Key Takeaways

• Cannabis law and regulations:
  • The Rules and Regulations for the Virgin Islands Cannabis Program.
• Licenses available:
  • Cultivator; Manufacturer; Dispensary; Research and Development; Cannabis Testing Facility.
• Permits available:
  • Micro-Cultivator; Adult-use Lounge; On-site Cannabis Use; Cannabis Temporary Use; Transporter; Collective Sacramental Cultivation Certificate.
• Legal products:
  • “Cannabis Product means concentrated Cannabis products and Cannabis products that are comprised of Cannabis and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures.” Edible Cannabis Products shall contain no more than 100 milligrams of THC per unit of sale and are separated or easily separable into single servings with no more than 10 milligrams of THC in a single serving.
  • The consumption of Cannabis Products by smoking must occur in accordance with The Virgin Islands Smoke-free Act.
  • Vaporizing Cannabis Items shall not be considered smoking for the purposes of the cannabis regulations or The Virgin Islands Smoke-free Act.
• Taxes:
  • There is an 18% excise tax charged on adult-use cannabis sales.
  • If cannabis products are purchased by a non-resident of the U.S. Virgin Islands, the non-resident consumer will have to pay a Cannabis Fee of $20 during the purchase.

Medical Cannabis Legalization

The U.S. Virgin Islands legalized medical cannabis in 2014 through a voter-approved referendum. On January 19, 2019, U.S. Virgin Islands Gov. Albert Bryan Jr. signed into law the Medical Cannabis Patient Care Act, setting up a medical cannabis program for both Virgin Islands residents and medical tourists.

The Virgin Islands Medical Cannabis Patient Care Act (the Act) allows qualified patients to obtain, possess and consume medical cannabis for therapeutic purposes.

The qualifying conditions are cancer, glaucoma, HIV/AIDS, hepatitis C, amyotrophic lateral sclerosis, Crohn’s disease, ulcerative colitis, agitation of Alzheimer’s disease, PTSD, traumatic brain injury, hospice care, Parkinson’s disease, Huntington’s disease, neuropathic pain, autism, arthritis, diabetes, chronic pain, opiate use disorder, or the treatment of these conditions or conditions that cause cachexia or wasting, severe nausea, seizures, or severe and persistent muscle spasms.

Qualifying residents can possess up to 4 ounces of medical cannabis, 1 ounce of concentrate and 2 ounces of products such as edibles at a time and possession for qualifying non-residents is limited at 3 ounces of medical cannabis.

On August 10, 2022, the V.I. Cannabis Advisory Board (VICAB) approved regulations for its medical cannabis program. However, regulations for the medical cannabis market are now included in the Virgin Islands Cannabis Program which is discussed below. Hence, an individual or business entity wishing to start a cannabis business in Virgin Islands should refer to the Virgin Islands Cannabis Program regulations.

The Virgin Islands Cannabis Program

On January 18, 2023, the U.S. Virgin Islands legalized adult-use cannabis after Gov. Albert Bryan Jr. signed into law the legalization bill, allowing those 21 and older to possess up to 2 ounces of cannabis, 14 grams of concentrate and 1 ounce of products such as edibles for recreational uses.

Dispensaries will levy a tax of at least 18% on recreational cannabis sales. If cannabis products are purchased by a non-resident of the U.S. Virgin Islands, the non-resident consumer will have to pay a Cannabis Fee of $20 during the purchase.

The Office of Cannabis Regulation (OCR) was given the exclusive authority to create rules and regulations related to the cultivation, production, sale, provision, testing, licensing and use of cannabis. On April 17, 2024, the Virgin Islands Cannabis Advisory Board (VICAB) approved regulations for the Virgin Islands Cannabis Program which combines the medicinal and adult-use cannabis programs. All licensed cannabis establishments will be able to operate in both the medical and adult-use cannabis markets.

How to Start a Cannabis Business in the U.S. Virgin Islands?

The OCR has shared estimated dates for when application windows open for each license type. The application process will be merit-based with the available licenses being awarded to applicants with the highest application score. Certain licenses are limited in quantity per island, as outlined below:

• Thomas
  • Up to 7 cannabis dispensary licenses
  • Up to 15 cannabis cultivation licenses
  • Up to 1 testing facility license
• Croix
  • Up to 7 cannabis dispensary licenses
  • Up to 15 cannabis cultivation licenses
  • Up to 1 testing facility license
• John
  • Up to 3 cannabis dispensary licenses
  • Up to 5 cannabis cultivation licenses
  • Up to 1 testing facility license

As of October 16, 2025, the OCR has issued 13 conditional cannabis cultivation licenses and is in the process of reviewing applications for dispensary licenses.

On October 2025, the OCR began to accept applications for cannabis manufacturing licenses. The deadline for submitting an application is December 19, 2025.

A Cannabis Manufacturing Licensee and a Cannabis Dispensary Licensee must purchase or acquire 15%, as measured by weight, of the Cannabis that it stocks in its inventory from Micro-Cultivation Permittees.

What Types of Cannabis Products are Available in the Virgin Islands

“Cannabis Product means concentrated Cannabis products and Cannabis products that are comprised of Cannabis and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures.” Edible Cannabis Products shall contain no more than 100 milligrams of THC per unit of sale and are separated or easily separable into single servings with no more than 10 milligrams of THC in a single serving.

The consumption of Cannabis Products by smoking must occur in accordance with The Virgin Islands Smoke-free Act. Vaporizing Cannabis Items shall not be considered smoking for the purposes of the cannabis regulations or The Virgin Islands Smoke-free Act.

Cannabis Consumption Lounges in the Virgin Islands

There are three permits in Virgin Islands: Adult-use lounge permit / On-site cannabis use permit / Cannabis temporary use permit.

“A Person in possession of a valid Adult Use Lounge Permit; Cannabis Use Permit or Temporary Cannabis Use Permit is authorized to undertake and allow the restricted consumption of Cannabis Products by individuals twenty-one years of age or older in an on-site Designated Consumption Area licensed and authorized by the OCR by individuals. There shall be no sale of Cannabis, Cannabis Products, or Cannabis accessories in or within the Adult Use Lounge, except that an Adult Use Lounge may be owned and operated by a Cannabis Dispensary Licensee.”

Cannabis Consumption Lounges. Which States Allow Cannabis Consumption Lounges?

Cannabis Delivery in the Virgin Islands

The OCR may authorize Third-Party Vendors to transport and Deliver Cannabis Items and authorize Licensees to transport Cannabis Items cultivated, manufactured, processed, stored, and packaged in association with their business operations and at their Licensed Premises pursuant to the requirements of this section.

Cannabis Items may only be transported by Transporters between Licensed Premises, between a Licensed Premises and a Testing Facility, and between a Dispensary Licensee and a Qualified Patient or a Qualified Patient’s Designated Caregiver.

Cannabis Courier Service by State

U.S. Virgin Islands Cannabis Market Infographics

Virgin Islands Hemp Industry