Malta

Malta – The Package of Support Available for Research and Development Projects

Background

Malta has long been a popular choice for companies and new businesses and is a reputable EU jurisdiction. An exceptional package of support and financial incentives is available to innovative companies seeking to establish themselves and/or extend operations within Malta.

 Companies based in Malta have access to national and EU funding. Dixcart Malta can assist with applications to Malta Enterprise, the Government agency which offers support to companies at different stages of their lifecycle.

Please see below a summary of the support, grants and repayable loans that are available, the Dixcart office in Malta can provide further details: advice.malta@dixcart.com

1. Research and Development Feasibility Studies

Research and development initiatives are associated with high risk, and therefore R&D Feasibility Studies are a vital component, to determine that the critical elements of the proposed research project are based on sound principles.

Businesses, employing at least two full-time employees, and intending to carry out an Industrial Research and Experimental Development Project may benefit from financial assistance.

A cash grant is available, for six month projects, to cover the salaries of research personnel, and costs associated with undertaking ‘contractual research and technical knowledge’.

  • Businesses carrying out R&D Feasibility Studies can receive up to €50,000 per project, up to a maximum 70% of eligible costs, depending on the size of the business. Aid is capped at €5,000 per full-time employee employed by the applicant at the time of application. In situations where an applicant established his/her company in the twenty-four months preceding the date of application, a grant of up to €20,000, may still be approved, irrespective of the number of full-time employees.

2. Cash Grant Towards Wage Costs 

This grant is designed to support industrial research and/or experimental development carried out to gain knowledge that leads to the development of innovative products and solutions.

Two grants are available:

  • A cash grant on wage costs of up to €500,000.
  • A tax credit on; instruments, equipment (depreciation costs) and materials and supplies, relating to a contractual research and technical knowledge project that last up to thirty-six months. This grant is available up to a maximum 25-60% of eligible costs, depending on the size of the business.

3. Aid for Research and Development Projects

This incentive allows companies to claim tax credits on costs incurred directly or indirectly in carrying out an R&D project or projects relevant to the company’s trade. Eligible projects must seek to make advances in a field of science or technology through the ‘resolution’ of scientific or technological uncertainty.

  • Pre-approval, prior to the commencement of a project, is not required for this grant. This grant is available up to a maximum of 45% of eligible costs, depending on the size of the enterprise with a maximum €15million per project being available. 

4. Financing for Business Development

This incentive is targeted towards companies engaged in; manufacturing, industrial services, digital technology, biotechnology, or in other innovative or high value-added operations, as approved by Malta Enterprise.

  • The maximum aid available per business is €200,000 over three rolling fiscal years. The approved financing must be directly related to the operation of the business. It can be used to cover; relocation costs of key personnel, payroll costs, lease and rental of real estate, services directly related to the business operations, rights and licenses, relocation of tangible assets, procurement of tangible assets and utility costs.

5. Skills Development Scheme

This scheme is specifically designed to help companies to provide training to create and update the skills and knowledge of their workforce.

  • Support is available in relation to eligible costs, as follows; wage costs of trainees and trainers, direct contact hours of training service providers, air travel expense to send trainees to foreign training locations, air travel expense to bring trainers to Malta, rental of training rooms, tools, and equipment. The grant available  is a maximum of eligible costs; 70% for a ‘small’ business, 60% for a ‘medium’ business, and 50% for a ‘large’ business. The maximum grant available is €2,000,000 per Skill Development Project.

6. Start-up Finance

  • Grants of up to €400,000 are available in Malta, unless the business is an innovative business, in which case the potential grant increases to a maximum €800,000.

The following criteria apply:

  • the company (following an evaluation by an external expert) must be producing/developing new products/services/processes which are substantially improved OR
  • Research and development costs represent at least 10% of the firm’s operational costs, in at least one of the three preceding years, or, in the case of a start-up, in the audit of the fiscal year, preceding the grant.

This ‘grant’ is offered as a repayable advance, unless the company is interested in taking part in the ‘Accelerator Programme’, please speak to Dixcart Malta for further information: advice.malta@dixcart.com.

The repayable advance support can be used to cover several eligible costs:

  • Co-investment in payroll costs: to finance up to 75% of the full-time employees’ salaries.
  • Co-investment linked to private equity: equivalent to 50% of the increase in share capital from unrelated parties, universities or non-profit research centres or related enterprises. The increase in share capital needs to occur following approval by Malta Enterprise, and not later than twelve months from acceptance of the advance. Disbursements can occur in tranches, linked to milestones established in the initial business plan.
  • Support in relation to working capital: up to €200,000, increasing to up to €400,000 in the case of innovative companies.
  • Support for the procurement of tangible and intangible assets: Malta Enterprise may award up to 75% of the costs to procure; machinery, equipment  and amortizable, intangible assets. Intangible assets must not exceed 50% of the total investment and are defined as being limited to the procurement of; patents, licences, and know-how.

