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The Swiss Social Security System Explained

Posted on | by Hristina Georgieva

Background

Swiss companies are very popular and it is important to understand the Swiss Social Security System when considering the establishment of a company in this attractive jurisdiction.

The Swiss social security system is unique and relatively complex. The assistance of an expert such as Dixcart is recommended, to guide you through the process and to ensure that you are fulfilling all of your obligations.

Attractive Protections for Employees

Switzerland has a close-knit network of different types of ‘social’ insurance, which offer individuals living and working in the country, and their dependants, a broad protection against financial risks, which could not be covered without this insurance.

Who is Subject to the Swiss Social Security System?

Anyone working or living in Switzerland is subject to the Swiss Social Security System.

The Five Areas

The Swiss social security system is divided into five areas:

  1. Old-age, survivors and invalidity (the three-pillar system).
  2. Sickness and accidents.
  3. Income compensation allowances, in the event of compulsory service, maternity or paternity leave.
  4. Unemployment benefits.
  5. Family allowances.
  1. Old Age, Survivors and Invalidity

The Swiss social security system covers the risks of old age, death and disability and is built on the three pillars of; old-age, survivors and invalidity

The first Pillar (Pillar 1) is a mandatory state pension plan for everyone. It aims to cover basic living costs.

The second Pillar (Pillar 2) is compulsory for salaried persons. It feeds into “Pillar 1” to maintain the previous standard of living for individuals, to provide them with an income equal to approximately 60% of that earned pre-retirement. The law sets the minimum statutory benefits. Companies and other institutions may establish benefits exceeding this minimum.

“Pillar 1” and “Pillar 2” are compulsory and dealt with by the employer, “Pillar 3” is a voluntary individual process organised directly with an insurance company or bank. This scheme benefits from tax incentives.

  1. Health and Accidents

Swiss health insurance is mandatory for everyone living in Switzerland for longer than three months. The insurance premiums are considered a private cost and are rarely covered by the employer.

Accident insurance is compulsory for everyone with gainful employment in Switzerland. It covers the financial consequences of accidents at work and outside of work.

In other cases, the risk is covered under private health insurance.

  1. Compulsory Military Service, Maternity and Paternity Leave

Anyone living or working in Switzerland is insured. It partially covers loss of earnings arising from the performance of military or civil protection services, or during maternity and paternity leave.

  1. Unemployment Benefits

In principle, anyone who has been gainfully employed is covered by the unemployment insurance scheme. Self-employed individuals are not covered.

  1. Family Allowances

The family allowance is a provision to compensate for the costs incurred by raising a family.

Contributions Payment.

The benefits paid out by the different types of social security are in principle financed by contributions levied on income.

Employees and employers make contributions in equal parts. The employer’s contribution should at least equal the employee’s contribution. The employer pays the total amount to the insurance company and deducts the employee’s contribution from their salary.

The following are exceptions to the above:

  • Family Allowances, which are almost exclusively financed by employers.
  • Private Health Insurance, which is paid by each individual.
  • “Pillar 3” which is voluntary and supported by each insurer.

Please note that self-employed individuals make full contributions themselves to Swiss Social Security.

Switzerland and International Social Security

Switzerland has concluded bilateral and multilateral social security agreements with EU and EFTA member states, as well as with a number of other countries. These social security agreements determine the rights and obligations of citizens in relation to the social security system of another signatory state. The aim is to ensure the equal treatment of citizens from both Switzerland and the other state.

Switzerland is chosen by many international companies as a base for their European or global cross-border business activities, largely because of its advantageous investment climate. Swiss employment law is known as being more liberal than other jurisdictions. While the fundamental principle of contractual freedom is predominant, it is important to understand the statutory minimal standard and the social protection mechanisms provided by Swiss law.

How Can We Help?

The Dixcart office in Switzerland can assist you with all of the following:

  1. Preparing and supporting the Swiss Social Security process.
  2. Coordinating the contribution payment via the payroll.
  3. Relevant administrative work.
  4. Clarifying social security obligations, particularly in an international context.

Please contact Christine Breitler, who will be delighted to put you in contact with the appropriate expert in the Dixcart Swiss office: advice.switzerland@dixcart.com

Malta-nomad-residence-permit

The Malta Nomad Residence Permit – Legally Reside in Malta Whilst Maintaining a Job in Another Country

Posted on | by Charlotte Clabon

Introduction to the Malta Nomad Residence Permit

The new Malta Nomad Residence Permit, enables individuals to maintain their current job in another country, whilst they legally reside in Malta.

Malta Nomad Residence Permit – Eligibility for Third Country Individuals

To be eligible for this Permit, an individual must be able to work remotely and independently of his/her location, and needs to use telecommunication technologies.

