I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a   P a g e  |    
 
 

Investing  in  
Antigua  and  Barbuda  

A  Guide  to  the  Antigua  and  Barbuda

 
Special    Economic  Zone    

 
 
KPMG  EASTERN  CARIBBEAN  

                           2016    

 
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1  
 
 
 
 

          Overview
   
   
   
   
A   twin   island   state   with   lush   scenery,   granting   of   a   comprehensive   set   of   incentives  
beautiful   beaches   and   welcoming   and   concessions.   At   the   core   of   the   agreement  
people,  Antigua  and  Barbuda  may  truly   is  the  continued  growth  of  Antigua  and  Barbuda  
be  described  as  a  gem  of  the  Caribbean.   as  a  country  through  enhanced  global  trade  and  
This   report   provides   a   comprehensive   development.   Undoubtedly,   this   will   attract  
overview   of   the   economic   climate   in   potential   investors   and   entrepreneurs   wishing  
Antigua  and  Barbuda  and  the  country’s   to   take   advantage   of   the   preferential   terms   of  
existing   investment   opportunities   with   business   offered   by   Special   Economic   Zones   in  
emphasis   on   Antigua   and   Barbuda   Antigua  and  Barbuda.      
Special  Economic  Zone  (ABSEZ).    
  We   do   hope   the   information   contained   in   this  
In   June   of   2014,   the   Honourable   Gaston   document   will   prove   to   be   a   helpful   guide   for  
Browne,   Prime   Minister   of   Antigua   and   the   individual   or   business   entity   seeking   to  
Barbuda   and   Yida   International   select   opportunities   in   Antigua   and   Barbuda  
Investment   Group   signed   a   that   will   provide   optimal   conditions   for  
Memorandum   of   Agreement   for   the   investment.  
development  of  the  ABSEZ  and  its    
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 

   
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2   Antigua  and  
Barbuda  Special  
Economic  Zone  
2.1     The  Licences  
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 The  Special  Economic  Zone  Act,  2015            The  Special  Economic  Zone  (Licence)    
                   Regulations,  2015  
 
 
 
 
 

   
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Antigua   and   Barbuda   Special   Economic   Zone  
   (Yida  International)  Licence  Order,  2015  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   

   
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3    
Introduction  

3.1   KPMG  
 
It   was   with   great   pleasure   that   KPMG   Eastern   Caribbean   accepted   the   mandate   to   prepare   a   guide  
which  conveys  information  about  the  investment  climate  in  Antigua  and  Barbuda,  with  special  emphasis  
on  the  Antigua  and  Barbuda  Special  Economic  Zone  (“ABSEZ”).  I  am  convinced  that  the  guide  will  prove  
to  be  a  useful  source  of  information  for  investors  looking  to  commence  business  activity  within  Antigua  
and  Barbuda  and  within  the  ABSEZ.  
 
Upon  being  elected  to  office  on  12th  June,  2014,  the  present  Government  of  Antigua  and  Barbuda  under  
the   guidance   of   His   Excellency   the   Honourable   Prime   Minister   Gaston   A.   Browne   entered   into   an  
agreement  with  the  Yida  International  Investment  Group  (“Yida”)  which  served  as  the  cornerstone  for  
sale   of   designated   lands   to   Yida   and   the   establishment   of   the   ABSEZ.     Thereafter,   The   Government   in  
collaboration   with   Yida   commissioned   numerous   experts,   including:   architects,   engineers,   economist,  
financial  specialist,  lawyers,  statisticians  and  surveyors  to  aid  in  the  planning  and  develop  of  the  Zone.  
This  report  is  a  compilation  of  their  research  and  findings.    
 
With   the   passing   of   the   Antigua   and   Barbuda   Special   Economic   Zone   Act,   in   September,   2015   the  
concept   of   the   ABSEZ   is   well   on   its   way   to   becoming   a   physical   reality.   The   Zones   are   projected   to  
become   a   highly   effective   tool   to   support   Antiguan   and   Barbudan   and   foreign   investments.   Special  
Economic  Zones  (SEZs)  have  been  known  to  evolve  into  instruments  which  help  to  boost  the  appeal  of  
regions   as   investment   destinations.   Antigua   and   Barbuda   aims   to   fall   into   this   norm.   The   ABSEZ   will  
comprise  of  nineteen  (19)  Zones.  Tourism  designated  zones  will  include  the  ABSEZ  International  Tourism  
Island,   Duty-­‐   Free   and   Casino   Zones.   Zones   designated   to   the   provision   of   financial   services   and   the  
country’s   trade   and   commercial   sector   will   include   ABSEZ   Banking,   Funds,   Insurance,   Off-­‐shore  
Settlement,  Education  Research,  Healthcare,  Aviation  Hub  and  Manufacturing  Zones,  to  name  a  few.    
 
This  is  a  truly  exciting  time  for  Antigua  and  Barbuda.  Experts  have  projected  economic  growth  over  the  
next   two   years.   The   country   recently   opened   a   new   international   airport.   Inaugural   flights   and   cruise  
ship   calls   abounded   in   2015.   Additionally,   there   are   numerous   development   projects   which   are  
scheduled   to   commence   within   the   country   in   this   calendar   year.   These   are   projected   to   provide  
thousands  of  jobs  and  large  scale  revenue  gains  for  individuals  and  entities.  We  at  KPMG  are  glad  to  be  a  
part  of  the  economic  landscape  of  Antigua  and  Barbuda  during  this  time.  
 