7. Support Linked to Crowdfunding

  • A repayable grant of up to 50% of a project or equity financing increase, that is also being funded through a successful crowdfunding campaign.

The grant may not exceed the amount requested through the campaign, and the beneficiary must notify that s/he has received assistance from ‘Malta Enterprise’. If the beneficiary raises more funds than those featured on the platform, the difference can be deducted from the repayable contribution.

Additional Information 

If you would like further information regarding the support measures for research and development and the opportunities available through the jurisdiction of Malta, please speak to Jonathan Vassallo: advice.malta@dixcart.com at the Dixcart office, in Malta or to your usual Dixcart contact.

St Kitts & Nevis – A Summary: Wealth Management and Citizenship by Investment

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 terms of 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, and allowing clients to organise their affairs in an efficient and confidential manner.

Some of the jurisdiction’s key benefits include:

  • Confidentiality – beneficial ownership information is confidential
  • Agility – a structure formed in another jurisdiction may easily redomicile to Nevis
  • Flexibility – with cutting edge foundation legislation, a multiform foundation can take or change its form from either a trust, a company, a partnership or a traditional foundation
  • Security – Trust Asset Protection Laws mean that any potential creditor must place a bond of EC$270,000 / US$100,000 before bringing any action or proceeding against trust property
  • Friendly tax environment – no income tax, capital gains tax, estate tax, inheritance tax or gift tax

Services Provided by Dixcart Management Nevis Limited

Dixcart Nevis provides a wealth of solutions and expertise with respect to succession planning and citizenship by investment. Our bespoke services include:

  • Formation of Asset Protection Trusts and Common Law Trusts, and the provision of Trustee services
  • Formation and management of Nevis Multiform Foundations
  • Nevis Company incorporation and registered office / registered agent services
  • Citizenship by Investment
  • Estate planning and family office services

Additional Information

If you require additional information regarding the jurisdiction of St Kitts & Nevis and the services offered, please speak to John Mellor or Beth Le Cheminant at the Dixcart office in Nevis: advice.nevis@dixcart.com.

Malta

Funding Available for IT and Fintech Business in Malta

Background

Companies based in Malta have access to national and EU funding.

Dixcart Malta can assist with applications to Malta Enterprise, the Government agency which offers support to companies at different stages of their lifecycle. Schemes are available depending on various criteria, including the nature of the project/operation.

Which Sectors are Eligible for Funding?

The main funding options are available for the following sectors: hi-tech, artificial intelligence, advanced manufacturing, life sciences, education and training, digital innovation and data science.

The hi-tech sector is defined to include: 

  • Data hosting services 
  • Payment gateway services
  • Cybersecurity 
  • Cloud-based applications 
  • Behaviour analytics 
  • Automated multilingual customer service development 
  • Big data and AI-driven financial analytics and insights 
  • Autonomous, decentralised and intelligent system design 
  • Digital games 
  • Fintech 
  • MedTech

How Are Funding Decisions Reached?

Each situation is assessed on its own merits with Malta Enterprise reviewing numerous criteria and reaching a final decision on a case by case basis.

AI Strategy

The national AI strategy of Malta sets out the long-term objective as being to transform Malta into a leading economy in the field of AI by 2030. This maps the path for Malta to gain a strategic competitive advantage in the global economy as a leader in the AI field and has been built on the following three strategic pillars: 

  • Investment, start-ups and innovation 
  • Public sector adoption 
  • Private sector adoption – three strategic enablers: education and workforce, ethical and legal, and ecosystem infrastructure.

New Niches 

Malta is becoming a home to technologies that will shape the future. Technologies such as: 

  • Distributed Ledger Technology (DLT) including blockchain 
  • MedTech including bioinformatics and medical imaging
  • Artificial Intelligence, mainly with a focus on machine learning, natural language processing and speech
  • Internet of Things and 5G
  • Biometrics 
  • Virtual Reality and Augmented Reality 

Malta as a Technology Test Bed

Due to its relatively small size and population, Malta is an ideal micro test bed to enable solutions and service providers to prove their concepts.

Malta incentivises companies to introduce innovative technologies and to help build a new infrastructural future. The Government of Malta continues to invest in bringing the latest technologies to Malta to ensure continuous connectivity.