Malta has already welcomed a number of EU digital nomads. This community of ‘nomads’, enjoys Malta’s climate and lifestyle, and have already begun to interact with people with similar ideas, to add value to the community.

The Nomad Residence Permit in Malta opens up this opportunity to third country citizens, who would usually need a visa to travel to Malta. This permit lasts for one year and can be renewed at the discretion of Residency Malta, as long as the individual still meets the criteria.

If the third-country applicant for the digital nomad permit wants to stay less than a year in Malta, he/she will receive a National Visa for the duration of the stay, rather than a residence card.

Criteria

Applicants for the Nomad Residence Permit must:

  1. Prove they can work remotely using telecommunication technologies.
  2. Be third country nationals.
  3. Prove they work in any of the following categories:
  4. Work for an employer registered in a foreign country and have a contract for this work, or
  5. Perform business activities for a company registered in a foreign country, and be a partner/shareholder of said company, or
  6. Offer freelance or consulting services, mainly to customers whose permanent establishment is in a foreign country, and have supporting contracts to verify this.
  7. Earn a monthly income of €2,700 gross of tax. If there are additional family members, they will each have to satisfy the income requirements as specified by the Agency Policy.

In addition to the above, applicants must also:

  1. Possess a valid travel document.
  2. Have health insurance, which covers all risks in Malta.
  3. Have a valid contract of property rental or property purchase.
  4. Pass a background verification check.

Application Process

  • The applicant must complete all of the documents required by the Residency Malta Agency.
  • After submitting all of the documents digitally, the individual will receive instructions for payment of a €300 administrative fee, for each applicant.
  • The application will then be reviewed by the Agency and other Maltese Authorities, who will contact the individual by email, when the process is complete.
  • Finally, the applicant will need to submit biometric data for the Nomad Residence Permit or National Visa, and the process will then be concluded.

Additional Information

If you require any further information regarding the Nomad Residence Permit, please contact Jonathan Vassallo or Henno Kotze at the Dixcart office in Malta: advice.malta@dixcart.com, or speak to your usual Dixcart contact.

Dixcart Management Malta Limited Licence Number: AKM-DIXC-23

St Kitts & Nevis International Business Corporations: Recent Changes And Key Characteristics

Posted on | by Charlotte Clabon

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 John Mellor at the Dixcart office in Nevis: advice.nevis@dixcart.com.

Formation Of A Swiss Company and The Ability To Become Resident in Switzerland

Posted on | by Charlotte Clabon

Background

Switzerland is an attractive jurisdiction for the location of a company for several reasons, as detailed in the Dixcart Swiss Company Jurisdiction Note.

Forming or Investing in a Swiss Company and Becoming a Director or an Employee of the Company

The establishment of a Swiss company is also one of the routes to be able to move to Switzerland.

EU/EFTA and non-EU/EFTA nationals can form a Swiss company, be employed by it and reside in Switzerland.

Any foreign national can form a company and therefore potentially create jobs for Swiss nationals. The owner of the company is eligible for a residence permit in Switzerland, as long as he/she is employed by the company in a senior capacity.

What are the Criteria?

In principal, non-EU/EFTA nationals need to form a company which must generate an annual minimum turnover of CHF 1 million, and create new jobs exploiting new technologies and/or the development of the region and contribute to the economic development of the country.

The company must generate a business plan detailing how the amount to be invested will generate a turnover of CHF 1million or more per annum, in the ‘near’ future. The business plan needs to show that the company will achieve this turnover in a specified number of months, not necessarily in the first year, particularly if the company is a start-up.

The types of economic development objectives for the company, which are regarded positively in Switzerland, include: opening up new markets, securing export sales, establishing economically significant links abroad, and the creation of new tax revenue. Precise requirements vary by canton.

Investment in a Swiss Company

Alternatively, EU and non-EU/EFTA applicants can choose to invest in a company which is struggling to expand, as it lacks the necessary funding.

This new funding should then enable the company to create jobs and assist the Swiss economy to expand. The investment must add economic value to a particular Swiss region.

Non-EU/EFTA Nationals

A higher level of due diligence criteria must be met by non-EU/EFTA nationals, in comparison to EU/EFTA nationals, and the business proposition, will also need to offer greater potential.

Taxation

Swiss companies can enjoy a zero-tax rate for capital gains and dividend income, depending on the circumstances.

Trading companies are taxed as follows:

  • The effective cantonal and federal corporate income tax rate (CIT) is between 12% and 14% in most cantons. The Geneva corporate tax rate is 13.99%.