Cleveland  Seaforth          
Managing  Partner    
KPMG  Eastern  Caribbean  

   
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3.2     License  Holder  of  the  Antigua  and  Barbuda  Special  Economic  Zone  
 

“Antigua  and  Barbuda  shall  be  the  regional  economic  powerhouse  of  the  Caribbean”  

This  objective  is  one  which  the  Government  of  Antigua  and  Barbuda  has  set  under  the  administration  of  
His  Excellency  the  Honourable  Prime  Minister  Gaston  A.  Browne.  Since  assuming  office  in  June  2014,  the  
Government  has  originated  and  announced  no  less  than  USD  2.5  billion  in  new  high-­‐profile,  multi-­‐million  
dollar  direct  investment  into  the  country.  As  a  result,  the  country  has  posted  the  fastest  growth  in  the  
Caribbean   region   in   2015,   with   a   projected   5.4   percent   increase   in   GDP,   according   to   new   data   from   the  
United  Nations  Economic  Commission  for  Latin  America  and  the  Caribbean.  

As   an   international   investor   with   projects   across   four   (4)   continents,   our   Group   is   honoured   to  
contribute  to  the  vision  and  mission  of  the  Prime  Minister.  Our  investment  in  Antigua  and  Barbuda  is  set  
over  one-­‐thousand  six  hundred  (1,600)  acres  of  prime  lands  in  Northeast  Antigua,  consisting  of  two  (2)  
private  islands,  one  (1)  large  peninsula  and  nineteen  (19)  functional  economic  zones.  

For  the  Antigua  and  Barbuda  Special  Economic  Zone,  in  2015  the  Special  Economic  Zone  Act  has  been  
approved   and   enacted   by   the   Parliament   to   promote   and   establish   self-­‐sustainable   industrial,  
commercial   and   financial   corporate   offices   and   business   centers,   with   encompassing   infrastructure,   to  
facilitate   public   and   private   sector   investment   and   participation.   To   be   competitive   on   a   global   basis,  
taking   into   consideration   the   license   and   the   incentives   and   concessions   awarded,   the   Zone   shall   be  
permanently  tax  free  to  all  qualified  corporates.  

The   wide   range   of   benefits   for   the   establishment   of   the   Antigua   and   Barbuda   Special   Economic   Zone  
include   increased   trade,   growth   investment,   long-­‐   term   job   creation,   wider   economic   reform   strategy,  
effective   administration,   stronger   industry   focus,   national   income   diversification   and   increased  
international   standing.   The   creation   of   the   Zone   shall   underpin   the   attraction   of   foreign   direct  
investment   (FDI).   The   Antigua   and   Barbuda   government   stands   to   tremendously   benefit   from  
organizations  and  companies  around  the  world  which  strategically  chooses  to  operate  within  the  Zone.  
Detailed  information  on  the  overall  Zone  and  its  19  development  zones   can  be  located  in  Section  nine  
(9)  of  this  report.  

To   support   the   Government’s   objective   in   taking   its   tourism   growth   to   new   heights,   the   Antigua   and  
Barbuda   International   Tourism   Island   shall   in   total   develop   five   (5)   hotels,   serviced   apartments   and  
mixed  use  projects.    

We   strongly   believe   that   the   Antigua   and   Barbuda   Special   Economic   Zone   and   its   wide   ranging   investors  
shall  lay  the  foundation  for  long-­‐term  and  sustainable  real  economic  growth  for  the  nation,  cementing  
Antigua  and  Barbuda  as  the  regional  economic  powerhouse.  We  hereby  offer  our  sincere  appreciation  
to  the  Government  of  Antigua  and  Barbuda  and  the  people  for  their  commitment  to  the  Zone,  and  to  
KPMG  for  completing  this  high-­‐level  and  professional  report.  

Yida  Zhang  
Chairman  
Yida  International  Investment  Group  
 

   
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4  
 
 

About  Antigua  and  

Barbuda  
 

4.1  Geography  and  Climate        

 

Antigua  and  Barbuda  is  located  between  the  Caribbean  Sea  and  
the  North  Atlantic  Ocean.  The  whole  nation  is  divided  into  three  
(3)   islands,   namely,   Antigua,   Barbuda   and   Redonda,   which  
collectively  form  a  total  area  of  170.8  sq  miles  or  442.6  sq  km.  
The   main   island,   Antigua,   is   108   sq   miles   or   279.7   sq   km.   The  
highest   point   on   Antigua   is   Boggy   Peak,   rising   405m.   Located  
northernmost   of   Antigua,   to   be   precise   40   km   to   the   north   of  
Antigua,  Barbuda  is  a  coral  island  with  flat  terrain.  Barbuda  is  62  
sq   miles   or   160.6   sq   km.   There   are   no   rivers   in   Antigua   and  
Barbuda.   Located   at   the   southwest   and   55   km   to   the   main  
island,  Redonda  is  a  deserted  reef.      
 
The   capital   of   Antigua   is   St.   John's.   St.   John's   serves   as   the  
epicenter  of  the  country  with  the  national  politics,  economy  and  
culture   all   taking   place   there.   Antigua   is   divided   into   six  
parishes,   namely,   Saint   George,   Saint   John,   Saint   Mary,   Saint  
Paul,   Saint   Peter   and   Saint   Philip.   The   Capital   of   Barbuda   is  
Codrington.  
 
Antigua   and   Barbuda   has   a   tropical   climate.   The   islands  
generally  experiences  low  humidity  and  recurrent  droughts.  The  
mean   annual   humidity   is   74   percent.   The   mean   annual  
precipitation  is  1020  mm.  Temperatures  average  27℃  per  year,  
with  minimum  air  temperature  of  23℃.    
 