Malta The Tech Hub in the Mediterranean 

Malta Enterprise is the Maltese Government’s economic development agency, responsible for attracting Foreign Direct Investment whilst also assisting businesses to set-up, grow and continue to expand.

This is achieved through various fiscal and financial incentives that are managed and administered by the agency.

The Advantages Offered by Maltese Companies

In addition, a number of benefits, including several tax efficiencies are available to international companies established in Malta and these are explained fully in the Dixcart Article: What Are the Advantages Available to Companies Established in Malta?

Malta’s Expat Population

Malta as a jurisdiction appreciates the positive contribution being made by expats in helping to achieve its ambitious AI and technology objectives. 

25% of Malta’s population are expats living and working in Malta:

  • Expats are active across all economic sectors
  • Qualified non-residents are employed in roles that cannot be filled by the local labour market 
  • Through the newly launched ‘Qualifying Employment in Innovation and Creativity Tax Programme’, qualified non-residents who earn an annual minimum employment income of €52,000 and pay income tax in Malta, are eligible to a flat tax rate of 15% for a maximum period of three years.

 Additional Information

If you require further information regarding setting up a company in Malta and would benefit from a one-stop-shop of corporate services, including support with funding applications, please speak to Jonathan Vassallo at the Dixcart office in Malta: advice.malta@dixcart.com.

Guernsey Foundations – Key Features and a Unique Point of Difference

The Key Difference Between a Foundation and a Trust

The main difference between a Foundation and a Trust is that a Foundation is a legal entity and owns its assets in its own right as opposed to a Trust, where the assets are legally owned by the Trustees, who hold them for the benefit of the Beneficiaries under the terms of a Trust Deed.

A Foundation creates a separate legal entity with its own legal personality, distinct from the Founder(s), Council or Beneficiaries. A Foundation has a number of characteristics that are similar to those of a company having a separate legal personality and a management board known as a Council. However, importantly, it is entirely independent and has no shares and no members, nor any concept of share capital.

Beneficiaries and a Unique Feature of a Guernsey Foundation

A Beneficiary of a Foundation is anyone who is entitled to benefit from that Foundation. Beneficiaries must be identified by name or by their relationship to another person.

  • A unique aspect of Guernsey Foundation Law is that it provides for both enfranchised and disenfranchised Beneficiaries.

An enfranchised Beneficiary is; entitled to a copy of the Constitution, the records and accounts of the Foundation, and can apply to the Court to change the Purposes, or to revoke or dissolve a Foundation.

Subject to the terms of the Constitution, disenfranchised Beneficiaries are not entitled to any information. This is a novel feature of Guernsey Foundations and is not found in any other jurisdiction.

The use of disenfranchised Beneficiaries may be attractive for family arrangements where there is a desire to protect the younger generation from the potentially corrosive effects of the knowledge of substantial wealth. Once the reason for a disenfranchised Beneficiary’s classification, such as age, disappears, they may then become an enfranchised Beneficiary.

Registration

A Foundation comes into being on registration of its statutory documents with the Registrar.

In order to register a Foundation the following documents and information need to be provided:

  • The Charter
  • A declaration signed by the Founder (or his agent)
  • The names and addresses of the proposed Councillors and their consents to act
  • The name and address of the proposed Guardian (if any), and his consent to act
  • The address and telephone number of the registered office of the Foundation in Guernsey
  • The registration fee

Provided that the name is not unlawful or already taken and the Purpose is not contrary to the Law of Guernsey, the Foundation will then be registered, and given a number and a Certificate of Registration.

At this point the Foundation becomes a legal entity separate from its Founder, the foundation officials (the Councillors and any Guardian), or Beneficiaries. The Registrar has discretion regarding whether or not a Foundation will be subject to an annual renewal process and, like a company, a Foundation can have perpetual existence.

Key Features of a Guernsey Foundation

  • The Council

A Guernsey Foundation is managed by a Council comprised of at least two Councillors, except where the constitution permits a single Councillor. If neither the Councillors nor the Guardian is a Guernsey licensed fiduciary, then the Foundation will require a Guernsey resident agent to hold the Foundation’s records within the jurisdiction.

The Council of a Foundation owes its duties to the Foundation itself. The Council does not owe any duties to the Beneficiaries of the Foundation.

Councillors have a duty to act in good faith. They also have a duty not to profit, other than as permitted by the Constitution, to preserve the property of the Foundation, to give information to the Guardian and enfranchised Beneficiaries, to maintain accounting records and to be impartial.

  • The Constitution: Charter and Rules

The core document by which a Foundation is governed is its Constitution. The Constitution comprises two parts: the Charter and the Rules.

