The Government of St. Kitts has a favourable attitude towards investments that have had a positive impact on the citizens. In an effort to encourage such investments the government provides generous incentive packages.[clear]

Corporate Tax Incentives

Under the Fiscal Incentives Act, four types of enterprise qualify for tax holidays. The length of the tax holiday for the first three depends on the amount of value added in St. Kitts & Nevis. The fourth type, known as enclave industry, must produce goods exclusively for export outside the CARICOM region.

Enterprise Value Added Maximum Tax Holiday
Group I 50% or more 15 years
Group II 25% to 50% 12 years
Group III 10% to 25% 10 years
Enclave Enclave 15 years


Export Allowance

St. Kitts provides companies with a further tax concession effective at the end of the tax holiday period. In effect, it is a rebate of a portion of the income tax paid based on export profits as a percentage of total profits.[clear]

Rebate of Income Tax

% of Total Profits % of tax Export Profits
10% to 20% 25%
21% to 40% 35%
41% to 60% 45%
More than 60% 50%


Exemption from Import Duties

Full exemption from import duties on parts, raw materials, and production machinery is also available.[clear]

Hotels Aids Act

The Hotel Aids Act provides relief from customs duties on items brought into the country for use in construction, extension and equipping of a hotel of not less than 10 bedrooms. In addition, the Income Tax Act provides special tax relief benefits for hotels of more than 30 bedrooms. These hotels are exempt from income tax for 10 years.  If the hotel contains less than 30 bedrooms, gains or profits would be exempt from income tax for 5 years.[clear]

Repatriation of Profits

Companies registered in St. Kitts can repatriate all profits, dividends and import capital.