 
 
 
 
 

   
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5  
 
 
 

Economic  Overview    
 and  Citizenship  by  
               Investment  Program  
 
5.1     Executive  Summary    
 
The   Government   of   Antigua   investment,   and   an   the   Organization   of   Eastern  
and   Barbuda   strongly   entrepreneur   needs   twenty-­‐ Caribbean   States   (OECS)   and  
encourages   foreign   direct   six   (26)   days   from   start   to   the   Eastern   Caribbean  
investment  (FDI),  particularly   finish   to   transfer   the   title   on   Currency   Union.   The  
in  industries  that  create  jobs,   a   piece   of   property.   The   currency   of   exchange   is   the  
earn   foreign   currency,   and   government   of   Antigua   &   Eastern   Caribbean   dollar  
have  a  positive  impact  on  its   Barbuda   owns   55   percent   of   (XCD).   As   a   member   of   the  
citizens.   Antigua   and   the   land   in   Antigua.   The   OECS,   Antigua   and   Barbuda  
Barbuda   is   one   of   the   more   remaining   45   percent   is   has   a   foreign   exchange  
prosperous   states   in   the   privately   owned.   Currently,   system   that   is   fully  
Eastern   Caribbean.   The   land   ownership   is   prohibited   liberalized.    
government   is   pursuing   on  the  island  of  Barbuda.  The  
investment  in  niche  markets,   Land   Department   under   the   All   potential   investors  
particularly   tourism,   Ministry   of   Agriculture,   applying   for   government  
international   financial   Lands,  and  Marine  Resources   incentives   must   submit   their  
services,   offshore   education,   is  the  main  governing  body.   proposals   for   review   by   the  
agro-­‐processing,   light   Investment   Authority   or  
manufacturing,   real   estate   The   Government   treats   equivalent   department   to  
and   construction   and   foreign   investors   and   local   ensure   that   the   project   is  
information   and   investors   equally   with   consistent   with   the   national  
communication   technology   respect  to  the  establishment,   interests   and   provides  
(ICT).     acquisition,   expansion,   economic   benefits   to   the  
management,   conduct,   country.   There   are   no   limits  
Companies   registered   in  
operation,   and   sale   or   other   on   foreign   ownership   or  
Antigua   and   Barbuda   have  
disposition   of   investment   in   control.   Foreign   direct  
the   right   to   repatriate   all  
its   territory.   The   police   and   investment   policies   enacted  
capital,   royalties,   dividends  
court   systems   are   efficient   by   the   Government   is   to  
and  profits  free  of  all  taxes  or  
and   unbiased   in   commercial   attract   FDI   into   priority  
any  other  charges  on  foreign  
matters,  and  the  government   sectors,   and   advise   the  
exchange  transactions.    
operates   in   a   generally   government   on   the  
Foreign   investors   may   hold   transparent  manner.  Antigua   formation   and  
up   to   100   percent   of   an   and   Barbuda   is   a   member   of   implementation   of   policies.  
 

   
  
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5.2   Reasons  to  Invest      

 
Antigua  and  Barbuda  continues  to  be  one  of  the  most  attractive  investment  destinations  in  the  
Eastern   Caribbean   region.   Dynamic   economic   growth,   a   well-­‐educated   workforce,   various  
investment  incentives  and  its  location  in  the  heart  of  the  Eastern  Caribbean  will  attract  investors  
from  around  the  world  and  further  the  view  of  Antigua  and  Barbuda  as  a  worthwhile  business  
destination.  
  1.  Ideal  Location
 
 
  Located in the center of the Americas, Antigua and Barbuda provides the advantage of
easy access to markets in North, South and Central America and serves as a bridge to the
  markets in Europe and Africa.
 
 
 
  2.  Accessibility
 
  A brand new international airport opened in 2015 provides daily direct flights to the USA,
  Canada, the UK and several other countries in Europe, as well as South America and the
Caribbean region itself. Antigua and Barbuda is the home base of the Caribbean Airline LIAT.
  Accessibility by sea via world-­‐renowned regional ports is also an advantage allowing for easy
  access to raw materials and equipment.
 
 
  3.  Political  Stability
 
 
  Antigua & Barbuda is a small, stable country both politically and socially, with a strong
  democratic system of government based on the Westminster (UK) system.
 
 
  4.  Safety  and  Security
 
  Antigua & Barbuda is one of the most secure and safe countries in the Caribbean and
  compares very well worldwide for low crime rates and the rule of law. The country has little or
no exposure to large-­‐scale security concerns, such as terrorism. This provides the assurance of
  a secure location to do business and raise families.
 
 
 
  5.  Well-­‐Educated  Population
 
  Antigua & Barbuda is one of the more prosperous states in the Eastern Caribbean with
  tourism, business service outsourcing and the financial services as the largest sectors of
the economy. The literacy rate is over 90% reflecting a consistent focus on investment in
  education.
 
 
 
 
6.  Skilled  Population  
 
Antigua & Barbuda has developed significant human resource skills in tourism, information
technology-­‐enabled services, financial services and construction. A network of colleges, as well as
accreditation and certification bodies, ensures that skills quality meets world standards. Further,
  government policy is aimed at ensuring that the skills being produced
  match competitive business
requirements.
  
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7.  Robust     ICT  Infrastructure
Antigua &  Barbuda  places  a  high  priority  on  ICT  as  an  important  enabler  for  national  development.  
  has  experienced  rapid  growth  in  its  ICT  sector,  driven  by  major  
As  a  consequence,  the  country  
public  and  private  setor  investment.  Antigua  &  Barbuda  now  has  a  modern  telecommunications  
 
infrastructure.  This  has  facilititated   fast  growth  in  broadband  Internet  an  data  and  voice  services  
that  are  so  vital  for  modern  information-­‐intensive  buisnesses    easy  access  to  raw  materials  and  
  equipment.  
     

8.  Exchange  E   nvironment
 
Antigua & Barbuda is a member of the Organisation of Eastern Caribbean States (OECS)
within a common Central   Bank and currency area. The currency is pegged to the US Dollar
at the rate of EC$ 2.70 to US$ 1.00. The country has no foreign exchange controls or
 
restrictions on capital repatriation.
 

9.  Diverse  Investment  
  Opportunities
 
Antigua and Barbuda has garnered critical acclaim as a centre for tourism with significant
investments in that and   related sectors. However, there are a number of other
competitive sectors including: information, communications technology/business process
outsourcing, financial services,
  agri-­‐business and the creative industries.

