TRADE & INVESTMENT

Trade Agreements
St. Kitts and Nevis is a beneficiary of the Caribbean Basin Initiative, CARIBCAN, and some agreements qualifying it for trade concessions with the United States, Canada, and the European Union. Also a member of GATT and WTO.

Industrial Sites
There are four fully developed industrial sites where production facilities can be constructed to specification and leased at nominal rates. Projections are that factory space will increase annually by 15,000 sq. ft. in St. Kitts and 5,000 sq. ft. in Nevis. The sites are managed and serviced on behalf of the Government by the Development Bank of St. Kitts and Nevis.

Bourkes Industrial Estate, Sandy Point
CA. Southwell Industrial Park, Ponds Section
CA. Southwell Industrial Park, Bird Rock Section
Prospect Industrial Park, Nevis

Contact: Manager, Industrial Parks, Development Bank of St. Kitts and Nevis, P.O. Box 249, Church Street, Basseterre, St. Kitts. Tel: (869) 465-2288; Fax: (869) 465-4016.

investment incentives
Under the Fiscal Incentives Act, generous incentives are available:

  1. Tax holiday of up to 15 years
  2. Additional tax rebates of up to five years
  3. Exemption from custom duties on material and equipment deemed necessary to establish update an enterprise
  4. Repatriation of profits, dividends, royalties, and imported capital by arrangement with the Ministry of Finance;
  5. Protection of investment through government agreement between St. Kitts and Nevis and the U.S.- and
  6. No personal income tax

Agro-Based Industries: The Government of St. Kitts and Nevis is promoting investment in a diverse selection of agro-based industries, including:
* Rum Distilling and Utilization of Sugar Industry By-Products,-
* Beef and Dairy;
* Confectionery Manufacture;
* Fruit and Vegetable Preservation & Processing;
* Fruit and Vegetable Production for Export;
* Small Ruminant Production-
* Aquaculture and Mariculture
* Deep Sea Fishing and Fish Processing

Hotel Aids Ordinance: The Hotel Aids Ordinance provides duty-free concessions (relief from customs duties and pier dues) on items for use in the construction, extension and equipping of a hotel of not less than 30 bedrooms.
Income Tax Ordinance provides special tax relief benefits for a hotel proprietors granted licenses under the Hotel Aids Ordinance:

  • The gains or profits of a hotel of more than 30 bedrooms are exempt from income tax for a period of 10 years, for hotels with less than 30 bedrooms, the gains and profits are exempt from income tax for a period of 5 years.

Import Duty Exemption: Companies which qualify for tax holidays are allowed to import into St. Kitts and Nevis duty-free all equipment, machinery, spare parts and raw materials used in production.

Taxation
Corporate Income Tax: The Corporate Income Tax has been reduced from 40% to 38%. A further reduction to 35% is planned over the next 2 years. Many businesses may qualify for development and tax concessions under the fiscal incentives act.

Capital Gains Tax: There is no capital gains tax.
Land Tax: The following is the land tax schedule for St. Kitts and Nevis (showing the tax rate as US Dollars per acre):

  • All cultivated land on the island of St. Kitts $1.48.
  • All uncultivated land on the island of St. Kitts $0.37
  • All cultivated or uncultivated land on the island of Nevis 40.37
House Tax: The tax is equivalent to 5% of the annual gross rental value for residences on St. Kitts or Nevis.

Nevis Offshore Business Nevis offers a wide range of offshore business attractions, and its financial services sector has flourished, firmly anchored on the island's stability, financial integrity, well-planned modern legislation and the implementation of protective regulations, relevant legislation includes the Nevis Limited Liability Company (LLQ Ordinance (1995), the Nevis International Exempt Trust Ordinance (1994), and the Nevis Business Corporation Ordinance (1984). For detailed information on the offshore financial sector in Nevis, contact: The Registrar, Offshore Companies, Springate Building, Government Road, Charlestown, Nevis, W.I. Tel: (869) 469-1469; Fax: (869) 469-1081

Wage Rates: There are minimum wage laws covering domestic servants and employees in stores only. The following are average wage rates in some industries:

  • Garments
    Trained US$3.75 per hour
    Trainee US$3.25 per hour
  • Electronics
    Trained US$4.37 per hour
    Trainee US$3.37 per hour