Swiss Holding Companies benefit from a participation exemption and do not pay tax on profits or capital gains arising from qualifying participations. This means that a pure Holding Company is exempt from Swiss tax.

Withholding Tax (WHT)

  • There is no WHT on dividend distributions to shareholders based in Switzerland and/or in the EU (due to the EU Parent/Subsidiary Directive).
  • If shareholders are domiciled outside Switzerland and outside of the EU, and a double tax treaty applies, the final taxation on distributions is generally between 5% and 15%.

Double Tax Treaties

Switzerland has an extensive double tax treaty network, with access to tax treaties with over 100 countries.

Additional Information

If you require additional information relating to Swiss companies and the advantages they can offer, please speak to Christine Breitler at the Dixcart office in Switzerland: advice.switzerland@dixcart.com.

Swiss companies

Swiss Corporations: Stability In A Volatile World

Posted on | by Charlotte Clabon

Recent events around the world, including the covid pandemic and major wars, mean that stability, security and reputational issues have become even more important. This applies to corporate structures as well as to many other areas of international life.

Swiss companies offer stability, as well as a number of potential tax efficiencies.

Advantages

Switzerland offers a number of advantages as a location for international companies:

  • Located in the centre of Europe.
  • Economic and political stability.
  • High regard for personal privacy and confidentiality.
  • An exceptionally ‘innovative’ and ‘competitive’ country, with numerous strong industries.
  • A well respected jurisdiction with an excellent reputation.
  • A high quality and multilingual local workforce.
  • Low rates of corporate tax for Swiss companies.
  • Premier destination for international investment and asset protection.
  • Major commodity trading centre in the world.
  • Hub for HNWIs, international families and a wide variety of professionals including: lawyers, family offices, bankers, accountants, insurance companies.

A Favourable Tax Environment for Companies and Foreign Investors

The Swiss tax regime for companies is attractive as summarised below:

  • Swiss trading companies are taxed at between 12% and 14%.
  • NO corporate tax on dividends received from qualified participations and no capital gains.
  • NO tax on dividend distributions to shareholders based in Switzerland and/or a country in the EU.

Swiss Company Taxation

The Swiss federal tax rate is consistent across Switzerland, but corporate tax rates (federal tax, plus cantonal tax) vary across different Swiss cantons, depending on the specific approved cantonal tax rate.

Since January 2020, the corporate tax rate (combined federal and cantonal tax) for trading companies in Geneva, has been 13.99%.

Swiss Holding Companies benefit from a participation exemption and do not pay income tax on profits or capital gains arising from qualifying participations. This means that a pure Holding Company is exempt from Swiss tax.

Swiss Withholding Tax (WHT)

There is no WHT on dividend distributions to shareholders based in Switzerland and/or in the EU (EU Parent/Subsidiary Directive). 

Switzerland is not in the EU, but is in ‘Schengen’.

Double Tax Treaties

Switzerland has an extensive double tax treaty network, with access to tax treaties with over 100 countries.

If shareholders are domiciled outside Switzerland and outside the EU, and a double tax treaty applies, the final taxation on distributions will generally be between 5% and 15%.

Patent Box

Net profit from domestic and foreign patents are taxed separately with a maximum reduction of 90% (precise rate depending on the specific canton). This Patent Box Regime meets the OECD2 standard.

Before the Patent Box is applied for the first time, the R&D expenditures, that are to enjoy tax relief, must have been identified and taxed.

Additional Information

If you require additional information relating to Swiss companies and the advantages they can offer for Swiss corporations, please speak to Christine Breitler at the Dixcart office in Switzerland: advice.switzerland@dixcart.com.

Private Wealth Trends as we Navigate Towards the New Normal

Posted on | by Charlotte Clabon

Background

As we start 2021, the Covid-19 pandemic remains prevalent across most of the world. Measures are starting to be put in place, in particular the introduction of vaccination programmes, that will hopefully bring the pandemic under control.

Behaviours and lifestyles have had to be dramatically altered. This has impacted on private wealth management, as much as almost every other sector of our lives. Some of these changes are likely to remain with us post pandemic. 

What are the New Wealth Management Trends?

  • Modified Perception: What is Wealth?

We are witnessing a re-assessment of key priorities.

The importance of family and health have been elevated significantly as have self-fulfilment and happiness. Financial gain naturally remains an important goal for wealth management but this is being balanced against priorities, many of which have been elevated to much greater importance during the past year.   

  • Increased Importance of Business Continuity for Family Wealth Management Planning

Contingency plans for business continuity and wealth management now need to take into account widespread country and regional lockdowns and quarantines, travel disruptions, and significant general disruption to businesses and communities.

