Importance of having a will

Important Factors Which Impact International Company Structures

This Article identifies three important trends that need to be considered by companies operating internationally:

  • Tax structuring and the increasing emphasis on transparency and compliance
  • Global technologies and emerging markets
  • Increasing importance of the flow of information

Each of these has a significant impact on the most appropriate corporate structure to achieve long term goals.  

Tax Structuring: Tax Transparency, Compliance and Social Responsibility

Changes in the law and public opinion in recent years, have made companies recognise that their tax affairs need to be, not only transparent and compliant, but also that they need to be seen to be responsible and to be paying a ‘fair’ amount of tax.

The United Nation’s Sustainable Development Goals (SDGs) were detailed in 2012, and consist of 17 goals that focus on economic growth, social development and environmental protection for countries and their populations. These goals require significant investment and the implementation of effective tax systems to generate the resources needed. Developing countries are being encouraged to reduce tax leakage and to direct tax revenue gains towards those most in need.

International tax cooperation and enhanced exchange of information, under the automatic exchange of information standards developed by the OECD and the G20, are additional measures designed to reduce tax evasion and under reporting of tax revenue.

The move to regulate fiscal behaviour is ongoing. International government organisations and domestic tax authorities have issued rules and legislation to curb tax evasion. For example, BEPS (OECD), ATAD (EU), and a large number of institutions and regulatory bodies are putting measures in place and re-affirming this approach.

Rules on mandatory reporting of certain tax transactions was adopted by the Economic and Financial Accounts Council (ECOFIN) of the European Commission in 2018, and exchange of this information by all member states of the EU, commenced in October 2020. 

The priority for professional advisers, such as Dixcart, continues to be to  help minimise a company’s tax cost whilst at the same time ensuring full compliance with laws and regulations relating to the company’s tax affairs.

Global Technologies and Emerging Markets

Innovation has become increasingly global due to the rate and variety of technological advances. Globalisation has led to  tasks that were performed at a single location within one country, being spread across different locations and countries.

The advantages include; carrying out the work where the best expertise exists, lower costs, and potentially mitigating risk by using alternative centres for production and/or service provision.

Internationally, China and India are now major sources of global demand, each with distinct consumer needs. In addition, both countries  are becoming sources of talent for developing new products and processes.

On the customer side, many organisations have been making efforts to move faster, and make more decisions locally. Simultaneously there have been opportunities to re-assess functions such as product development and R&D, relocate them, possibly across several countries, and integrate them across the world.

The world today is far more integrated than ever before but the rising friction between China and the US could weaken this. Covid-19 has not helped either.  The pandemic has made countries inward looking, and the demand for self-sufficiency has risen especially with regard to products relevant to health.  Hopefully, this will be a momentary ‘blip’ as the costs of deglobalisation could be high.

Increasing Importance of the Flow of Information

The digital revolution and remote working, which has accelerated significantly in 2020 and 2021 due to Covid-19, mean that organisations need to place great emphasis on the efficient flow of information, and this increases the need to keep employees happy and engaged. Each employee needs to be enabled to think and communicate effectively.

Communication and collaboration are now far more important and increasingly employees are asked for their input and are involved in helping an organisation move forward, in the right direction.

Increased accountability is now expected across the employee spectrum and there is a deeper appreciation that communication and organisational structure is central to a businesses’ success, as well as to its culture and values.

Summary and Additional Information

If you would like to discuss any of the matters raised in this Information Note, or have any other questions, please contact Laurence Binge at: advice@dixcart.com.

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The ‘Great Wealth Transfer’ – International Succession Planning

The transfer of wealth to the next generation is a critical issue. The next two years are expected to see the largest transfer of wealth from ‘Baby Boomers’ (those born between 1944 and 1964) to the younger generations. One of the biggest question is whether the inheriting generations and beneficiaries are in a position to handle whatever is passed down to them, and what are the best structures in order to achieve this?

It is not surprising that the US has the largest amount of UHNW wealth (US$16 trillion). The next “top hot spot” countries are: Germany (US$1.645 trillion), Japan (US$1.645 trillion), the UK (US$830 billion) and Brazil (US$560 billion).