 
10.  Openness  to     T   rade
     

 
Many countries in the Caribbean    have preferential access to some of the largest markets in the
world. Confirmed regional free trade agreements include WTO, CARICOM, OECS, COTONOU,
 
EPA and many more. An increasing number of double tax   agreements and bilateral promotion
and investment treaties have been and will be signed and ratified.
 

   
11.  Well-­‐Educated  
 
Population
Antigua & Barbuda is one   of the more prosperous states in the Eastern Caribbean with
Tourism, Business Service Outsourcing and the Financial Services as the largest sectors of
  is over 90% reflecting a consistent focus on investment in
the economy. The literacy rate
education.

12.  Strong  Investor  Protection

Antigua & Barbuda has a Common Law system which originated in the UK. The legal code guarantees
investor protection, facilitating an attractive investment environment. In the Latin American
Caribbean Region, Antigua & Barbuda is ranked highly for enforcing contracts and protecting
investors. Additionally, the country offers a well-­‐regulated, transparent and supportive environment
for business. The recent entrance of the Swiss private banking industry is seen as a boost in off-­‐shore
finance industry.

   
  
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13.  Responsive  Investment  Support
   
The region’s investment promotion experts have been recognised by the World Bank
for their encompassing financial services, competent inquiry handling services and
  excellent marketing strategies. The country offers a well-­‐regulated, transparent and
supportive environment for business.
 

  14.  Ease  of  Doing  Business

 
In its Ease of Doing Business Report 2016 the World Bank ranked Antigua number three
(3) amongst all members of the Organisation of Eastern Caribbean States.
   

 
15.  Special  Economic  Zones
 
Offer internationally comprehensive and competitive incentives and concessions to
    attract foreign direct investment, including across-­‐the-­‐board zero tax policies. Within
this project, multi-­‐national companies can minimize their global tax burden by using a
zone-­‐based entity to conduct business overseas.
 

 
 

   
  
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5.3  Citizenship  by  Investment  Program    

Under   the   Citizenship   by   Investment   Program,   foreign   individuals   may   acquire  

citizenship  in  accordance  with  the  Antigua  and  Barbuda  Citizenship  by  Investment  Act,  
2013,   which   grants   the   right   of   citizenship   by   investment.   The   Citizenship   by   Investment  
Unit   (CIU)   is   the   government   authority   responsible   for   administering   the   CIP   and  
processing   all   applications.   In   an   effort   to   ensure   its   independence   and   operational  
efficiency,  the  CIU  was  established  as  an  entity  separate  from  the  general  public  service.  
The   CIU   officially   opened   its   doors   and   commenced   the   process   of   accepting  
applications  in  October,  2013.  

There   are   three   (3)   investment   options   available   to   the   individual   seeking   to   acquire  
citizenship  of  Antigua  and  Barbuda  via  investment:  

1.   A   minimum   contribution   of   USD   200,000   to   the   National   Development   Fund  

(“NDF”);  
2.   An   investment   in   designated   officially   approved   real   estate   with   a   value   of   at  
least  USD  400,000;  and    
3.   A  business  investment  option  which  may  differentiated  into  two  (2)  categories:  

The   first   is   where   a   person   proposes   to   make   an   investment   in   an   approved  

business  of  at  least  USD  1,500,000  on  their  own  behalf.  

The  second  is  where  at  least  two  persons  propose  to  make  a  joint  investment  in  
such   an   approved   business   totaling   at   least   USD   5,000,000,   and   each   of   those  
persons   individually   propose   to   contribute   at   least   USD   400,000   to   the   joint  
investment.    

 Antigua   and   Barbuda   is   the   ONLY   British   Commonwealth   country   which   offers   the  
hybrid   of   benefits   originating   from   a   strong   Citizenship   by   Investment   Program   in  
combination  with  a  world-­‐class  Special  Economic  Zone.      

 
 

   
  
I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a |    
 

 
 

Antigua  and  Barbuda  CIP  offers  of  wide  variety  

of  benefits  including:  
 

 
1.  Visa  Free  Travel 2.  Safety  and  Security
3.  Tax  Advantages    
     

 
  and  Barbuda  passport  
-­‐an  Antigua   Antigua  and  Barbuda  is  a  peaceful   -­‐no  capital  gains  taxes    
provides  visa  free  travel  to  more   and  democratic  nation  based  on    
 
than  130  countries,  which  include   the  British  parliamentary  system   -­‐no  restriction  on  the  repatriation  
  CIP  in  the  Eastern  
Canada  (only   providing  a  safe  place  for  families   of  profits  and  imported  capital  
Caribbean  that  offers  visa  free   looking  for  an  alternative  country    
  of  residence.   -­‐no  estate,  death  or  inheritance  
travel  to  Canada),  the  United  
  taxes  
Kingdom  a  nd  the  European  
 
‘Schengen’     countries.  
-­‐where  an  applicant  becomes  a  
-­‐a  second  p   assport  may  afford  the   citizen  under  the  CIP  they  will  
holder  visa-­‐free  travel  to   enjoy  the  benefit  of  no  personal  
jurisdictions     not  available  to  their   income  tax  on  worldwide  income  
 
country  of    birth.  