Continuity plans need to be assessed and strengthened, where necessary, to build  capabilities now and in anticipation of recovery. These plans and contingencies need to be communicated to key internal and external stakeholders to enhance trust and transparency, and to help mitigate against potential  damage to the preservation of family wealth in the future.

  • Investor Preference for Lower Cost and More Passive Strategies

In general, there has been movement towards less risky and more ‘steady’ investment strategies. In a time of crisis, upheaval and volatility this is to be expected.

  • Client Preference for Less Risk and Additional Planning for the Future

Clients generally have a reduced risk appetite.

Covid-19 has also emphasised people’s mortality and there has been an increased  emphasis on succession planning and the sharing or moving on of responsibilities to the next generation.

As part of this process, clients have been drafting wills and/or reviewing and amending current wills.

  • Increasing Moves Towards Holistic Financial Planning and Philanthropy as a Key Objective

Dixcart has long believed in the advantages of holistic financial planning, by assisting with the management of our clients’ assets as a whole. Increasingly this is being recognised as the most effective way for the future, with a trusted adviser knowing the family members and appreciating and understanding their goals and the nuances of their specific wealth management plan.

In the post-pandemic world it is likely that there may be an increased desire by individuals to spread wealth to those less fortunate than others.

Philanthropy is increasingly becoming an objective for private wealth clients. Individuals can give directly to charity (‘chequebook philanthropy’) or more formal structures can be put in place, to provide an organised platform for giving, as well as offering important tax-planning benefits. It is important that this topic area is discussed with clients and accurately reflected in any wealth management plan.

  • Interaction with Clients Digitally – Rather than Face to Face

In many cases the only way to ‘meet’ the majority of clients has been on-line. This requires a different approach and discipline and an investment in appropriate and secure technology by professionals working with wealthy individuals and family offices, to retain relationships and maintain required support levels.

Whilst previously the older generation had, at times, been reluctant to adopt new technology, Covid-19 has provided a real incentive to embrace change. The inter-generational divide, in terms of technology use, is generally not as great as it was pre-pandemic.

Key business workflows are being ‘digitialised’ to accommodate changes in both client behaviour and employees working remotely. This trend is likely to evolve further and lead to the use of more interactive planning and performance reporting tools, initially in a virtual setting and, in the future, for in-person meetings.

With the increasing reliance on technology, the importance of cyber-security has been elevated to a much higher level. The training of family members and of staff to identify potential breaches, is becoming even more critical.

  • Collaboration Software is Changing the Way People Work

This trend is evident across a number of sectors, including private wealth.  

Wealthy families, as well as the professionals providing wealth management services, have needed to develop new methods of sharing resources across; families, teams and markets.

The new imperative is to provide access to expertise through a variety of different means, other than solely through geographic proximity and physical interaction.

The use of ‘secure team software’ is likely to continue. This applies to wealthy families with individuals located in a number of counties/locations as much as to Family Offices and private wealth managers.

Summary and Additional Information

As we slowly emerge from the recent upheaval and we move to the next ‘normal’, as in the past, the success of wealth management will depend on the ability of professional advisers to listen to clients and adapt to their changing needs. Wealth management specialists will also need to ensure that they are digitally intelligent, in terms of embracing revised means of keeping in touch with contacts and adopting more flexible wealth management operational systems.

  • Dixcart is well placed to meet these challenges. Getting to know our clients and really understanding their objectives, has consistently been our key priority. In addition, we embrace new technology and have our own IT department. The IT team works on projects across the Group, and has helped ensure that we have solutions in place, to communicate with each client in a meaningful manner, and in a way that is most appropriate to them.

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

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ARABIC: The Option of a Second Passport

Posted on | by Charlotte Clabon

خيار الحصول على جواز سفر ثانٍ – جنسية سانت كيتس ونيفيس عن طريق الاستثمار

معلومات عامة

مع ازدياد حاجة الأفراد والعائلات للتنقل في السنوات الأخيرة أصبح الحصول على جواز سفر ثانِ أمر في غاية الأهمية. تعد دول الكاريبي من المقاصد الجذّابة لعدد من الأسباب منها نمط الحياة المريح والمناظر الخلابة والمناخ المعتدل. كما أن هناك أيضاً مزايا إضافية للحصول على جواز سفر ثانٍ حتى وإن لم تكن تنوي حالياً الانتقال إلى منطقة الكاريبي.  