The Charter must contain the name and purpose of the Foundation, a description of its initial capital or endowment, and whether the Foundation has a limited duration in which case the duration must be stated. It may also contain anything else that the Founder wishes to include.

The Rules set out the operating provisions of the Foundation, detail the functions of the Councillors, deal with the procedures for the appointment, retirement and remuneration of Councillors and any Guardian, and identify the default Beneficiary. The Rules may also specify other matters, such as how the assets of the Foundation should be applied and how Beneficiaries may be added or excluded. They may also impose obligations on a Beneficiary or contain protective measures to terminate a Beneficiaries’ interest, for example, if he becomes insolvent.

  • The Founder

The Founder of a Guernsey Foundation determines; the Purpose of the Foundation, decides the Foundation’s Constitution, and provides it with initial capital. The Founder, or his agent, must also detail his name as the Founder, to the Constitution of the Foundation, by signing it.

It is also the Founder’s role to appoint the initial Councillors and any Guardian and to have the Foundation registered. The Founder may also be a Councillor or a Guardian, but not both simultaneously, in addition to being a Beneficiary.

Reservation of Powers by the Founder

The Founder may reserve certain limited powers to himself, such as the power of amendment or revocation of the Constitution, and/or of the Purposes of the Foundation.

Such powers can be reserved only for the duration of the Founder’s life, if he is a natural person, or for 50 years from the date of establishment, in the case of a legal person. After which point the reserved powers will automatically lapse. This does not preclude the Council from delegating certain functions to the Founder.

  • Guardian

In situations where there are disenfranchised Beneficiaries or where there is a stated Purpose, but no individual Beneficiaries, a Guernsey Foundation must have a Guardian.

The Guardian’s function is to enforce the Purposes of the Foundation on behalf of disenfranchised Beneficiaries, or where there are no Beneficiaries, in substitution for them. Foundations that have Beneficiaries, but no disenfranchised Beneficiaries are not required to have a Guardian.

The Founder may act as Guardian. The Guardian will be named in the Register and may not serve on the Council at the same time. He must maintain accurate accounts and records during his guardianship.

Duties Owed

A Guardian also owes fiduciary duties to the Founder and the Beneficiaries to enforce the Constitution.

Additional Information

If you require any additional information regarding Guernsey Foundations, their benefits and how they can be used, please contact John Nelson at the Dixcart office in Guernsey: advice.guernsey@dixcart.com

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

Malta-nomad-residence-permit

Malta Residence and Visa Programme: Key Defining Features

The New Permanent Residence Programme came into effect at the end of March 2021.

What are the Key Defining Features of the Malta Permanent Residence Programme?

The Malta Permanent Residence Programme (MPRP) is open to all third country, non-EEA, and non-Swiss nationals, with sufficient financial resources.  

Once the application process has been successfully completed by ‘Residency Malta Agency’, applicants receive permanent residency immediately and an ‘eResidence’ card, that entitles them to live in Malta and to travel visa free throughout the Schengen Member States.

Features that set the MPRP apart from other programmes, include:

  • There is no need to learn Maltese as there is no language test to obtain Permanent Residence.
  • English is an official language in Malta so all documents and government interactions will be in English.
  • Permanent Residence is granted on successful completion of the application
  • There are no minimum days to be spent in Malta.
  • Children, regardless of age, can be included in the application, as long as they are unmarried and principally dependant on the main applicant.
  • Dependant parents and grandparents may also be included in the application, effectively allowing 4 generations to be included in one application.
  • Children born or adopted by the main applicant after the application approval date can also be included.

Requirements

An individual will need to make an investment consisting of the following:

  • Physical Address in Malta
    • Purchase a property with a minimum value of €350,000, reduced to €300,000 if the property is situated in the South of Malta or Gozo, or
    • Rent a property, with a minimum rental cost of €12,000 per annum, reduced to €10,000 per annum if the property is situated in the neighbouring island Gozo or in the South of Malta.

AND

  • Pay the non-refundable administration fee of €40,000

AND

  • Make one-off Government contributions, as follows:
    • €58,000 – if the applicant rents a property, or
    • €28,000 – if the applicant buys a qualifying property and
    • An extra €7,500 per additional adult dependant (where applicable). This applies whether the applicant is buying or renting a property.

AND

  • Donate a minimum amount of €2,000 to an NGO.

Payment timeframe:

  • Initial Administration fee of €10,000
    • Due within one month of the application submission
    • Letter of approval, remainder of the Administration fee of €30,000
      • Due within two months of the application submission
    • 8 months to provide all due diligence and the payment of the Government contribution of either €28,000 or €58,000, to be paid.