Since the breakout of Covid-19, more individuals are now reviewing their estate and putting practical measures in place regarding succession planning. Although not a catalyst for encouraging individuals to review their affairs, Covid-19 has certainly reinforced the importance of it. The last year has provided a reason for many families to ‘take stock’ and to put in place or revise practical measures regarding succession planning. 

A family’s financial wellbeing can be lost or reduced in disputes over control and management of the wealth. Unfortunately, the old English expression “from rags to rags in three generations” can often become true. The ability and understanding of the next generation as to how to deal with the organisation and management of the wealth being passed to them is also a vital consideration.

Where in the world?

In a number of countries, succession planning can be complex, particularly some Latin American countries and other Civil Law countries, where forced heirship rules still apply. Unless alternative plans are put in place early, at least part of an estate, will be automatically divided between surviving family members, rather than shared according to the individual’s preference. 

International taxation is another reason why individuals may wish to put structuring measures in place. Many high-net-worth individuals and families incorporate one or more of a Corporate Family Investment Structure, a Trust or Foundation as part of their planning. But how to choose which one?

How to transfer wealth wisely? Trusts and Foundations for Succession Planning

Both Guernsey and the Isle of Man are highly favoured locations for the establishment and administration of Trusts and Foundations; each has an established and robust legal structure and specific legislation.

At an early stage, a family structure can be transferred to a single fiduciary provider or trustee with whom the family has a good relationship and understanding of the family needs. These structures usually take the form of a discretionary Trust or Foundation.

Trust structures are generally used by Common Law jurisdictions, whereas Foundations can fulfil many of the same functions in Civil Law countries. Dixcart has over forty-five years’ experience in assisting clients with managing their assets and can help you and your family decide the right structure to best suit your needs.

Private Trust Companies (PTC)

For many years, PTC’s have been the preferred vehicle for administering the assets of wealthy families. One of the main attractions of the PTC is that decisions relating to the underlying trusts, are made by directors who are carefully chosen by the family or may even be family members. There are a number of variants of the PTC, which can be limited by either shares or guarantee or even with separate classes of shares for voting purposes. Careful consideration as to the level of control exerted over the PTC needs to be planned so as not to lead to tax implications.

Whilst PTC’s remain a popular specialist solution, our Guernsey and the Isle of Man offices can offer a simpler structure through the Private Trust Foundation (PTF).

Private Trust Foundations (PTF)

The PTF removes the need for any ownership layers above the PTC and can simplify the structure and therefore administration and cost. The PTF is established under the relevant law for either of the two islands with the sole purpose of acting as trustee of the trusts for the benefit of an individual or family.

The Law will make it clear that a Foundation, upon establishment, has its own legal personality, independent from that of its founder and any foundation officials. The PTF will be run and managed in a similar way to a PTC with the involvement of a local licensed fiduciary, such as Dixcart, but with the significant advantage that, as an orphan vehicle, it does not have any other owners or controllers.

Additionally, family members or other trusted advisors can be appointed to the PTF council, which is responsible for acting as trustee to the underlying family trusts.

Corporate Family Investment Structures

A family investment company is a company where the shareholders are drawn from different generations of the same family. The use of a family investment company has grown significantly in recent years, particularly in situations where it has become difficult to pass value into a trust, without incurring an immediate tax charges but there is a desire to continue to have some control and influence over the family’s wealth preservation. 

More information regarding the benefits of a family investment company is available on our website.  

Summary

As wealth owners move from one jurisdiction to another, an opportunity to restructure the ownership of family wealth for succession planning purposes presents itself. Simultaneously, this provides an opportunity to implement the initial organisation of an ongoing family office and the tax neutral organisation of family affairs.

Dixcart works with each family wealth structure to coordinate communication with the family and to provide access to, and liaison with, additional independent, professional advisers.

Plans can be put in place to allow for changes in a family’s structure and relationships to be recognised. Dixcart can coordinate variations in structure to accommodate individual and specific family wishes, whilst complying with the overall family office policy.

