What is the income tax rate in the US Virgin Islands?

With the blessing of the U.S. Treasury and Congress, the islands offer a 90 percent reduction in U.S. corporate and personal income taxes. Much of corporate America already pays federal taxes well below the statutory 35 percent rate. But in the U.S. Virgin Islands, the average rate is just 3.37 percent.

Do you have to pay taxes in the US Virgin Islands?

Individual U.S. citizens and permanent residents who are bona fide residents of the Virgin Islands are subject to the same tax rates as are applicable to individuals under the U.S. Internal Revenue Code but they pay their tax on worldwide income to the U.S. Virgin Islands Bureau of Internal Revenue rather than to the …

Is US Virgin Islands a tax haven?

Benefits of BVI as a Tax Haven A BVI offshore company pays zero income tax. There is no British Virgin Islands tax on capital gains tax, nor are there gift taxes, inheritance taxes, sales taxes, or value added taxes.

Does USVI tax Social Security?

Taxes imposed on residents of the Virgin Islands include: Federal Income Tax (same as US mainland) Property Tax. Employers are required to remove social security, Medicare and income tax from employee pay.

Does the USVI tax retirement income?

Many potential retirees may ask themselves, ‘how are expat taxes in the US Virgin Islands? ‘ They are zeroing in on one place where you can actually save some money in the USVI. There is no sales tax, and real estate taxes are also comparatively affordable.

Is retirement income taxed in the Virgin Islands?

USVI Income Taxes: For residents of the USVI, instead of filing returns and paying taxes to the IRS, residents file returns and pay income taxes directly to the Virgin Islands Bureau of Internal Revenue. U.S. Virgin Islands Military Retired Pay Income Tax: Military retired pay is taxed in the USVI.

Can a U.S. citizen live in the Virgin Islands?

As an American citizen, you can move to St. Thomas, in the Virgin Islands, without winning the jackpot. It’s really no different than moving to another state, since you don’t need a visa and can simply arrive and establish residency. However, the cost of living is high, and hurricanes happen all too frequently.

Is it expensive to live in St Thomas USVI?

While St. Thomas may be a nice place to live, we say “avoid” due to the high cost of living. Apartments rent for about $2,000 a month and to buy a two-bedroom house in a good neighborhood will cost about $285,000-plus.

How much does it cost to retire in the Virgin Islands?

The cost of living in the U.S. Virgin Islands is higher than on the U.S. mainland. On average, apartments cost $2,000 per month. A two-bedroom house costs at least $285,000. Not everyone can afford health care on the U.S. Virgin Islands.