 
 
4.  D   ual  Citizenship 5.  Development  Opportunities 6.  Time
     
 
 
Applicants  are  allowed  to  have   The  CIP  offers  substantial   -­‐fast  processing  within  three  (3)  to  
 
dual  citizenship.  Thus,  one  can   opportunity  for  a  developer   four  (4)  months    
enjoy  the  b   enefits  of  being  part  of   seeking  to  capitalize  on  the  
the  CIP  without  having  to   program  by  purchasing   -­‐no  requirement  to  travel  to  
renounce  y   our  existing  citizenship. undeveloped  areas  of  beachfront   Antigua  and  Barbuda  during  the  
  land  for  resort  development. application  process,  unless  
 
  requested  by  CIU
   
   

 
     

 
  
I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a |    
 

 
 
 
9.  High  value  real  estate  value  
 
7.  Inclusion   of  dependents   8.  Minimal  residency  
appreciation    
 
 
Children  under  26  years,  and   Five  days  residency  requirement   -­‐acquisition  of  property  for  private  
dependent     parents  or   within  the  first  five  years  of   use  or  rental  
grandparents  
  over  65  years  may   receiving  passport.  
-­‐interest  in  residential  and  
be  included  in  a  CIP  application.    
  commercial  real  estate  in  the  
Caribbean  has  increased  
  dramatically,  with  particularly  high  
  inquires  for  residential  real  estate  
in  Antigua  
 
 
 
 
 
 
 
12.  New  Foreign  Direct  
10.  Investment  
  in  the  Future   11.  Lifestyle  
Investment  initiatives    
 

In  today’s  e   ver  evolving  political   Once  granted  citizenship  one  is   There  are  several  FDI  projects  set  
and  economic  
  climate,  the   free  to  spend  as  much  time  in   to  commence  in  Antigua  and  
attainment  of  a  second  citizenship   country  as  their  heart  desires.   Barbuda.  This  offers  the  CIP  
 
for  an  individual   and  their  family   Whether  it  be  basking  in  the   applicant  further  opportunities  to  
members  c  an  be  treated  as  an   tropical  climate  which  offers   invest  in  the  country’s  robust  and  
investment  for  future  generations.   sunshine  every  day,  relaxing  on   growing  economy.    
  365  beaches,  or  dining  at  one  of  
  the  many  restaurants  and  resort,  
Antigua  and  Barbuda  offers  a  
 
relaxed  lifestyle  to  suit  all  
  individuals.  

   

   

   
  
I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a |    
 
 
 

6  
 
 
 

Antigua  and  Barbuda  

Special  Economic  Zone  
6.1   Why  ABSEZ?  
 

What  are  special  economic  zones?   substitution   policies   and   aiming   to   integrate  
into   global   markets   through   export-­‐led   growth  
  policies.  
A  special  economic  zone  (SEZ)  may  be  described   The   Antigua   and   Barbuda   Special   Economic  
a   demarcated   geographic   area   contained   within   Zone   has   been   established   as   a   means   of  
a   country’s   national   limits   where   the   rules   of   attracting   foreign   direct   investment   (FDI).   The  
business   differ   from   those   that   abound   in   the   twin   island   state   has   positioned   itself   to   be   on  
national   territory.   These   differential   rules   are   the   receiving   end   of   significant   economic  
primarily   concerned   with   investment   growth.  This  is  the  case  as  the  country  stands  to  
conditions,   international   trade   and   customs,   benefit  from  the  placement  of  non-­‐government  
taxation,   and   the   regulatory   environment.   organizations   and   companies   around   the   world  
Within   a   SEZ,   each   zone   is   given   a   business   being   located   within   the   Antigua   and   Barbuda  
environment   that   is   intend   to   be   more   liberal   Special  Economic  Zone.    
from   a   policy   perspective   and   more   effective  
from  an  administrative  perspective  than  that  of   Enacted   by   the   Parliament   of   Antigua   and  
the  national  territory.     Barbuda   in   September   2015,   the   Antigua   and  
Barbuda   Special   Economic   Zone   Act,   as   outlined  
“Special   Economic   Zones   Progress,   Emerging   by   the   Act,   is   designed   to   set   up   a   Special  
Challenges,   and   Future   Directions”,   Thomas   Economic   Zone   to   promote   and   establish   self-­‐
Farole,  Gokhan  Akinci  Editors   contained,   industrial,   commercial   and   financial  
SEZs   have   a   long-­‐established   role   in   corporate   offices   and   business   centers,   with  
international  trade.  Entrepôts  and  citywide  free   solid  and  good  infrastructure.  So  as  to  facilitate  
zones   that   guaranteed   free   storage   and   public   and   private   sector   participation   in   a  
exchange   along   secure   trade   routes   have   been   competitive  and  attractive  environment  for  the  
operating   for   centuries.   The   first   modern   promotion   of   economic   development   and   the  
industrial   free   zone   in   1959.   Since   the   1970s,   creation  of  jobs  in  Antigua  and  Barbuda.  
starting  with  East  Asia  and  Latin  America,  zones    
have   been   designed   to   attract   investment   in    
labor-­‐intensive   manufacturing.   These   zones    
became  a  cornerstone  of  trade  and  investment    
policy   in   countries   shifting   away   from   import-­‐  

   
  
I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a |    
 

   
 
 
Growth  
  of  Investment

 
Long-­‐long  
  Increased   term  job  
Trade creation

  Wider  
Effective  
economic  
administration
  reform  strategy  
Benefit  of  the  
 
establishment  of   Stronger  
National  
income  
 
Antigua  and  
industry  focus diversification

 
Barbuda  SEZ Growth  of  
  Regional  hub  
financial   development
practices
 

  Increased  
Increased  
educational   international  
  opportunities standing  

  Development  
of  industry

The   establishment   of   Antigua   and   Barbuda   Special   Economic   Zone   is   also  

motivated  by  the  desire  to  attract  foreign  direct  investment  (FDI).  The  Antigua  
and   Barbuda   Government   stands   to   tremendously   benefit   from   non-­‐
government   organizations   and   companies   around   the   world   gain   by   being  
located   within   the   Antigua   and   Barbuda   Special   Economic   Zone.   Fully   taking  
advantage   of   the   recently   opened   international   airport   as   well   as   new  
announced  flights  from  North  America  and  Europe,  the  economic  benefits  shall  
be  maximized.  