If you would like further information, please speak to your usual Dixcart contact or to one of the professional advisers in the Guernsey and Isle of Man offices: advice@dixcart.com.

Each of the nine offices in the Dixcart Group provide wealth management services. In addition to Guernsey and the Isle of Man, the Dixcart offices in Cyprus, St Kitts & Nevis and Switzerland are licensed to offer trust services.

Dixcart Trust Corporation Limited, Guernsey: Full Fiduciary Licence granted by the Guernsey Financial Services Commission. Guernsey registered company number: 6512.

Dixcart Management (IOM) Limited is licensed by the Isle of Man Financial Services Authority.

Türk Vatandaşlarına Veya Şirketlerine Ait Yatırımların

Giriş

Yabancı portföy yatırımları olan Türk hissedarlara, özellikle de bu yatırımlarını İsviçre’de tutanlara, bu yatırımların mülkiyetini bir İsviçre şirketinde tutma seçeneğini değerlendirmelerini öneriyoruz.

Başlıca avantajları nelerdir?

a) İsviçre’de kâr %11,9 ila %14 aralığında vergilendirilir; Türkiye’de ise %22’lik bir kurumlar vergisi veya %40’lık bir bireysel gelir vergisi (marjinal vergi oranı) uygulanır.

b) Türkiye’deki %40’lık vergi oranının aksine sıfır vergi uygulanması sayesinde özkaynak değerinde dalgalanma yaşanmaz.

c) Genel Raporlama Standardı (CRS) yönetmelikleri gereği Türkiye’ye sağlanması gereken bilgi miktarı azalır.

d) Türkiye ile İsviçre arasında 1 Ocak 2013 tarihinden bu yana yürürlükte olan bir çifte vergi anlaşması vardır.

Türkiye’deki Denetime Tabi Yabancı Şirket (CFC) Mevzuatı ve İsviçre Kurumlar Vergisi

Yukarıda açıklandığı gibi, İsviçre Şirketleri %11,9 ila %14 arası değişen (İsviçre’nin hangi kantonunda bulunduklarına bağlı olarak) kurumlar vergisi oranları ile cazip bir fırsat sunar. Bu da önemli bir avantajdır zira Türkiye’deki CFC kuralları uyarınca yabancı şirketin kurumsal vergisi %10’un üzerinde olduğunda yabancı şubelerin dağıtılmamış geliri ödenememektedir.

Yatırım Yapılan Para Birimindeki Dalgalanmalar

Yatırımlar Türkiye’deki bireysel ve kurumsal vergi mükelleflerinin mülkiyetinde olduğunda, Türk Lirasının büyük para birimleri karşısında dalgalanması vergiye tabi döviz kazançlarını tetikleyebilir. Türkiye’de, yatırım yapılan para birimindeki dalgalanmalar, reel bir kazanç sağlamasa bile vergilendirilir. İsviçre şirketleri ise reel bir kazanç elde etmedikçe yatırım yaptıkları para birimindeki dalgalanmalardan ötürü vergi ödemez.

İsviçre’de özkaynaklar satılmadıkları ve reel bir kâr sağlamadıkları müddetçe mali tablolara satın alma bedeliyle kaydedilir. 

Stopaj Vergisi

İsviçre şirketi bir Türk hissedara kâr payı dağıtırsa, bireysel hissedarlara %15, kurumsal hissedarlara ise %5 oranında stopaj vergisi uygulanır.

Türkiye’de gelir vergisine karşılık bir vergi indirimi imkanı sunulur.

Bilgi Alışverişi – İsviçre’deki Portföy Yatırımları

İsviçre ile Türkiye arasında bilgi alışverişi mevzuatı Ocak 2021’de yürürlüğe girmiştir ve 1 Ocak – 31 Aralık 2021 rapor dönemini kapsayan ilk veri alışverişi 2022’de gerçekleşecektir.

Alınıp verilecek bilgiler, İsviçre şirketinin Genel Raporlama Standardı (CRS) sınıfına göre değişecektir. İsviçre Şirketi tarafından sağlanan hizmetlere ve şirketin İsviçre’deki faaliyetlerine bağlı olarak, bu şirketler ve intifa hakkı sahipleri, CRS kuralları kapsamında nispeten şeffaf olarak kabul edilir. 