لماذا تحتاج العائلات والأفراد إلى جواز سفر ثانٍ؟

هناك عدة أسباب مختلفة وراء رغبة الأفراد الأثرياء في الحصول على جنسية ثانية أو بديلة ومنها:

  • توفير الأمان للأفراد في حال حدوث تغيرات سياسية أو اقتصادية أو ضريبية في بلدهم الأصلي. 
  • تسهيل السفر الدولي. فمواطنو العديد من الدول يضطرون للانتظار لفترات طويلة للحصول على التأشيرات للسفر لعدد من الدول الغربية. وقد يكون سبب ذلك أنهم مواطنو دول نامية أو قد تكون هناك عداوات بين دولهم ودول أخرى.
  • السماح لحامل جواز السفر بتجنب التمييز.
  • تجنب خطر تلقي معاملة قد تكون عدائية من طرف المسؤولين الحكوميين، والخاطفين ومحتجزي الرهائن.
  • توفير فرص جديدة للهيكلة الضريبية بالنسبة لمسائل الضرائب الشخصية. وبشكل عام، يعد مكان إقامة الفرد وجنسيته الأساس النهائي لغالبية الأحكام الضريبية.
  • مواطنو الولايات المتحدة الأمريكية وبعض الدول الأخرى ملزمون بدفع الضرائب على دخلهم العالمي، بغض النظر عن دولة إقامتهم. ولا تتوفر لهم أي فرص للتخطيط الضريبي متعلقة بمكان إقامتهم في حين أنها تتوفر لغيرهم من الناس. ومن الممكن أن يتمتع مثل هؤلاء الأفراد بمزايا ضريبية من خلال الحصول على جنسية ثانية وتنازلهم عن جنسيتهم الأصلية.

هناك عدة خيارات مختلفة بالنسبة للحصول على جنسية ثانية في منطقة الكاريبي. ولكن إحدى المزايا الكبرى لجنسية سانت كيتس ونيفيس هي أنها تضمن حصول الأفراد على جواز سفر سانت كيتس ونيفيس الذي يمنح حامله حقوق السفر الكاملة لدول الشنغن في مختلف أنحاء أوروبا.

برنامج جنسية سانت كيتس ونيفيس من خلال الاستثمار يُمكّن الأفراد من الحصول على الجنسية من خلال 3 برامج للاستثمار البديل. بإمكان الفرد الحصول على جواز سفر سانت كيتس ونيفيس خلال 3 أشهر أو أقل من تاريخ تقديم الطلب.

ماذا يوفر جواز سفر سانت كيتس ونيفيس؟

  • لا يحتاج المتقدمون لطلب الجنسية إلى السفر إلى سانت كيتس ونيفيس لتقديم الطلب ولا توجد أية قواعد تتطلب الإقامة السنوية من أجل الحفاظ على جواز السفر.
  • يمكن أن يشمل الطلب الواحد الأطفال لغاية سن أقصاه 30 سنة والأهل بسن أدناه 55 سنة.
  • تُمكن المعالجة المستعجلة من استلام جواز سفر سانت كيتس ونيفيس في غضون 45 يوم.
  • يتمتع حاملو جواز السفر بالمزايا الكاملة للشنغن وبإمكانهم السفر إلى حوالي 120 دولة حول العالم، إما دون الحاجة للحصول على تأشيرة أو من خلال الحصول على تأشيرة عند دخول البلد. كما يمكن زيارة المملكة المتحدة دون تأشيرة.
  • في حال اختار حاملو جواز السفر الانتقال إلى سانت كيتس ونيفيس، لن يخضعوا إلى ضريبة الدخل الشخصي ولا ضريبة الهدايا، ولا رسوم الوفاة، ولا ضريبة العقارات، ولا ضريبة الورثة، ولا ضريبة الأرباح الرأسمالية على دخلهم المتأتي من جميع أنحاء العالم.
  • يسمح جواز السفر لحامله بالإقامة في دولة أخرى من دول المجموعة الكاريبية (كاريكوم) في حال رغبته بذلك. وهناك 15 دولة عضوة في مجموعة دول كاريكوم.

ما هي طرق الاستثمار في سانت كيتس ونيفيس؟

تتوفر ثلاث طرق للاستثمار وهي:

الخيار 1: المساهمة في صندوق النمو المستدام (SGF)

  • يمكن لمقدم الطلب الفردي دفع مساهمة بقيمة 150.000 دولار أمريكي إلى صندوق النمو المستدام (SGF).
  • Text Box: أعلنت حكومة سانت كيتس ونيفيس عن تخفيض مساهمة الجنسية للعائلة المكونة من أربعة أفراد من 195.000 دولار أمريكي إلى 150.000 دولار أمريكي للعائلة الواحدة بين 1 يوليو 2020 و15 يناير 2021. في العادة، تبلغ قيمة المساهمة لعائلة مكونة من لغاية 4 أفراد 195.000 دولار أمريكي.
  • بالنسبة للمُعالين الإضافيين، بغض النظر عن عمرهم، تكون قيمة المساهمة المطلوبة 10.000 دولار أمريكي لكل مُعال.

