The Government of Saint Lucia provides incentives to encourage investment in approved products/sectors by providing c such as relief from custom duties on the importation of raw materials, plant, machinery and equipment to be utilised in the business activity and may also grant tax holidays. There is also unrestricted repatriation of profits and carry forward of losses for up to two years.
Fiscal Incentives
To qualify for fiscal incentives offered by the Government of Saint Lucia, an enterprise must meet the following criteria:
i. The enterprise must be incorporated and registered in St Lucia.
ii. The enterprise must contribute to the economic development of St Lucia.
iii. The country’s human and natural resources must be utilized.
iv. The enterprise must train local personnel and upgrade its plant through technological transfer.
v. The enterprise must form linkages with other economic sectors.
vi. The enterprise must contribute to earnings in foreign exchange.
The Government of Saint Lucia offers a range of tax and non-tax incentives to the under the incentive regime. Approval of an enterprise for these incentives is granted by Cabinet upon application, unless otherwise specified.
Incentives Offered:
• Tax Holiday up to a maximum of fifteen years.
• Waiver of Import Duty on imported plant, machinery and equipment.
• Waiver of Import Duty on imported raw and packaging materials.
• Carry forward of losses.
• Unrestricted repatriation of Profits and Capital.
Please note that these incentives are not specific to any one industry and are a general description of what is available. For more information about the specific incentives that your business may be eligible for, please contact Invest Saint Lucia.
Tourism Incentives
Tourism Incentives Act
Tourism Stimulus and Investment Act(Until March 31, 2020)
Special Development Areas Act(Heritage and development inducing tourism products)
Exemption for up to 15 years.
Exemption on building materials, articles and equipment.
Limited Liability Company entitled to distribute profits as capital free of tax 2 years after the end of the tax holiday.
Exemption for up to 25 years.
Exemption for interest received during development.
Exemption on imports including fixtures and fittings.
Exemption on alternative energy and energy saving equipment.
No VAT on building materials and locally produced art and craft.
No Corporate tax during development phase.
No Property tax and Alien Landholding License fee during development.
-Exemption of stamp duty and vendors tax on transfer or sale of immovable property on initial transfer.
-Percentage tax credit for financial institutions based on the quantum of investment.
Exemption for interest received during development.
Exemption on inputs of construction of new building or renovation or refurbishment of existing buildings.
-Stamp Duty on construction inputs & initial purchase of property.
No Land and house tax
No Alien Landholding License fee
Incentives for Special Development Areas
The Special Development Areas Act is aimed at promoting balanced spatial and economic development of the island. The legislation provides incentives to investors/developers for the establishment of certain types of businesses in specially designated areas that are endowed with the necessary infrastructure and amenities for business development. The special development areas are Vieux-Fort, Anse La Raye, Soufriere, Canaries, Micoud, Cul de Sac Valley, and Choc Estate.
Individuals and/or Companies can obtain the following concessions on:
• Import duty on inputs for the construction of new buildings and the renovation or refurbishment of existing buildings.
• Land and house tax.
• Lower corporate taxes.
• Stamp duty payable by vendors and purchasers on the initial purchase or property, whether nationals or non nationals.
• Aliens Landholding licence fee.
The following are the types of businesses, which qualify for concessions:
o Conference Centres.
o Residential Complexes.
o Commercial or Industrial Buildings, including Office Complexes.
o Other facilities directed towards the improvement or expansion of services to the tourism sector.
o Water based activities.
o Tourism projects highlighting the heritage and natural environment of Saint Lucia.
o Arts and cultural investments.
o Agricultural-based activities.
o Fisheries-based activities.
Freezone Benefits
The incentives that a company may qualify for based on its location operating within the Free Zone include:
• Exemption from custom duties, taxes and related charges on all classes of goods entering the Freezone for commercial or operating purposes.
• No restriction or taxes on foreign exchange transactions.
• No taxes on dividends for the first 20 years of operation.
• No work permits fees for management personnel of the Freezone businesses.
• No import or export licenses.
• No price control.
• No company income tax for the first five years, thereafter very limited tax range.