Daha Fazla Bilgi

Türk vatandaşlarının ve / veya şirketlerinin portföy yatırımlarını bir İsviçre şirketinde tutmaları hakkında daha fazla bilgi edinmek isterseniz, lütfen İsviçre’deki Dixcart ofisinden Christine Breitler veya Thierry Groppi ile iletişime geçin:  advice.switzerland@dixcart.com

St Kitts & Nevis International Corporations: Recent Changes and Key Characteristics

Tax Changes Introduced at the End of 2020

In late 2020, the St Kitts & Nevis Inland Revenue Department (IRD) issued guidance notes regarding the treatment of international companies in relation to federal tax.

  • Where a company is managed and controlled outside the Federation, for example in Europe, and the company does not have a permanent establishment in St Kitts & Nevis (just a registered office and registered agent), the company is classified as ‘non-resident’, and is only subject to tax on income arising in St Kitts & Nevis.

All companies must complete a simplified annual tax declaration, in which they state whether there are local connections or whether the company should be considered non-resident, and will not therefore be subject to tax in Nevis.

It is anticipated that these guidelines will formally become law during 2021.

Confidentiality

  • Nevis has no public or Government registers for directors, shareholders or beneficial owners. All information is maintained at the registered office, of the company, by the registered agent.
  • Corporate records can be kept anywhere in the world, but must be readily available to the registered agent, if required.

Incorporation and Maintenance of Nevis International Companies

  • Nevis structures can be established within 24 hours.
  • Sole directors are permissible, with no obligation to appoint officers.
  • Company names can be reserved instantly and free of charge, for up to 10 days.
  • As the Registry is smaller than in many comparable jurisdictions, there is a much wider selection of names available.
  • Certificates of ‘Incumbency and Good Standing’ can be issued with Apostille within 48 hours.
  • Companies can be incorporated to conduct any lawful business.
  • The directors and officers can be located anywhere in the world and can be a person or legal entity.
  • Authorised share capital can be denominated in any recognised currency.
  • The procedures for Nevis IBCs to amend their articles of incorporation, merge, or consolidate with foreign corporations or other Nevis corporations, are relatively simple.
  • It is easy to redomicile foreign entities into and out of Nevis and ‘emergency redomicile’, is available for foreign entities, if required.
  • St Kitts & Nevis has a number of consulates overseas, including one in Dubai. This makes legalisation of company documents in these locations easier and significantly less expensive than for other jurisdictions.
  • Nevis Limited Liability Corporations (LLCs), can easily be converted into IBCs.
  • There is no obligation to file annual returns or financial statements.

Additional Information

If you require additional information regarding St Kitts & Nevis IBCs and/or the jurisdiction of Nevis, please speak to your usual Dixcart contact, or to Graham Sutcliffe at the Dixcart office in Nevis: advice.nevis@dixcart.com.

St Kitts & Nevis International Business Corporations, Wealth Management and Citizenship by Investment

 St Kitts & Nevis as a Financial Centre

St Kitts & Nevis is a modern, forward-thinking financial centre located within the Eastern Caribbean.  It has a unique history of legislative and fiscal independence and is at the forefront in providing practical solutions to an increasingly mobile and international client base.

Nevis has developed a number of attractive options, over the years, to meet corporate and individual needs, allowing clients to organise their affairs in an efficient and confidential manner.

