How the RTPark’s 90% Tax Credit Opens the Door for Business Growth on St. Croix and St. Thomas

Ninety percent. That’s the size of the income tax credit waiting for a qualifying company willing to build something real on St. Croix or St. Thomas, and it sits at the center of the Virgin Islands Research and Technology Park’s mission: giving tech and knowledge-based companies a substantial incentive to invest in the U.S. Virgin Islands. For entrepreneurs weighing where to expand, and for a community watching its tech sector take shape, the RTPark is a genuine growth story, not just a line in a brochure. Coldwell Banker® works with clients across both islands through Coldwell Banker St. Croix Realty and Coldwell Banker St. Thomas Realty, and a fair number of them are building something new here because the RTPark made the math work.

More than 70 companies now hold RTPark approval across the territory’s three islands, and the flagship benefit brings a company’s effective tax rate down to roughly 2.31 percent on qualifying income. Real property used in an approved business is exempt from real property tax. Gross receipts on that business income are exempt as well, and customs duties on qualifying materials drop from 6 percent to as little as 1 percent. Owners who are bona fide residents of the USVI receive the same 90 percent reduction on their dividends and distributions, which turns a strong tax incentive into a genuine reason to put down roots.

What a 90 Percent Tax Credit Means for a Growing Business

A tax credit at this scale changes what a company can afford to build next. Money that would have gone to federal or territorial income tax stays inside the business instead, which for an early-stage or scaling company usually means a faster hire, a longer product runway, or capital set aside to expand a physical footprint. RTPark structures this through a Protected Cell arrangement, where an approved company operates as a cell under the RTPark’s public corporation status, an autonomous instrumentality of the USVI government affiliated with the University of the Virgin Islands. The credit applies to income sourced from or effectively connected with conducting business in the USVI, which is the RTPark’s way of rewarding companies that build something real here rather than simply filing paperwork.

The withholding picture supports the same goal. Payments of interest carry no withholding tax at all, and dividends and royalties paid to non-resident owners are withheld at a reduced 4 percent, well under what a company would face structuring the same payments from most U.S. jurisdictions. For a founder comparing where to grow the business, that difference compounds year over year and often tips the decision toward the USVI.

A Program Built to Grow the Whole Ecosystem, Not Just One Company

RTPark’s benefits reach beyond a single business’s tax bill. The organization runs its own workforce and community programs, including the Professional Pathways Program, which connects students and emerging professionals with internships at RTPark client companies, and the STEM Enrichment Program, which brings tech and innovation skills to students year round. Accelerate VI supports early-stage companies as they grow into contributors to the broader economy. RTPark funds all of this through the application fees paid by the businesses it approves, so every company that joins the program is directly investing in the training pipeline that will staff its own growth on the islands. Companies expanding here are not arriving into a vacuum. They are stepping into a program built to grow talent and opportunity alongside them.

That same growth shows up in real estate, and it is worth framing accurately: as companies expand their teams and their physical presence, they create real demand for office space, for homes, and for the kind of investment that keeps both islands’ commercial and residential markets active. It is a byproduct of genuine business growth, and one more reason the RTPark’s incentive program matters well beyond the balance sheet of any single company.

What We See Working With RTPark Clients Directly

Companies arriving through the RTPark program tend to ask sharper questions earlier in the process than a typical relocation client, because they have already run the tax math before they ever call an agent. What they usually haven’t worked through yet is the residency timeline, since the dividend and distribution reduction requires bona fide USVI residency, which carries its own physical presence and tax home requirements separate from the business approval itself. Coordinating a home or office decision around that residency clock, rather than after it, is where a broker’s real estate guidance and a client’s tax counsel need to be talking to each other from day one.

Frequently Asked Questions About the RTPark Tax Incentive Program

What is the RTPark tax incentive program?

The RTPark tax incentive program grants approved companies a 90 percent credit against their USVI income tax liability, along with exemptions on real property tax, gross receipts tax, and excise tax, plus reduced customs duties and withholding rates. The program is administered by the University of the Virgin Islands Research and Technology Park Corporation, a public corporation and autonomous instrumentality of the USVI government.

Which companies qualify for RTPark benefits?

RTPark targets technology and knowledge-based businesses, and qualifying income must be sourced from or effectively connected with conducting a trade or business in the USVI. More than 70 companies currently hold RTPark approval across the territory.

How long do RTPark benefits last?

Benefits are initially available for 15 years, with a renewal period of ten years, followed by additional five-year renewal periods subject to Board approval. That length gives a company room to plan its growth, not just its tax filings, around a long-term commitment to the islands.

Do business owners personally benefit from the tax credit, or only the company?

Both. If a beneficiary’s owners are bona fide residents of the USVI, they receive the same reduction on their dividends and allocations from the business. Salaries remain fully taxable, so the structure specifically rewards ownership income tied to genuine island residency.

How does RTPark support the broader community, not just approved companies?

RTPark funds workforce and education programs, including the Professional Pathways internship program, the STEM Enrichment Program, and the Accelerate VI accelerator, all financed through the application fees businesses pay to join. Every approved company is contributing to the talent pipeline that supports the islands’ tech sector as a whole.

Can U.S. citizens purchase property in the U.S. Virgin Islands?

Yes. U.S. citizens can purchase property in the USVI with the same ease as purchasing on the mainland, since the territory operates under U.S. law with no additional foreign-buyer restrictions.

If you have questions or would like personalized guidance, we invite you to connect with our team.