الخيار 2: مشاريع التطوير العقاري المعتمدة

  • Text Box: أعلنت حكومة سانت كيتس ونيفيس أنه سيتم خفض رسوم الطوابع من 10% إلى 2.5% بين 1 يوليو 2020 و15 يناير 2021.الاستثمار بمبلغ لا يقل عن 400.000 دولار أمريكي في أحد مشاريع التطوير العقاري المعتمدة. وينبغي الاحتفاظ بملكية العقار لمدة لا تقل عن 5 سنوات بعد منح الجنسية.

وينبغي على المتقدم للطلب دفع رسوم تسجيل ورسوم إضافية مطلوبة للزوجة والأطفال دون سن 18 سنة وأي أفراد عائلة إضافيين فوق سن 18 سنة.

في حال اختيار هذه الطريقة، بإمكان مكتب Dixcart في نيفيس المساعدة في توريد خدمات إدارة العقار الذي يمكن بيعه بعد 5 سنوات.

الخيار 3: العقارات الفاخرة

  • Text Box: أعلنت حكومة سانت كيتس ونيفيس أنه سيتم خفض رسوم الطوابع من 10% إلى 2.5% بين 1 يوليو 2020 و15 يناير 2021.الاستثمار بمبلغ لا يقل عن 200.000 دولار أمريكي في عقار فاخر جديد. وينبغي الاحتفاظ بملكية العقار لمدة لا تقل عن 7 سنوات بعد منح الجنسية.

وينبغي على المتقدم للطلب دفع رسوم تسجيل ورسوم إضافية مطلوبة للزوجة والأطفال دون سن 18 سنة وأي أفراد عائلة إضافيين فوق سن 18 سنة.

المُعالون

يمكن شمل الأطفال غير المتزوجين والمُعالين فوق سن 18 سنة ودون سن 30 في الطلب. كما يمكن أيضاً شمل الأهل بسن 55 فما فوق في الطلب. ويمكن منح الجنسية للأجيال المستقبلية على أساس النسب.

المعاملة المستعجلة

تستغرق مدة معالجة أي من الطرق الثلاث المذكورة أعلاه للحصول على جنسية سانت كيتس ونيفيس حوالي 3 شهور. ولكن، بمقابل مبلغ 46.000 دولار أمريكي، يمكن استعجال الطلب واستلام جواز السفر في غضون 45 يوم تقريباً.

معلومات إضافية

Dixcart هي شركة تقديم خدمات مُرخصة لبرنامج جنسية سانت كيتس ونيفيس من خلال الاستثمار وبإمكانها تقديم التفاصيل الشاملة حول الطرق البديلة المتوفرة لتقديم الطلب وأية رسوم إضافية قد يلزم دفعها والمساعدة في تنسيق الطلبات.

إذا كنت ترغب بالحصول على المزيد من المعلومات حول برنامج الجنسية الاقتصادية لسانت كيتس ونيفيس يُرجى الاتصال بغراهام ساتكليف (Graham Sutcliffe) في مكتبنا في نيفيس: advice.nevis@dixcart.com أو بشخص الاتصال الذي تتواصل معه عادة في Dixcart.

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Trusts and Foundations: A Q&A

Posted on | by Charlotte Clabon

A Changing World

Particularly, in light of the recent Covid-19 pandemic, many individuals are considering how they can best protect their family health and their family wealth, across future generations.

Many have already set up family offices and use Trusts and/or Foundations as wealth preservation vehicles within these.

This Article is intended for those considering taking such steps.

Dixcart has offer 45 year of experience in helping establish Trust and Foundation vehicles and providing Trustee services. We are licensed to offer these services across the six jurisdictions of; Cyprus, Guernsey, Isle of Man, Malta, Saint Kitts & Nevis and Switzerland.

What will be most appropriate, depends on your circumstances and we strongly advice that you take professional advice: advice@dixcart.com.

Questions and Answers

What is the History in Relation to each Vehicle?

Trusts have been used in common law countries for many hundreds of years, for a variety of reasons. With the development of international business, international tax and estate planners were quick to realise the benefits of using offshore trusts in mitigating tax liabilities and assisting in the flow of family wealth through the generations.

Historically, clients from civil law countries have been more familiar with the concept of the Foundation. However, now they are becoming increasingly aware of the benefits of Trusts, and it is the same in terms of common law countries and Foundations.  

How Can a Trust or Foundation Help Preserve Wealth Across Future Generations?