International Business Corporations

Incorporation and Maintenance of Nevis International Companies

  • St Kitts & Nevis structures can be established within 24 hours.
  • Sole directors are permissible, with no obligation to appoint officers.
  • Company names can be reserved instantly and free of charge, for up to 10 days.
  • As the Registry is smaller than in many comparable jurisdictions, there is a much wider selection of names available.
  • Certificates of ‘Incumbency and Good Standing’ can be issued with Apostille, within 48 hours.
  • Companies can be incorporated to conduct any lawful business.
  • The directors and officers can be located anywhere in the world and can be a person or legal entity.
  • Authorised share capital can be denominated in any recognised currency.
  • The procedures for Nevis IBCs to amend their articles of incorporation, merge, or consolidate with foreign corporations or other Nevis corporations, are relatively simple.
  • It is easy to redomicile foreign entities into and out of Nevis and ‘emergency redomicile’, is available for foreign entities, if required.
  • St Kitts & Nevis has a number of consulates overseas, including one in Dubai. This makes legalisation of company documents in these locations easier and significantly less expensive than for other
  • Nevis Limited Liability Corporations (LLCs), can easily be converted into IBCs.
  • There is no obligation to file annual returns or financial statements.

Tax Changes Introduced at the End of 2020

In late 2020, the St Kitts & Nevis Inland Revenue Department (IRD) issued guidance notes regarding the treatment of international companies in relation to federal tax.

  • Where a company is managed and controlled outside the Federation, for example in Europe, and the company does not have a permanent establishment in St Kitts & Nevis (just a registered office and registered agent), the company is classified as ‘non-resident’, and is only subject to tax on income arising in St Kitts & Nevis.

All companies must complete a simplified annual tax declaration, in which they state whether there are local connections or whether the company should be considered non-resident, and will not therefore be subject to tax in Nevis.

It is anticipated that these guidelines will formally become law during 2021.

Confidentiality

  • Nevis has no public or Government registers for directors, shareholders or beneficial owners. All information is maintained at the registered office, of the company, by the registered agent.
  • Corporate records can be kept anywhere in the world, but must be readily available to the registered agent, if required.

Opportunities to Use Nevis structures in a Tax Neutral and Confidential Manner

A number of different structures are available:

  • Private Trustee Company (PTC)

Nevis remains a popular jurisdiction for PTCs, for both Nevis International Exempt Trusts, and as trustees of trusts created under the laws of other jurisdictions.

  • Officer Companies and Nominee

The use of a Nevis company to act as a ‘Corporate Officer’ or as a ‘Nominee’ is possible, and as these have ‘non-income status’, they are not adversely affected by recent tax changes.

  • Limited Liability Companies as Unlimited Partners

Nevis LLCs are well placed to act as the unlimited partner in a Limited Partnership. They do not suffer significant tax leakage, even in light of recent tax changes, as the profit participation of the unlimited partner can be set at a lower level than that of the limited partner.

Wealth Management

Nevis Multi-Form Foundations (MFF’s)

 Nevis MFFs are very flexible and can take on the identity of a foundation/a trust/a company or a partnership.

  • They have their own legal personality, are tax exempt and can operate with a high level of commerciality. In addition, there are special asset protection rules, within the relevant Ordinance, which deter frivolous law suits.

Foreign and/or domestic corporations and/or trusts can be converted to a foundation and the ‘form’ of the foundation can be changed to another ‘form’, so that, for example, a Trust Foundation can be converted to a Partnership Foundation.

Nevis foundations and trusts can be used to own Nevis IBCs and/or LLCs.  Nevis MFFs and trusts are both exempt from corporate tax.

There are many uses for Nevis foundations, including; support for education, succession planning, asset protection, and the provision of confidentiality to help protect the security of junior members of a family.

 Nevis International Exempt Trusts

The jurisdiction of Nevis is a very good location for a trust, where the benefits include:

  • Forced heirships are not recognised.
  • Rules disallowing ‘perpetuity’ do not apply, unless otherwise provided for, and therefore a trust can have an unlimited duration.
  • Foreign judgements are not enforceable and would need to be re-presented in Nevis, where applicable.
  • In certain circumstances, several separate trusts can be combined into one trust, or a single trust can be divided into several trusts.

 Citizenship By Investment

Dixcart Nevis, is a very experienced provider of Citizenship by Investment services and has successfully helped many families through the process to achieve citizenship. This programme enables successful applicants to hold a St Kitts & Nevis passport.

A major advantage of St Kitts & Nevis citizenship is that it guarantees receipt of a St Kitts & Nevis passport, with full Schengen travel rights throughout Europe.