 
 
   
  
I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a |    
 
 
 
 
 
 
 
 

The   objectives   of   the   legislation   regulating   the   Antigua   and   Barbuda   SEZ   and   the   purposes   of  
establishing  a  SEZ  are  outlined  in  the  Antigua  and  Barbuda  Special  Economic  Zone  Act,  2015.    

 
♦ The  determination  of  Special  Economic  Zones  policy  and  strategy;  
  ♦ The  establishment  of  an  Advisory  Board;  
  ♦ The   establishment   of   the   Special   Economic   Zones   Fund   to   support   the  

  development  of  the  Special  Economic  Zones;  

♦ The   designation,  promotion,   development,  surveillance   and   management   of  
 
Objectives  of  the   Special  Economic  Zones;  
  Antigua  and  Barbuda  
Special  Economic  Zone  
♦ Regulatory  measures  and  incentives  for  Special  Economic  Zones  in  order  to  
  Act,  2015 attract  domestic  and  foreign  direct  investment;  and  

  ♦ The  establishment  of   a  single   point   of  contact   or   one   stop  shop   that   delivers  
the  required  government   services   to   businesses   investing   and   operating   in  
 
Special   Economic   Zones   in   order   to   lodge   applications   to   various  
 
government   authorities   and   agencies   and   to   receive   information   on  
  regulatory  requirements  from  such  authorities  and  agencies.  
   
  ♦ Facilitating  the   development  of   a  medium  and   small   size   industrial   complex,  
  having  strategic  national  economic  advantage  for  targeted  investments  and  

  industries  in  the  manufacturing  sector  and  tradable  services;  

♦ Developing  infrastructure  required  to  support  the  development  of  targeted  
 
industrial  activities;  
 
Purposes  of  Establishing   ♦ Attracting  foreign  and  domestic  direct  investment;  
  the  Antigua  and  Barbuda  
♦ Promoting   integration   with   local   industry   and   increasing   value-­‐added  
Special  Economic  Zone
  production;  and  
♦ Creating  decent  employment  and  other  economic  and  social  benefits  in  the  
 
area   in   which   it   is   located,   including   the   broadening   of   economic  
 
participation   by   promoting   small,   and   medium   enterprises   and   promoting  
  skills  and  technology  transfer.    

   
  
I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a |    
 

6.2  Overview  of  the  Authorized  Zones    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
1.   Antigua  International  Tourism  Island   11.  Antigua  and  Barbuda  Multi-­‐purpose  
2.   Sino-­‐Antiguan  International  Free  Trade   Entertainment  Zone  
Zone  (“FTZ”)   12.  Antigua  and  Barbuda  Casino  
3.   Antigua  and  Barbuda  Off-­‐shore  Duty   Development  Zone  
Free  Zone   13.  Antigua  and  Barbuda  Trading,  Logistics  
4.   Antigua  and  Barbuda  International   and  Wholesale  Center  
Bonded  Warehousing  Zone   14.  Antigua  and  Barbuda  International  
5.   Antigua  and  Barbuda  Finance  and   Education  and  Research  Zone  
Banking  Center   15.  Antigua  and  Barbuda  International  
6.   Antigua  and  Barbuda  Investment   Corporate  Headquarters  Zone  
Funds  Center   16.  Antigua  and  Barbuda  International  
7.   Antigua  and  Barbuda  Offshore   Healthcare,  Recovery  and  Rehabilitation  
Settlement  Centre   Zone  
8.   Antigua  and  Barbuda  Insurance  and   17.  Antigua  and  Barbuda  Comprehensive  
Trust  Center   Industrial  Park  Zone  
9.   Antigua  and  Barbuda  Off-­‐shore  Wealth   18.  Antigua  and  Barbuda  Aviation  Economic  
Management  Center   Development  Zone  
10.  Antigua  and  Barbuda  International   19.  Antigua  and  Barbuda  Ports  and  
Securities  Exchange  Center   Transportation  Hub  
 
 
 
 
 

   
  
I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a |    
 

6.3  Overview  of  Investment  Incentives  and  Concessions    

 
Concessions   Granted   for   the   Antigua   and   Barbuda   Special   Economic  
Zone  

With  the  aim  of  bolstering  the  interest  of  businesses  across  the  globe  to  
make   Antigua   and   Barbuda   the   destination   of   choice   for   investment   and  
further   the   view   of   Antigua   and   Barbuda   Special   Economic   Zone   as   a  
premium   local   to   set   up   a   business,   financially   libertarian   polices   have  
been   introduced.   These   policies   typically   regard   investing,   taxation,  
trading,   quotas,   customs   and   labour   regulations.   As   a   one-­‐of-­‐a-­‐kind  
special   economic   zone   in   the   Caribbean   region,   the   project   has   been  
awarded  a  wide  range  of  concessions  and  incentives  including:  

 
Overview  of  
  Investment  Incentives  
  INCENTIVES  
General  
  Financial  (Tax)  Policies
Policies  
 
Business   Infrastructure   Other  
 
Administration   Policies   Policies  
  Policies  
 

   
  
I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a |    
 

  Overview  of  Investment  Incentives    

Zone  Supervision  and  Management  

The  Advisory  Board  shall  –    
Advisory  Board   a)   advise  the  minister  on  a  strategic  plan  for  the  development  of  the  Zone,  
b)   carry  out  periodic  inspection  of  the  Zone,  and  
c)          monitor  the  operations  of  the  Zone  Committee      
The   Zone   committee   is   an   independent   administrative   body   of   the   Special   Economic  
Zone  Committee  
Zone,  responsible  for  giving  approvals,  overseeing  all  promotions,  planning,  investment,  
development,  construction  and  operations  of  the  Zone  and  other  related  matters  of  the  
Zone.  

