St. Barts enjoys a privileged tax status which tends to attract high-net-worth individuals. Once you have been a resident on the island for more than five years, you will be exempt from income tax. You will also be exempt from VAT, wealth tax (on real estate held on the island), and any other type of taxation. If you are planning ahead, you’ll be interested to note that there is no inheritance tax liability for property held on St. Barts.