There are three routes to citizenship (2 relate to real estate, and 1 one relates to a ‘one off donation’).  Depending on the origin of the applicant and the quality of the application, a ‘Fast Track’ can be selected, with approval, in principle, being achieved in between 45 and 90 days.

Key Characteristics and Benefits of a St Kitts & Nevis Passport

  • Applicants do not need to travel to St Kitts & Nevis for the application and there are no annual residency rules to maintain the passport.
  • A single application can include children up to a maximum age of 30 and parents with a minimum age of 55, as well as unmarried, dependent siblings up to the age of 30.
  • Passport holders enjoy full Schengen privileges and can travel to approximately 156 countries worldwide, either on a visa free, or visa on entry basis.
  • If holders of the passport choose to move to St Kitts & Nevis there is no personal income tax, no gift tax, no death duties, no estate tax, no inheritance tax and no capital gains tax on worldwide income.
  • The passport allows the holder to reside in other Caribbean Community countries (Caricom) if they wish to do so. There are 15 Caricom member states.

 Additional Information

If you require additional information regarding the jurisdiction of St Kitts & Nevis please speak to John Mellor at the Dixcart office in Nevis: advice.nevis@dixcart.com.

St Kitts

Why Nevis? – Corporates, Wealth Management and Citizenship

Background

Nevis is a modern forward-thinking financial centre located in the Eastern Caribbean.  Its unique legislative and fiscal independence enables it to be at the forefront of delivering practical solutions to an increasingly mobile and international client base.

Over the years, Nevis has developed several opportunities to meet corporate and individual needs and to enable affairs to be organised in an efficient and confidential manner.

Corporates

Important Recent Developments

In late 2020, the St Kitts & Nevis Inland Revenue Department (IRD) issued guidance notes regarding the treatment of international companies in relation to federal tax.

Where a company is managed and controlled outside the Federation, for example in Europe, and the company does not have a permanent establishment in St Kitts & Nevis (just a registered office and registered agent), the company is classified as ‘non-resident’, and is only subject to taxes on income arising in St Kitts & Nevis.

All companies complete a simplified annual tax declaration, in which they state whether there are local connections or whether the company should be considered non-resident and will not therefore be subject to tax in Nevis.

It is anticipated that these guidelines will become law during 2021.

Nevis Resident Companies

Nevis companies with management and control exercised in and from Nevis will be subject to local corporate tax, currently at the rate of 33%

What Are the Corporate Opportunities in Nevis?

The new IRD guidelines provide much needed clarity on the ‘post exemption’ Federal Tax Regime.  Non-resident companies now have greater security and re-assurance that their activities will not be taxed in St Kitts & Nevis.

Another reason why Nevis remains popular include its continued privacy from public scrutiny, as it does not operate Government or Public Registers detailing beneficial ownership.  Companies can also be established and managed with exceptional efficiency.  Nevis does not operate a substance test regime.

Nominee and Officer Companies

The use of Nevis companies to act as corporate officers or as nominees is still possible and due to the nature of their non-income status, such use is unlikely to generate a tax liability.

Limited Liability Company as Unlimited Partners

Nevis LLC’s are ideal to act as the unlimited partner in a Limited Partnership, and would not suffer significant tax leakage, despite the recent corporate tax changes in Nevis.

Wealth Management

Pre-migration Wealth Planning for internationally mobile families

Nevis offers a good opportunity for pre-migration wealth planning.

Where a family is relocating to a country which is not their country of birth, for example, the UK, USA, or a country in the EU, they will often have tax planning opportunities which should be exercised before they become resident in the new country.  This often allows them to use special tax rulings and structures which help the family to segregate and protect its worldwide wealth. In such a scenario, a tax neutral third country, such as Nevis can offer some significant benefits.

It is important to note, that this planning needs to be undertaken well in advance of the family or individual members of a family taking up their new residence.

Private Trustee Company (PTC)

Nevis remains a popular jurisdiction to operate a PTC, both for Nevis International Exempt Trusts and as trustees of trusts, created and currently situated, in other jurisdictions.

Nevis Holding Foundations and Trusts

Nevis foundations and trusts can be used to own Nevis IBCs and/or LLC’s. Nevis Multiform Foundations and Trusts are exempt from corporate tax.