General  Policies  

Effective  Date  of  the  SEZ   The  Special  Economic  Zone  License  and  the  incentives  and  concessions  granted  to  YIDA  
and  its  Concessions   shall  be  effective  from  the  date  of  the  licence  and  continue  in  force  in  accordance  with  
the  laws  of  Antigua  and  Barbuda.  

Additional  Concessions     In   the   event   any   new   concessions   are   awarded   to   other   parties   for   investment   in  
Antigua  and  Barbuda,  all  projects  of  the  Zone  shall  equally  be  entitled  to  enjoy  the  same  
incentives  and  concessions.  

Protection  of  Approved   The   License   awarded   to   YIDA   and   all   its   incentives   and   concessions   shall   be   protected  
Names  and  Categories  of   during   the   lifetime   of   the   Zone.   The   approved   names   and   categories   of   functional  
Functional  Businesses  and   businesses  and  industries  operating  in  the  Zone  shall  be  protected  and  such  approved  
Industries   names  and  categories  shall  not  be  accepted  for  approval  for  any  other  applicant.  

Financial  and  Tax  Policies  

Waiver  of  taxes  within  the   The  Zone  shall  be  free  of  all  taxes  levied  in  Antigua  and  Barbuda  
Zone    

Waiver  of  all  corporate   The   approved   entities   in   the   Zone   shall   be   exempted   from   all   corporate   taxes.   The  
and  personal  income  taxes   shareholders   of   corporations   registered   in   the   Zone,   the   residents   and   foreign  
employees  in  the  Zone,  as  well  as  the  profits  from  their  respective  investment,  equity  
and   other   assets   in   both   the   Zone   and   overseas   are   exempted   from   corporate   and  
personal  income  taxes  

Waiver  of  all  import  and   Exemption   from   the   payment   of   all   taxes   and   other   duties   on   the   importation   and  
export  duties  and  taxes   exportation  of  machinery  and  equipment,  production,  processing  and  assembly  pieces,  
building   materials,   office   supplies,   finished   and   semi-­‐finished   products,   raw   materials,  
other  goods  or  services  to  be  utilized  in  the  performance  of  services,  construction  and  
works  within  the  Zone.  The  import,  export  and  re-­‐export  of  all  goods  through  the  Zone  
and  the  import  of  personal  belongings  and  household  effects  of  all  staff  and  residents  of  
the   Zone   are   exempted   from   the   payment   of   all   import   and   export   taxes   and   other  

   
  
I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a |    
 

related  duties.  

Waiver  of  value-­‐added   All   value-­‐added   tax,   sales   tax   and   capital   gains   tax   and   any   relevant   taxes   shall   be  
tax,  sales  tax  and  capital   waived  in  the  Zone.  
gains  tax  

Waiver  of  all  sales  and   All   taxes   related   to   sales,   operation,   development   and   construction   activities   within   the  
operation  and   Zone  shall  be  waived  
development  taxes  and  
duties  

Waiver  of  capital  gain   All   companies   established   within   the   Zone   and   their   shareholders,   all   residents   and  
taxes  and  wealth  taxes   personnel  in  the  Zone  are  exempted  from  the  payment  of  capital  gains  taxes  and  wealth  
taxes  on  land,  shares,  securities  and  any  other  investments  and  assets  within  the  Zone  
and  in  any  other  country.  

Waiver  of  inheritance  and   All   companies   and   personnel,   irrespective   of   the   relationship   between   the   donor   and  
gift  taxes   the  recipient  of  the  gift,  are  exempted  from  all  inheritance,  gift  and  other  relevant  taxes  

Business  Administration  Policies  

Import  and  export  process   The   Zone   shall   be   equipped   with   its   own   import   and   export   customs   gateway.   The  
customs  gateway  shall  be  managed  by  customs  department  established  in  the  Zone  and  
monitored  by  the  Zone  Advisory  Board.  A  specialized  customs  management  department  
shall   be   established   to   ensure   that   the   customs   gateway   shall   operate   independently  
and   that   a   protocol   will   be   set   up   to   simplify   and   fast-­‐track   import   and   export  
procedures    

Zone-­‐based  Company   For  incorporation  of  companies  within  the  Zone,  a  time  frame  of  72  hours,  equivalent  to  
Incorporation  Fast-­‐track   3   working   days,   for   completion   of   all   correspondence   processes   shall   be   imposed.   A  
company  registry  in  the  Zone  shall  be  established  to  provide  one-­‐stop-­‐shop  service  for  
incorporation  of  companies  

Management  of  Zone-­‐ Key   policies   include:   Any   18-­‐year-­‐old   individual   of   any   nationality   can   incorporate   a  
based  Company   company.   Incorporation   capital   shall   not   be   less   than   USD   1,000.   Application   of  
formation   of   exempted   companies,   information   of   shareholders   are   completely  
confidential.   Annual   General   Meeting   (AGMs)   for   Zone   entities   are   not   required.   Only  
one  person  acting  as  both  the  shareholder  and  director  is  required  to  incorporate  the  
company.   All   other   purpose   companies   are   permitted   except   companies   requiring  
licenses  such  as  banking,  insurance  and  financing  services  

Establishment  of  the   Establishment   of   a   Special   Economic   Zone   Financial   Centre   Committee   shall   be  
Financial  Centre   authorized   by   the   Special   Economic   Zone   Committee   to   administer   and   regulate   the  
Committee   Financial   Centre.   Such   authorities   include   the   governing   of   the   Financial   Centre,  
offshore   wealth   management   centre,   off-­‐shore   financial   settlement   centre,   off-­‐shore  
banks,   trust   companies,   fund   companies,   securities   companies   and   insurance  
companies  and  their  approvals.  The  Financial  Centre  shall  permit  sole  investments,  joint  
investments   and   foreign   direct   investments.   Flexible   and   creative   corporate   activities,  

   
  
I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a |    
 

day  to  day  operational  management,  auditing  and  making  of  rules  and  by-­‐laws  