The main applicant should have at least €500,000 of net assets in order to qualify for the programme, and €150,000 of the €500,000 must consist of financial assets. The financial assets, however, only have to be maintained for the first 5 years. The capital requirement of €500,000 will remain in force for as long as the individual wishes to remain on the programme.

Finally, health insurance only needs to cover Malta, not all EU countries. This may result in an annual reduction in the insurance premium.

How Dixcart Can Help?

Individuals interested in applying for the MPRP programme must do so through a registered approved agent. Dixcart is an approved agent, and offers a bespoke service to guide clients, every step of the way, through the MPRP process.

Additional Information

If you would like further information regarding MRVP in Malta, please speak to Jonathan Vassallo: advice.malta@dixcart.com, at the Dixcart office in Malta or to your usual Dixcart contact.

Dixcart Management Malta Limited Licence Number: AKM-DIXC-22

What Will Portugal’s Golden Visa Programme Look Like in 2022?

From 1 January 2022, new changes came into force for the Portuguese Golden Visa programme. The changes include limitations on where investment properties can be located and an increased investment threshold for some investment routs. 

Changes Regarding Real Estate

Although residential properties located in Lisbon, Oporto and the Algarve will be excluded from the programme, areas such as Alcácer do Sal, Grândola, Santiago do Cacém, the Douro Valley, Aljezur, Peneda-Gerês, and Madeira, still may offer attractive investment potential, and will be some of the key areas that are likely to see growth, especially early 2022. However, the reality is that they are and will always be less liquid than ‘prime’ locations in Lisbon, Porto, or Algarve. It is something investors will need to consider.

That said, the real estate route is divided into the €500,000 minimum investment that requires the acquisition of a property and the €350,000 route which requires the acquisition of a property that is at least 30 years old or located in rehabilitation area and will also have to be refurbished.

If the investment into residential properties is limited to low density areas such as the ones indicated above, the minimum investment has been reduced as of 1 January 2022 by 20%, meaning that the minimum investment of €500,000 reduces to €400,000 and the €350,000 reduces to €280,000. Potential investors are advised to consider these areas carefully and not rush their investment decision. Should the Golden Visa program be changed further down the road, or removed completely, would these areas be able to sustain these prices?

Madeira and the Azores are not considered low density areas, as market dynamics are already at play due to limited supply and increased demand. They are more mature markets which move well without the stimulus of a Golden Visa program. This means the minimum investment amounts remain €500,000 and €350,000.

The restrictions are not applicable to commercial or services properties, such as hotels, where clients can still acquire properties in Lisbon and Oporto. Perhaps this is a more sensible option for those seeking Golden Visa real estate investments where the investment prospect alone is attractive? The investment should always be self-reliant and independent, without the need to include residency rights in order to make it more attractive. 

With the above in mind, it is understandable why the growing trend of investing into Golden Visa eligible funds is likely to accelerate. Such funds are not only regulated but offer more diversification and generally better returns than a direct real estate purchase. 

Changes to Other Investment Routes

As of 1st January 2022, investment in any one of the non-real estate routes, will be required at the increased levels, as detailed below:

  • Investment by capital transfer will increase from €1,000,000 to €1,500,000; or
  • Investment by capital transfer in research activities, will increase from €350,000 to €500,000; or
  • Investment by capital transfer for the acquisition of units of investment funds or venture capital funds, designated for the capitalisation of companies, will increase from €350,000 to €500,000; or
  • Investment by capital transfer through the establishment of a commercial company with a head office in Portugal, and the creation of a minimum of five permanent jobs, will increase from €350,000, to €500,000.

Summary

If would like additional information on applying for a Portuguese Golden Visa, please speak to Catarina Sardinha in our office in Portugal: advice.portugal@dixcart.com. The renewal of Golden Visa permits, granted prior to 1st January 2022, will not be affected by the changes detailed above.

Multi-Jurisdictional

The Option of a Second Passport – St Kitts & Nevis Citizenship by Investment

Background

Individuals and families are becoming increasingly mobile and the ability to hold a second passport, such as a St Kitts and Nevis passport, is becoming more relevant. The Caribbean is an attractive destination for a number of reasons, including the relaxing lifestyle, beautiful scenery and the climate.

Why do Families and Individuals Require a Second Passport?

There are a variety of reasons why wealthy individuals wish to acquire a second or alternative nationality:

  • To offer insurance against political, economic or fiscal change in the individual’s country of origin.
  • To make international travel easier.
  • To allow the passport holder to avoid discrimination and avoid the risk of potentially hostile treatment by Government officials, kidnappers and hostage takers.
  • Tax structuring of personal tax affairs (more information can be provided on request).
  • Citizens of the United States of America and certain other countries are subject to tax on their worldwide income, irrespective of their country of residence. They are denied the residence-linked tax planning opportunities that are available to others. It is possible for such individuals to gain fiscal advantages by acquiring a new citizenship and renouncing their original citizenship.