It is a legal arrangement where the ownership of the ‘Settlor’s’ assets (such as property, shares or cash) is transferred to the ‘Trustee’ (usually a small group of people or a trust company) to manage and use to benefit the ‘Beneficiaries’, a third person, or group of people, under the terms of a Trust Deed.

A Foundation creates a separate legal entity with its own legal personality, distinct from the ‘Founder(s)’, who transfers assets into the Foundation, the ‘Council’ manage the Foundation and the ‘Beneficiaries’, benefit from it.

Charitable foundations are the most common and the majority are set up to exist in perpetuity. This means that control over the foundation and its assets can be passed to countless generations of the family.

Are Trusts and Foundations ‘Private’?

In most jurisdictions, no requirements currently exist to register a Trust or for any document or information in connection with the Trust to be placed in the public domain, and the arrangement may therefore be kept completely private.

Limited information in relation to Foundations will be publicly available, but there is currently no requirement that the identity of the Founder, Beneficiaries or purposes of a Foundation should be made publicly available.

Trusts and Foundations can, therefore, both be private arrangements under current rules.

What are the Key Differences Between a Trust and a Foundation?

A number of the key differences are outlined below:

  • A Trust is not a legal entity; a Foundation is a registered legal entity.
  • The ownership of the assets in a trust rests with the Trustee whilst the Foundation owns the property concerned directly.
  • by its Charter and Articles or regulations.
  • Potentially, a Foundation provides more certainty than a Trust and it is less likely to be treated as a potential ‘sham’, particularly in civil law jurisdictions.
  • information and they generally do not have any equitable or other forms of ownership of foundation assets.
  • Trusts are intrinsically more flexible than Foundations.
  • A Trust can be used for commercial purposes but Foundations, except under limited circumstances, cannot be so used.

What are the main Reasons for having a Trust or a Foundation, in addition to Wealth Preservation?

In addition to the preservation of wealth, selected distribution of assets and favourable tax treatment, Trusts and Foundations are used to achieve the following:

  • Circumvention of forced heirship laws
  • Asset protection
  • Confidentiality
  • Continuity on death
  • Philanthropy

Dixcart Offices Regulated to Provide Private Client Services:

Dixcart has six offices with extensive expertise in providing Private Client Services, including the provision of Trusts and Foundations:

  • Cyprus: Dixcart Management (Cyprus) Limited is regulated and holds a full fiduciary licence under the Cyprus Securities and Exchange Commission.

Email: advice.cyprus@dixcart.com.

  • Guernsey: Dixcart Trust Corporation Limited is regulated and holds a full fiduciary licence under the Guernsey Financial Services Commission. Dixcart Trust Corporation Limited is a member of the Guernsey Association of Trustees. Email: advice.guernsey@dixcart.com.
  • Isle of Man: Dixcart Management (IOM) Limited holds a full fiduciary licence and is regulated by the Isle of Man Financial Services Authority. Dixcart Management (IOM) Limited is a member of the Association of Corporate Service Providers.

Email: advice.iom@dixcart.com.

  • Malta: Elise Trustees Limited Dixcart House is regulated and holds a full fiduciary licence under the Malta Financial Services Authority.

Email: advice.malta@dixcart.com.

  • Nevis: Dixcart Management Nevis Limited is regulated and holds a full fiduciary licence under the Financial Services Regulatory Commission.

Email: advice.nevis@dixcart.com.

  • Switzerland: Dixcart Trustees (Switzerland) SA is a certified member of Swiss Association of Trust Companies (SATC). Dixcart Trustees (Switzerland) SA is affiliated to “Association Romande des Intermédiaires Financiers (ARIF)” a Swiss self-regulatory organization (SRO) officially recognised by Swiss Federal Financial Market Supervisory Authority (FINMA).

Email: advice@switzerland.com.

Summary and Further Information

Trusts and Foundations can be used to achieve many objectives. The choice of jurisdiction for a Trust and/or Foundation is important and is generally governed by the specific circumstances of each family/family office.

If you would like additional information, please speak to your usual Dixcart contact,  one of the Dixcart offices above, or email: advice@dixcart.com.

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The Benefits of Appointing a Non-Executive Director (NED)

Posted on | by Charlotte Clabon

What is a ‘NED’?

Non-Executive Directors (NEDs) can play an important role within a business. They sit on the board of a company but are not part of the executive team and can therefore bring an impartial view without the conflict of having to manage the day to day operations of the company.

NEDs can monitor the executive directors, become involved in strategic policy making and, of course, act in the interest of the company’s shareholders.

What are the Benefits of Having a NED on the Board?

