1A-4 Canaan & Sherpenjewel
USVI Tax Benefits
Learn more about USVI Taxi Benefits available to individuals and businesses
U.S. Virgin Islands
Tax Benefits
The U.S. Virgin Islands (USVI) offers significant tax incentives for individuals and businesses, primarily through the Economic Development Commission (EDC) program and other local tax benefits. Here is a breakdown of the key tax advantages:
1. Economic Development Commission (EDC) Tax Benefits
The USVI government offers tax incentives to attract businesses and high-net-worth individuals. Eligible businesses that qualify under the EDC program can receive:
Up to 90% reduction in federal income tax liability
100% exemption on excise taxes
100% exemption on business property taxes
100% exemption on gross receipts taxes
Exemption from customs duties on imported goods
These benefits apply to companies operating in various industries, including finance, technology, manufacturing, and hospitality.
2. No Capital Gains Tax for USVI Residents
If you become a bona fide resident of the USVI and meet IRS residency requirements, you can avoid federal capital gains taxes and instead pay a much lower USVI tax rate. This is particularly advantageous for investors, business owners, and individuals selling high-value assets.
3. No State Income Tax
Since the USVI is a U.S. territory, there is no state income taxes only federal tax, which can be significantly reduced through the EDC program.
4. Favorable Tax Treatment for Passive Income
The USVI does not impose additional local taxes on dividends, interest, or passive investment income, making it a great location for wealth preservation.
5. Real Estate Tax Advantages
Lower property taxes compared to many U.S. states
Tax incentives for real estate developers and hotel investors
Special exemptions for commercial property improvements
6. Estate and Inheritance Tax Benefits
The USVI does not have an estate or inheritance tax, making it a tax-friendly jurisdiction for asset planning and generational wealth transfers.
USVI Taxi Benefits
Who Can Benefit?
If structured correctly, living or operating a business in the USVI can lead to massive tax savings while still maintaining U.S. citizenship and legal protections.
✔️Entrepreneurs and investors
✔️Remote workers looking for tax-efficient residency
✔️Real estate investors
✔️Business owners expanding into the Caribbean