There are a number of different options for citizenship within the Caribbean. 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.

The St Kitts & Nevis Citizenship by Investment scheme enables citizenship to be obtained by individuals through 3 alternative investment programmes. An inidvidual can receive a St Kitts & Nevis passport in 3 months or less from the application date.

St Kitts and Nevis Passport – what does this offer?

  • A single application can include children up to a maximum age of 30 and parents with a minimum age of 55 and unmarried, dependent siblings up to the age of 30.
  • There is a fast track process which enables applicants receipt of a St Kitts & Nevis passport in 45 days.
  • Passport holders enjoy full Schengen privileges and can travel to approximately 156 countries worldwide, either on a visa free, or visa on entry basis. A visa is not required to visit the UK.

In addition, 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 and work in other Caribbean Community countries (Caricom) if they wish to do so. There are 15 Caricom member states.

What are the St Kitts & Nevis Investment Routes?

There are three investment routes available:

1. Sustainable Growth Fund (SGF) Contribution

  • A single applicant can make a contribution of US$150,000 to the Sustainable Growth Fund (SGF).
  • The addition of a sibling under the Sustainable Growth Fund, will be US$20,000.
  • For additional dependants (children or parents), the contribution requirement is US$10,000 per dependant.

2. Real Estate Investment

There are two options available for applicants seeking to qualify for citizenship by investing in real estate: by investing in a pre-approved real estate development or, for a limited time only, through the purchase of qualifying private residential property.

1. Approved Property Development

  • Investment of a minimum US$400,000 in an approved property development. The property must be held for a minimum of 5 years after the citizenship has been granted.

A registration fee is payable by the applicant and additional fees are required for the spouse, children under the age of 18 and additional family members over the age of 18. The addition of a sibling is US$40,000.

If this route is selected, the Dixcart office in Nevis can help source management services for the property, which can be sold on after 5 years.

2. Luxury Real Estate

  • Investment of a minimum US$200,000 in new luxury real estate. The property must be held for a minimum of 7 years after the citizenship has been granted.

A registration fee is payable by the applicant and additional fees are required for the spouse, children under the age of 18 and any additional family members over the age of 18. The addition of a sibling is US$40,000.

3. Alternative Investment Option (AIO)

Applicants have the option to invest in an alternative project that has been approved by the St Kitts & Nevis Government. Alternative Investment projects can be Government or privately owned.

  • An investment of US$175,000 for up to a family of four, in a Public Good Project Developer (PGPD) project which is fully funded by the PGPD.  All other fees will apply as per the real estate option.
  • An investment of US$200,000 for up to a family of four in a Private Enterprise Developer (PED), where the built or funded asset is privately owned.  Standard real estate government fees also apply.

Potential projects should be identified by the Government or can be suggested by private individuals with access to financing who approach the Government with potential projects that are not already on the Government’s infrastructure list. Once the asset has been completed and operated for a reasonable period of time (that allows for a reasonable return on investment) must be turned over to the Government in a maintained condition consistent with prudent ownership.

Dependants

  • Unmarried dependant children who are older than 18 but younger than 30 may be included in the application.
  • Dependant parents aged 55 or above may also be included. Citizenship can be passed on to future generations by descent.
  • Siblings may be added to the application if he/she is the brother or sister of either the main applicant or his/her spouse, is unmarried and childless, under the age of 30, and dependent on the applicant for financial support.

Fast Tracking

The processing time for any one of the three routes above, to gain St Kitts & Nevis Citizenship is approximately 3 months. For an additional US$46,000, however, the application can be fast-tracked and the passport received in approximately 45 days.

Sponsorship

There is the ability to sponsor applicants. A direct relative can sponsor another direct relative and a common law partner can sponsor another common law partner. Further information can be provided on request.

Additional Information

Dixcart is a licensed Service Provider for the St Kitts & Nevis Citizenship by Investment programme and can provide comprehensive details of the alternative application routes available, any additional fees that might be required, and assist with the coordination of applications.

If you would like additional information regarding the St Kitts & Nevis Economic Citizenship Programme please contact John Mellor at our office in Nevis: advice.nevis@dixcart.com or your usual Dixcart contact.

Guernsey

Significant Tax Advantages Available to Individuals Moving to Guernsey

Background 

Guernsey is one of the Channel Islands and is situated in the English Channel, close to the French coast of Normandy.

