Antigua and Barbuda, two of the Leeward Islands, together with the uninhabited islet of Redonda, became an independent state on Nov. 1., 1981. Southeast of Puerto Rico in the Caribbean Sea, it had been a self-governing associated state of the United Kingdom since 1967. Saint John’s, a deepwater port on Antigua, is the capital. 

Largely deforested, Antigua is a partly volcanic and partly limestone coral island. Although generally low-lying, it rises to a maximum elevation of 405 m (1,330 ft) at Boggy Peak. It has a pleasant tropical semiarid climate. 

Barbuda is a low flat coral island. The country has a water shortage problems. Dams have been built to control surface drainage, and a desalination plant is in operation. Cotton and sugarcane are the principal products. 

Christopher Columbus arrived at Antigua in 1493 and named it after the Church of Santa Maria de la Antigua in Seville. The first European settlement was established by the British who arrived from the neighboring island of St. Kitts in 1632. Except for a brief period when it was occupied by the French, Antigua remained a British crown colony until 1967 when I became an independent nation. Antigua is currently a member of the British Commonwealth of Nations. A successful sugarcane industry developed, but with the abolition of slavery in 1834 plantation agriculture became less profitable and the economy fell into decline. 

Antigua has had a bicameral parliament since ending its status as a British colony in 1967. The constitution that came into force at independence established the British monarch, represented by a governor-general, is the ceremonial head of state. The Antigua Labor party, headed by Prime Minister Vere C. Bird, has dominated the government since independence. 

The country has long been a popular tourist resort. The cultivation of fruits and vegetables, light industry, offshore banking, and fishing are also important to the economy. 

The main island of Antigua is 108 square miles in size with a population of 78,000. St. John’s is the capital of Antigua and Barbuda. Some 30,000 residents reside here. 

Barbuda is the other inhabited island making up the State of Antigua and Barbuda. Barbuda is 62 square miles in size with a population of 2,000. Redonda, although part of the State of Antigua and Barbuda, is an uninhabited island of no economic importance.

International Business Corporation Act 1982 

Antigua is known better among Caribbean peers as an offshore honeymoon center than as an offshore financial center. 

Antigua enacted their International Business Corporation Act of 1982. It provides for exemption from local taxes for up to 50 years if the company does not carry on trade within Antigua. IBC’s have no capital requirements, no exchange controls, can use bearer shares, relocate to another jurisdiction, and have no statutory audit requirements. Capital gains taxes do not exist in Antigua. 

The IBC Act covers offshore banks, trust companies and insurance companies. 

Bill Cooper, the director of Antigua Overseas Bank (AOB) explains that “Customer confidentiality is as important as in other jurisdictions, and legislation is in place to protect sensitive business (i.e., financial and tax) information.” 

Cooper explains that AOB’s offshore capital department has had an influx of $10,000,000 over the last two years it has been in operation. Swiss American National Bank, with a six-year head start, has $60,000,000 under management. 

At present, the Antiguan court can only demand sensitive business information when it involves criminal matters under Antiguan law, although such crimes (like drug money laundering) need not necessarily be committed in Antigua. As no tax is payable by non-residents of Antigua, enquires by probing taxmen are not considered. 

Antigua recently enacted a Mutual Legal Assistance Treaty with the UK and the United States, but the treaty has no provisions for the exchange of international information. 

Individuals who reside in Antigua can receive income from any source in or outside Antigua 100% tax-free. To acquire resident status the individual must (1) have a permanent place of abode in Antigua, (2) must be physically present in Antigua for not less than 183 days in the income (calendar year). Outside this, temporary residents are taxed only on income arising within Antigua. 

Offshore banks registered in Antigua must have a capital of US$1,000,000 and offshore insurance companies must maintain minimum reserves of US$250,000. 

Antigua has all the tax haven attributes – an untainted reputation, a “scheduled territory” in Canada, and low government registration costs. The government is extremely supportive of all legitimate uses of Antigua as a tax haven.

Find the contact names, addresses, numbers and information for local government offices, banks, accountants, company formation services, investment and management companies, advisors, experts, maildrops, real estate agents and other useful local contacts in the THE OFFSHORE MANUAL & DIRECTORY.