Living in Trinidad and Tobago: tax at 25% then 30%, allowance of 90,000, withholding tax of 8% on distributions to non-residents

This page reports on information published by the Trinidad and Tobago Inland Revenue Division (IRD), the Ministry of Finance, and the BOFiP (French Official Tax Bulletin). The IRD indicates an income tax rate of 25 % up to 1,000,000 $ of taxable income and 30 % above that. It publishes a personal allowance of 90,000 $. A resident is taxed on their worldwide income; a non-resident, i.e., someone present for less than 183 days, is taxed only on their locally sourced income. Distributions paid to a non-resident are subject to a withholding tax of 8 % (3 % for a parent company); the budget presented on October 12, 2026, proposes increasing this to 10 % and 5 % respectively on January 1, 2027.

A foreigner must obtain a license to acquire residential land larger than one acre, and for any land interest in Tobago. The fees are in Trinidad and Tobago dollars, denoted "$" by the administration.

Tax residency: what the IRD and the law specify

The IRD's "International Tax" page states that residents are taxed on their worldwide income. It defines a non-resident as a person or company present or active in the country for fewer than 183 days in a calendar or tax year, subject to the "permanent establishment" clause of tax treaties. Non-residents are taxed on Trinidadian-source income, unless exempt or relieved by treaty. The page does not provide a detailed definition of a resident.

Section 5 of the Income Tax Act, in the version published by the IRD, taxes the income of any person, whether earned in the country or not. It includes a specific rule for individuals who are not "ordinarily resident" or "domiciled" in the country:

• Income earned abroad is taxed only on the amount received in Trinidad and Tobago;
• Income from employment or a position held in the country is treated as if it were earned in the country, whether it is received there or not.

The definition of a natural person resident is not detailed here: it is verified with the IRD.

Income tax: 25 % up to 1,000,000 $, 30 % above that

The IRD page dedicated to self-employed workers sets the following rates, based on taxable income after deductions. It dates the rate of 30 % to January 1, 2017.

The IRD TD-1 form (2023 edition) indicates a personal allowance of 90,000 $, applicable to residents and, among non-residents, to those receiving a pension from Trinidadian sources. The same form lists other deduction limits:

• Higher education costs: 72,000 $ per household;
• first acquisition of a dwelling: 30,000 $, granted for five years, limit in force since January 1, 2022;
• contributions to approved pension and savings schemes: 60,000 $, limit in force since January 1, 2022;
• National Insurance contributions (NIS): 70 % from the employee.

According to the IRD's page on small businesses, the annual return is due on April 30th. Quarterly installments (tax, business levy, health surcharge) are due on March 31st, June 30th, September 30th, and December 31st.

Taxes on payments made to non-residents

The IRD's Withholding Tax Guide is aimed at beneficiaries who are neither residents nor engaged in any activity in the country. It distinguishes between distributions (section 49 of the law), which notably cover dividends, and payments (section 51), including interest, discounts, annuities, and other annual or periodic sums.

The guide specifies that these rates can be reduced by a tax treaty; it does not list France and does not include a date or version number. The Minister of Finance presented the 2027 budget on October 12, 2026. It proposes raising the withholding tax on distributions to 10% and 5% of the previous tax year (%) as of January 1, 2027, and extending the concept of payment under Article 50(1)(b) to management, technical, and other services provided remotely to non-residents, also as of January 1, 2027. These measures are presented as proposals; their adoption is not detailed here.

Capital gains and capital income

Article 5 of the law lists short-term capital gains, interest, rental income from real estate, and dividends or other distributions as taxable sources. The IRD page on small businesses indicates that a gain realized on the sale of certain assets within twelve months of their acquisition is taxable and must be reported on the corresponding schedule of the tax return. The same page states that capital losses can be offset against capital gains in the current or subsequent years, but not against other income.

The regime for gains held for longer periods, the taxation of dividends and interest received by a resident, and the list of exempt assets are not detailed here.

Buying property: the license required for foreign investors

The Ministry of Finance guidelines on licensing under the Foreign Investment Act 1990 (document posted online in 2014) state that a foreign investor must obtain a license before acquiring:

• land located in an area designated by order of the Minister of Finance, regardless of its size;
• a residential plot of land of more than one acre;
• a commercial plot of land of more than five acres;
• any land interest in Tobago, regardless of size (legal notice no. 53 of 2007).

The same document provides examples of transactions that do not require a prior license: a one-year or shorter lease for a total area of no more than five acres, acting as executor of a will for one year, and taking possession by a mortgage holder for one year. For residential use, the license covers a single plot and a single building, completed within 36 months. The price is paid in a currency exchangeable on the international market. The stated processing time is 20 business days after receipt of all required documents. The document recommends making the sales contract conditional upon obtaining the license.

Stamp duty on deeds of sale falls under the jurisdiction of the IRD (Investment Revenue Authority). Its FAQ page mentions an exemption of up to 1,500,000 $ for first-time buyers (deeds dated January 1, 2019, or later) and up to 850,000 $ in other cases for a residential property. It does not list the rates, and the rules applicable to foreign buyers are not detailed here.

Coordination with the Franco-Trinidadian convention

According to the BOFiP (Official Bulletin of Public Finances), the convention was signed in Port of Spain on August 5, 1987, and entered into force on April 1, 1989. It applies to taxes collected by withholding at source from January 1, 1990. It deals with income taxes. The withholding rates, the method for eliminating double taxation, and the allocation of tax liability for dual residence are explained on our dedicated page for the convention.

The withholding tax rates stipulated in the treaty (dividends, interest, royalties) are detailed on our dedicated treaty page. On the French side, the tax credit for foreign-source income is declared on form 2047, which is covered in our standard information pages.

What this page does not cover

It does not detail the tax residency of individuals beyond what is published by the IRD, nor the taxation of dividends and interest received by a resident, nor longer-term capital gains, nor inheritance and gift taxes, nor property tax, nor social security, nor schemes reserved for retirees or new residents, nor residency permits. These points fall under Trinidadian law and should be verified with the IRD and the relevant authorities. Balmont Conseil is not a law firm or a local tax advisor: local taxation should be verified with a professional based in Trinidad and Tobago. Matters pertaining to France, particularly the departure declaration and the accounts to be declared, are addressed in our pages on tax residency and exit tax.

What changes depending on your situation

• The number of days spent in the country, your home address, and your resident or non-resident status in Trinidad and Tobago.
• The nature of your income: salary, pension, dividends, interest, rent, short-term capital gains.
• The property in question: land or dwelling, surface area, location, particularly in Tobago, and the license that results from it.
• Your residency situation in France and Trinidad and Tobago, year by year.

The rule depends on your situation. No results are guaranteed.