |
Pro Tip #3: Navigating ABST and Compliance
- Track your annual turnover closely. If you approach EC$300,000 (~$111,000 USD), prepare for ABST registration.
- File ABST returns as required to avoid penalties.
- Factor in social security and license fees when budgeting.
Case Example: Digital Nomad in Antigua and Barbuda
Imagine a freelance web developer relocating to Antigua and Barbuda in 2025. Operating as a sole trader, she earns EC$250,000 (~$92,500 USD) annually. She:
- Registers her business name with IPCO.
- Pays no personal income tax on her earnings.
- Is not required to register for ABST, as her turnover is below the threshold.
- Remits social security contributions and pays a modest business license fee.
The result? Maximum retention of earnings, minimal state interference, and a streamlined compliance process.
Summary: Key Takeaways for 2025
- Sole proprietorship status is fully available and practical in Antigua and Barbuda.
- Zero personal income tax on business earnings as of 2025.
- ABST applies only if turnover exceeds EC$300,000 (~$111,000 USD).
- Simple registration and compliance requirements.
For more details, consult these official resources:
- Antigua and Barbuda Business Registration
- Business Registration Act 2018 (PDF)
- Deloitte Tax Guide: Antigua and Barbuda
- ABST Guide (PDF)
Antigua and Barbuda’s sole proprietorship regime in 2025 is a rare opportunity for those who value simplicity, low taxes, and personal autonomy. Stay informed, optimize your structure, and enjoy the freedom to thrive.