Confidentiality   Absolute   confidentiality   of   customer   information   is   observed   by   the   financial  

institutions  in  the  Zone  

Work  permits   Foreigners  (non-­‐residents)  are  allowed  to  be  employed  or  work  in  any  commercial  and  
industrial  profession  (incl.  supervisory,  technical  and  advisory  positions)  in  any  field  of  
business.    Permits  will  be  approved  within  14  days  of  the  applications    

Infrastructure  Policies  

No  (Spatial)  planning  and   No   (spatial)   planning,   density   ratio     and   construction   restrictions   (both   on-­‐   and   off-­‐
construction  restrictions   shore)   -­‐   necessary   constructions   may   include   (not   limited   to):   (private)   marina,  
(artificial)  beaches,  trenching,  channels,  groins,  (underwater)  attractions  -­‐  all  shall  have  
no   restrictions,   subject   to   the   minimum   requirement   of   Antigua   and   Barbuda   Physical  
Planning  Act  

Grant  of  Permissions   Grant   of   permission   to   build   over   and   under   water,   subject   to   the   requirement   of  
Antigua  and  Barbuda  Physical  Planning  Act  

Government   The   Government   undertakes   to   construct,   install,   deliver   and   maintain   necessary  
infrastructure  investments   infrastructure   connections   to   the   Zone   (e.g.   construction   of   roads,   highways,   power,  
(out  of  the  Zone)   telecommunication,  water  supply  and  sewage  treatment,  etc.)  
Custom  branches  and   The   Government   undertakes   to   provide   customs-­‐connected   ancillary   facilities   in  
ancillary  facilities   relation   to   independent   operation   and   management   of   the   Zone,   such   as   postal  
services,  including  placement,  building  and  maintenance  

Land  use  right   If  under  the  circumstance  whereby  a  proposed  project  committed  to  the  Zone  cannot  
come   to   fruition   due   to   land   restrictions   at   the   time   of   the   investment,   the   lands  
acquired   for   such   project   outside   of   the   Zone   shall   be   treated   as   a   natural   and   legal  
extension  of  the  Zone,  and  all  attached  rights  and  concessions  shall  be  consequentially  
awarded  

Licensing  Policies  

Lottery  Policy  approval   Granting   of   Casino   license   to   the   Zone   and   exemption   of   gaming   taxes   and   casino  
operations   revenue   related   tax,   inclusive   of   annual   licensing   fees   for   the   casino.  
Winnings  from  gambling  customers  are  also  fully  tax  exempt  

License  for  scheduled   License   to   be   granted   for   scheduled   items   (e.g.   food   and   beverage,   liquor,  
items   entertainment,   hotel   and   casino   to   be   effective   365   days   a   year   and   24   hours   a   day,  
etc.)  

Banking  license   The   Government   will   grant   of   all   licenses   and   relevant   approvals   and   permits   to   the  
financial   centre,   the   off-­‐shore   wealth   management   centre,   off-­‐shore   financial  
settlement   centre,   trust   companies,   fund   companies,   securities   companies,   securities  
exchange  companies,  off-­‐shore  banks  and  insurance  companies  in  the  Zone.  

   
  
I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a |    
 

6.4  Citizenship  by  Investment  in  the  ABSEZ    

Citizenship  by  Investment  Opportunities  of  the  Antigua  and  Barbuda  Special  Economic  Zone  

The   Antigua   and   Barbuda   Special   Economic   Zone   is   a   fully   approved   development   project   under   the  
Antigua   and   Barbuda   Citizenship   by   Investment   Act   2013   (http://cip.gov.ag/investment-­‐options/real-­‐
estate/approved-­‐development-­‐projects/).   The   Citizenship   by   Investment   Unit   (CIU)   was   established   by  
the  Honourable  Prime  Minister  of  Antigua  and  Barbuda  and  is  the  Government  authority  responsible  for  
processing   all   applications   for   Agent’s   Licenses,   and   all   applications   for   Citizenship   by   Investment   by  
applicants  and  their  family.    
 
Key  benefits  for  an  Antigua  and  Barbuda  citizenship  include:  

    of  Application  
Mode   ■ Application  for  passport  directly  

   
Passport   Issuance ■ Immediate  upon  approval  

   
Passport   Category   ■ British  Commonwealth  passport  

   
Language   Requirement   ■ No  test  required  

   
Residency   Requirement ■ No  requirement,  no  initial  visit  

   
Effective   Date     ■ Forever  

   
Application  Process ■ Within  90  days  for  passport  

   
Visa-­‐Free  Travel     ■ Immediate  130+  countries  with  visa  free  access  

   
Extended   Stays  of  Visa   ■ Up  to  180  days  of  stay  

   
International   Education   ■ English  as  basis,  suitable  for  US/UK  schools  

Sale     o   f  Property   ■ No  appreciation  tax  upon  sale  

Tax  P    lanning     ■ No  worldwide  income,  gain  or  inheritance  tax  

 
   
Concessions   ■ Employment  as  prescribed  by  the  SEZ  Act  

   
  
I n v e s t i n g   i n   A n t i g u a   a n d   B a r b u d a |    

Contact  Us
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Sydney  Cleveland  Seaforth  
Managing  Partner  
T:  268  462  8868  
F:  268  462  8808  
E:  cseaforth@kpmg.ag  
 
 
©  2016  KPMG  Eastern  Caribbean,  a  partnership  registered  in  Antigua  &  Barbuda,  St.  Lucia  and  St.  Vincent  &  The  Grenadines,  is  
a   member   firm   of   the   KPMG   network   of   independent   member   firms   affiliated   with   KPMG   International   Cooperative   (“KPMG  
International”),  a  Swiss  entity.  All  rights  reserved.  
The   KPMG   name,   logo   and   “cutting   through   complexity”   are   registered   trademarks   or   trademarks   of   KPMG   International  
Cooperative  (“KPMG  International”).