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USVI Tax Incentives for Relocating Your Business

Explore USVI tax benefit programs available to residents and businesses through the Economic Development Program (USVI EDC) and Virgin Islands RT Park. Relocate your business to the US Virgin Islands today!

USVI Tax Incentives for Relocating Your Business

US Virgin Island Tax Benefits

Perfect location, gorgeous weather and amazing beaches. Could the U.S. Virgin Islands actually get any better? As a matter of fact, for entrepreneurial business people, it does actually get better. Not only is the U.S. Virgin Islands a perfect vacation locale, it is an even better place to do business. The U.S. Virgin Islands, an unincorporated territory of the United States, is home to nearly one hundred companies that have opened their doors in the territory and been granted significant tax benefits for contributing to the economic development of the territory.

In an effort to assist the U.S. Virgin Islands in attracting more business to the territory and to allow it to become a self-supporting territory, the United States Congress enacted section 934 of the Internal Revenue Code which allows the U.S. Virgin Islands to grant tax incentives to USVI  businesses on income that is sourced or effectively connected to the US Virgin Islands.

There are two tax incentive programs in the U.S. Virgin Islands that seek to attract new businesses to the territory, the Economic Development Program which operates under the auspices of the Economic Development Authority and the Research and Technology Park which operates in partnership with the University of the Virgin Islands (UVI). There are also significant tax incentives available for companies that wish to develop hotel properties in the U.S. Virgin Islands.


1. Corporate Tax Incentives at Virgin Islands RT Park 

What is Research & Technology (RT) Park?

In an effort to develop a thriving e-commerce and technology sector in the U.S. Virgin Islands, the Legislature of the Virgin Islands created the Research and Technology Park which operates in partnership with the University of the Virgin Islands. The RT Park mission is to position the U.S. Virgin Islands as a near-shore, world-class provider of e-commerce and information technology (IT) infrastructure solutions for knowledge-based, e-commerce and digital content companies.

The Virgin Islands RT Park typically engages as a business partner, aligning its resources, including generous corporate tax incentives, with workforce development opportunities benefiting U.S. Virgin Islands companies and the U.S. Virgin Islands economy.

What benefits does RT Park tax program offer?

Companies who qualify for benefits under the RT Park program can qualify for the following benefits:

  • (Up to) a 90 percent (90%) reduction in income tax liability shown on its tax return for the taxable year on U.S. Virgin Islands sourced or effectively connected income;
  • 90% credit against personal income tax due on distributions from the business granted benefits for bona fide resident owners of the U.S. Virgin Islands;
  • A 100% exemption on real property taxes utilized in the business for which benefits have been granted;
  • A 100% exemption from gross receipts taxes on receipts from the business for which benefits have been granted;
  • An exemption from withholding tax with respect to payments of interest and a four percent (4%) withholding rate on the payments of dividends and royalties;
  • A 100% exemption from excise taxes for certain material imported for use in the business;
  • A reduction in customs duties to one percent (1%) on raw materials and component parts brought into the USVI;

What does a business qualify for RT Park tax benefits?

In order to be eligible for benefits the RT Park beneficiary must agree to the following:

  • Run all of its electronic transactions through web servers physically located within the U.S;
  • Perform all of its e-commerce transactions with the approved or preferred e-commerce partners;
  • Perform its worldwide banking with approved banking partners or financial institutions located in the USVI;
  • Operate its business in a legal and ethical manner;
  • Collaborate and interact with UVI in workforce development initiatives and joint research as opportunities become available;
  • Participate with RTPark and UVI in a Community Reinvestment Program;
  • Comply with all applicable RTPark and governmental regulations regarding conducting business activities in RTPark and the USVI;


2. Corporate Tax Advantages through the USVI Economic Development Commission

What does the EDC (Economic Development Commission) do?

The EDC seeks to attract the a variety of different business to the territory including but not limited to manufacturers, high-technology assembly companies, pharmaceutical companies, hotels, service businesses such as call centers, consulting companies, and financial services companies, including hedge funds and money managers. The goal of the EDC is to provide the necessary incentives to make your business expansion or relocation a reality. In return for such incentives, EDC beneficiaries must commit to meeting certain requirements on an annual basis. The requirements include, among other things:

  • Making the statutorily required capital investment in a new business;
  • Hiring a minimum of five to ten employees (dependent upon the type of business) who have been residents of the U.S. Virgin Islands on the date of hiring;
  • Procuring goods and services locally; and
  • Contributing to local charitable organizations.

What Tax Benefits does the EDC offer for businesses?

Companies who are granted benefits under the USVI EDC program can qualify for the following incentives:

  • 90% credit against corporate income tax due on income derived by the business granted benefits;
  • 90% credit against personal income tax due on distributions from the business granted benefits for bona fide resident owners of the U.S. Virgin Islands;
  • 100% exemption from excise tax;
  • Reduction in the customs duty from the standard 6% to 1%;
  • 100% exemption from real property taxes due on property used in the business;
  • 100% exemption from gross receipts tax (currently imposed at a rate of 5%)
  • Tax reduction on royalty income from software developed in the USVI and sold to non-US customers

Relocating Your Business to the US Virgin Islands

If you are considering relocating your business to the US Virgin Islands, Holiday Homes of St. John can offer a full service program to suit your needs. Our key to success is our attention to detail. While there are many different ways to take advantage of the tax savings, the most common one includes taking up residency. For families, this can be a big change. We can provide a seamless service allowing you to view homes/office space on St. John, St. Thomas, and St. Croix. Our success is based on your success. Please contact us today to learn more about moving to the USVI and our relocation services.

Download Virgin Islands EDC Tax Code

For more information on EDC Tax Advantages, download or view Title 29, Chapter 12 of the Virgin Islands Tax Code.


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