Whilst retaining very close links to Britain, Guernsey is independent from the UK and has its own democratically elected parliament which controls the island’s laws, budget and levels of taxation. 

What Tax Advantages are Available to Individuals Moving to Guernsey?

  1. Capped Rate of Income Tax

Guernsey residents pay 20% income tax on Guernsey source income (above a tax-free allowance of £12,175). Individuals can cap the liability on non-Guernsey source income at a maximum £130,000 per annum OR cap the liability on worldwide income at a maximum £260,000 per annum.

  1. Additional Tax Cap Available for ‘Resident only’ Individuals

‘Resident only individuals’ (generally, defined as individuals spending more than 91 days per year in Guernsey and 91 days or more in another jurisdiction during the calendar year):

  • Can elect to be taxed on their Guernsey source income only, by paying a standard annual charge of £40,000. Non-Guernsey source income will then be ignored, whether it is remitted to Guernsey or not.
  1. Further Potential to Cap Guernsey Income Tax Liability

New residents to Guernsey, who purchase an ‘open market’ property, can enjoy a tax cap of £50,000 per annum on Guernsey source income in the year of arrival and subsequent three years, as long as the amount of Document Duty paid, in relation to the house purchase, is at least £50,000.

Eligibility to Move to Guernsey

British citizens, EEA nationals and Swiss nationals are eligible to move to Guernsey. Nationals of other countries require permission or “leave to remain” in Guernsey. Visa and immigration rules are comparable to the UK.

Individuals who do not have an automatic right to live in Guernsey but want to move there, must fall within one of the following categories:

  • Spouse/partner of a British Citizen, EEA national or settled person.
  • Investor (minimum £750,000 invested in Guernsey) (and a minimum £1million under their control in Guernsey).
  • Person intending to set themselves up in business. A minimum £200,000 investment into a new or existing Guernsey company which the applicant will manage themselves.
  • Writer, artist or composer.

Any other individual wishing to move to the Bailiwick of Guernsey must obtain an entry clearance (visa) prior to his/her arrival. The entry clearance must be applied for through the British Consular representative in the individual’s country of residence.

Other Reasons to Want to Move to Guernsey

There is no inheritance tax, no capital gains tax, no value added tax and no withholding tax. Guernsey is also a leading international financial centre and the general rate of corporation tax is zero.

Other Positive Factors – the Lifestyle

  • The island of Guernsey is 79 square kilometres, with 50 kilometres of stunning coastline, including 27 beaches. It has an approximate population of 65,000 and is well known for its temperate climate and relaxed, high quality standard of living. It combines many of the reassuring elements of UK culture with the benefits of living abroad.
  • The island is only forty-five minutes from London by air and has good transport links to seven key airports which enables easy access to Europe and international connections.
  • Guernsey is ideal for families, with its beautiful beaches, emphasis on sport, low crime rate and a very good education system.

Further Information

For further information about moving to Guernsey, please contact the Dixcart office in Guernsey: advice.guernsey@dixcart.com.

 

 

 

 

 

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

 

Guernsey registered company number: 6512.

Moving to Guernsey – The Benefits and Tax Efficiencies

Background

The island of Guernsey is the second largest of the Channel Islands, which are situated in the English Channel close to the French coast of Normandy. The Bailiwick of Guernsey comprises three separate jurisdictions: Guernsey, Alderney and Sark. Guernsey is the largest and most populated island in the Bailiwick. Guernsey combines many of the reassuring elements of UK culture with the benefits of living abroad.

Guernsey is independent from the UK and has its own democratically elected parliament which controls the island’s laws, budget and levels of taxation. Legislative and fiscal independence mean that the island can respond quickly to the needs of business. In addition, the continuity achieved through the democratically elected parliament, without political parties, helps deliver political and economic stability. 

Guernsey – a Tax Efficient Jurisdiction

Guernsey is a leading international financial centre with a good reputation and excellent standards:

  • The general rate of tax payable by Guernsey companies is zero*.
  • There is no capital gains tax, inheritance tax, value added tax or withholding tax.
  • Income tax is generally a flat rate of 20%.

*Generally, the rate of corporation tax payable by a Guernsey company is 0%.

There are certain limited exceptions when a 10% or 20% rate of tax apply. Please contact the Dixcart office in Guernsey, for further details: advice.guernsey@dixcart.com.

Tax Residence and a Significant Tax Advantage 

An individual who is resident, but not solely or principally resident in Guernsey, can elect to be taxed on Guernsey source income only, subject to a minimum charge of £40,000. In this instance any additional income earned outside Guernsey will not be taxed in Guernsey.