Nevis Multi-Form Foundations (MFF’s) the Possibilities

Why are they Popular?

Multiform Foundations are increasingly being used for certain types of activity and asset protection. They can be particularly beneficial as MMF’s can adopt the identity of a foundation, trust, company, or partnership, and are tax exempt in St Kitts and Nevis, regardless of where they are managed.   

Other benefits include the fact that they have their own legal personality and offer attractive wealth structuring opportunities. In addition, the MFF Ordinance contains special asset protection rules which deter frivolous lawsuits.

Conversion to a MFF

Foreign or domestic corporations and/or trusts can be converted to a foundation and the ‘form’ of the foundation can be changed to another form, for example, a Trust Foundation can convert to a Partnership Foundation.

There are many reasons that a Nevis Foundation might be chosen and these include; education support, succession planning, asset protection, and the provision of confidentiality for separate funds to protect junior members of the family.

Using Family Foundations to Protect the Identity of Vulnerable Members of a Family whilst Studying Abroad

Where a family lives in a country where the protection of their personal identity is very important, having the ability to protect their confidentiality can be extremely valuable.

An example would be, a Founder establishes a Nevis Educational Foundation, for the direct purpose of providing for the education of a junior member of the family who will be studying abroad for a specific period of time.

The Foundation would then open a bank account which can also provide a credit card. In this manner the education expenses and living accommodation, can be paid by the foundation, directly from its bank account and the daily living expenses can be paid through the credit card. This can seriously limit the amount of exposure of the child’s identity and also provide some control and oversight of their spending.

Nevis International Exempt Trusts

The jurisdiction of Nevis is a very good location for a trust, where the benefits include:

  • Forced heirships are not recognised.
  • Rules disallowing ‘perpetuity’ do not apply, unless otherwise provided for, and therefore a trust can have an unlimited duration.
  • Foreign judgements are not enforceable and would need to be re-presented in Nevis, where applicable.
  • In certain circumstances, several separate trusts can be combined into one trust, or a single trust can be divided into several trusts.

Citizenship

Citizenship By Investment

Dixcart Nevis, is a very experienced provider of Citizenship by Investment services and has successfully helped many families through the process to achieve citizenship. This programme enables successful applicants to hold a St Kitts & Nevis passport.

A major advantage of St Kitts & Nevis citizenship is that it guarantees receipt of a St Kitts & Nevis passport, with full Schengen travel rights throughout Europe.

There are three routes to citizenship (2 relate to real estate, and 1 one relates to a ‘one off donation’).  Depending on the origin of the applicant and the quality of the application, a ‘Fast Track’ can be selected, with approval, in principle, being achieved in between 45 and 90 days.

Cost Reduction: Citizenship Applications

At the start of March 2021, the St Kitts & Nevis Government announced a cost reduction for applications to the ‘Sustainable Growth Fund’ one of the routes to gain citizenship. This cost reduction is available until 31 December 2021.

The cost for an applicant and spouse is now $150,000, a cost reduction of $25,000. The cost for a family of four is also now $150,000, a cost reduction of $45,000.  

Key Characteristics and Benefits of a St Kitts & Nevis Passport

  • Applicants do not need to travel to St Kitts & Nevis for the application and there are no annual residency rules to maintain the passport.
  • A single application can include children up to a maximum age of 30 and parents with a minimum age of 55, as well as unmarried, dependent siblings up to the age of 30.
  • Passport holders enjoy full Schengen privileges and can travel to approximately 156 countries worldwide, either on a visa free, or visa on entry basis.
  • If holders of the passport choose to move to St Kitts & Nevis there is no personal income tax, no gift tax, no death duties, no estate tax, no inheritance tax and no capital gains tax on worldwide income.
  • The passport allows the holder to reside in other Caribbean Community countries (Caricom) if they wish to do so. There are 15 Caricom member states.

Additional Information

If you would like further information regarding the jurisdiction of Nevis and the advantages that it offers, please contact John Mellor on advice.nevis@dixcart.com.