Alternatively, an individual who is resident, but not solely or principally resident in Guernsey, can elect to be taxed on his or her worldwide income.

Special provisions are available for those who are resident in Guernsey solely for employment purposes.

For Guernsey income tax purposes an individual is ‘resident’, ‘solely resident’ or ‘principally resident’ in Guernsey. The definitions relate primarily to the number of days spent in Guernsey during a tax year and, in many cases, also relate to the days spent in Guernsey in several preceding years.

Precise definitions and current tax rates and allowances are available on request. 

Attractive Tax Cap for Individuals 

Guernsey has its own system of taxation for residents. Individuals have a tax-free allowance of £12,175. Income tax is levied on income in excess of this amount at a rate of 20%, with generous allowances.

‘Principally resident’ and ‘Solely resident’ individuals are liable to Guernsey income tax on their worldwide income.

‘Resident only’ individuals are taxed on their worldwide income or they can elect to be taxed on their Guernsey source income only and pay a standard annual charge of £40,000.

Guernsey residents falling under one of the three residence categories above can pay 20% tax on Guernsey source income and cap the liability on non-Guernsey source income at a maximum of £130,000 OR cap the liability on worldwide income at a maximum £260,000.

New residents to Guernsey, who purchase an ‘open market’ property, can enjoy a tax cap of £50,000 per annum on Guernsey source income in the year of arrival and subsequent three years, as long as the amount of Document Duty paid, in relation to the house purchase, is at least £50,000.

The island offers attractive tax caps on the amount of income tax payable by residents and has:

  • No capital gains taxes
  • No wealth taxes
  • No inheritance, estate or gift taxes
  • No VAT or sales taxes

Immigration to Guernsey

The following individuals do not generally need permission from the Guernsey Border Agency to move to the Bailiwick of Guernsey:

  • British citizens.
  • Other nationals of Member States of the European Economic Area and Switzerland.
  • Other nationals who have permanent settlement (such as indefinite leave to enter or remain in the Bailiwick of Guernsey, United Kingdom, Bailiwick of Jersey or the Isle of Man) within the terms of the Immigration Act 1971.

An individual who does not have an automatic right to live in Guernsey must fall within one of the categories below:

  • Spouse/partner of a British citizen, EEA national or settled person.
  • Investor
  • Person intending to set themselves up in business.
  • Writer, artist or composer.

Any other individual wishing to move to the Bailiwick of Guernsey must obtain an entry clearance (visa) prior to his/her arrival.  The entry clearance must be applied for through the British Consular representative in the individual’s country of residence. The initial process generally starts with an online application via the British Home Office website.

Property in Guernsey

Guernsey operates a two tier property market. Individuals who are not from Guernsey can only live in open market property (unless they have a work licence), which is generally more expensive than local market property.

What Other Advantages Does Guernsey Offer?

  • Location

The island is situated approximately 70 miles from the south coast of England and a short distance from the north-west coast of France. It has 24 square miles of beautiful countryside, a stunning coastline and a mild climate, courtesy of the Gulf Stream.

  • Economy

Guernsey has a stable and diverse economy:

  • Low tax regime which is compliant with international standards
  • AA+ credit rating
  • World class professional services with a global network
  • A pro-business attitude with easy access to government decision makers
  • Frequent connections to London airports
  • Part of the sterling zone
  • Mature legal system 
  • Quality of Life

Guernsey is renowned for its relaxed, high quality standard of living and a favourable work-life balance. The following benefits are available:

  • A wide range of attractive residential properties to choose from
  • A safe and stable place to live
  • High-powered “city” jobs without the downsides of commuting or inner city living
  • First rate education system and quality health care
  • Peter Port, one of Europe’s most attractive harbour towns
  • Breath-taking beaches, stunning cliff coastline and idyllic countryside
  • High quality restaurants
  • The natural resources of the island enable a variety of recreational and sporting activities
  • A strong sense of community with a charitable spirit
  • Transport Links

The island is only forty-five minutes from London by air and has excellent transport links to the seven key UK airports, which enables easy access to European and international connections. 

What Does Sark Offer?

In addition to Guernsey, the island of Sark falls within the Bailiwick of Guernsey. Sark is a small island (2.10 square miles) with a population of approximately 600 and has no motorised transport.

Sark offers a very relaxed lifestyle and a simple and low tax system. Personal tax per adult resident, for example, is capped at £9,000.

There are laws which restrict the occupation of certain dwellings. 

Further Information

For further information on relocation to Guernsey please contact the Dixcart office in  Guernsey: advice.guernsey@dixcart.com. Alternatively, please speak to your usual Dixcart contact.

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

 

Guernsey registered company number: 6512.