  • Add an impartial view to the day to day running of the business.
  • Help ensure that the Executive Directors are operating as efficiently as possible.
  • Contribute to the strategic plan of the company.
  • Monitor the performance of the company and offer constructive ideas and solutions, if required.
  • Act in the best interest of the shareholders.
  • Add additional experience and credibility to the company board.
  • Expand the intellectual and strategic resources of the company.

What Type of Person Acts as a NED?

A Non-Executive Director is typically chosen based on their experience, reputation and understanding of the business. This individual is likely to be professionally qualified, with a strong background in corporate governance and risk. They have usually worked at a ‘C-suite’ level in at least one other previous company.

Other Legal and Regulatory Aspects to Consider

All directors, including NEDs have legal responsibilities to conduct their duties in an appropriate manner and they need to have an understanding of the requirements of the jurisdiction that they work in, as well as a reasonable knowledge of the other jurisdictions in which the company operates. If these individuals do not comply with their duties, they may be liable to civil and/or criminal proceedings and may be disqualified from acting as a director.

A NED must act in good faith and in the best interest of the company and they must not delegate their overall responsibility. Any potential conflict of interest should be fully and properly disclosed to, and approved by, the company to ensure that no conflict exists in relation to the company’s constitution.

Summary

A Non-Executive Director on the board of a company can offer a number of positive benefits. Care should always be taken to ensure that such an individual is appropriate and has the necessary experience and skill set to join the board in this capacity. The appointment of the ‘right’ NED can bring a plethora of additional attributes to the company.

Dixcart have a number of senior managers who have extensive experience acting as NEDs, across a wide variety of industry sectors.

Additional Information

If you require further information regarding Non-Executive Directors, please speak to your usual Dixcart contact or email: advice@dixcart.com.

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St Kitts & Nevis

St Kitts & Nevis Economic Citizenship – A Brief Jurisdiction Summary

Posted on | by Charlotte Clabon

Nevis is an attractive international jurisdiction for citizenship, international business corporations and trusts.

What are the St Kitts & Nevis Citizenship by Investment Routes?

There are three investment routes available, to gain St Kitts & Nevis Economic Citizenship:

Option 1: Sustainable Growth Fund (SGF) Contribution

  • A single applicant can make a contribution of US$150,000 to the Sustainable Growth Fund (SGF).

For additional dependants (children or parents), the contribution requirement is US$10,000 per dependant. The addition of a sibling under the Sustainable Growth Fund, will be US$20,000.

Option 2: 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 organise management services, if the property is rented out. The property can be sold on after 5 years.

Option 3: 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.

Advantages: St Kitts & Nevis Economic Citizenship Programme

A St Kitts & Nevis passport can provide a relatively fast option to ease travel and to gain residence, if required, whilst plans are being made to live elsewhere. Naturally, successful applicants can choose to move to St Kitts & Nevis.

Applicants do not need to visit St Kitts & Nevis in order to apply for a St Kitts & Nevis passport. They do, however, need to use an approved intermediary on the island, such as Dixcart, to coordinate the application.

There are NO conditions attached to a St Kitts & Nevis passport in terms of the number of days that need to be spent on St Kitts & Nevis. Other advantages include:

  • Visa-free access to over 130 countries around the world including Europe, UK, Hong Kong, Russia, Ukraine, and Switzerland.
  • Fast processing times; approval can be achieved in between 45 to 60 days using the ‘accelerated process’ and 90 to 120 days with standard processing.
  • Inclusion of dependant children up to the age of 30.
  • Inclusion of dependant parents from the age of 55.
  • Inclusion of siblings 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.
  • Sponsorship of common law partners.
  • Ability to pass citizenship on to children.

Additional Advantages Offered by the Jurisdiction of St Kitts & Nevis

Nevis offers a number of benefits as an International business centre. It does not levy VAT or other indirect taxes in relation to Nevis International Business Corporations (IBCs), and there is NO personal income tax, NO capital gains tax, NO wealth tax, and NO death duty or inheritance tax.

Nevis Structures and their Key Benefits:

  • IBC – International Business Corporation  
    • Sole directors allowed (both personal and corporate).
    • Incorporated in 24 to 48 hours.
    • Easy to setup and maintain, private and cost effective.
    • Ability to have documents legalised in the UAE, due to the St Kitts Consulate in Dubai.
    • Certificates of Good Standing/Incumbency can be notarised and apostilled in under 24 hours.
  • LLC – Limited Liability Company
    • A legal entity with separate rights and liabilities, distinct from its managers and members, which is liable for its own debts, obligations and liabilities.
    • Can be used for any legal purpose, including financing US and non-US operations, real estate holding, manufacturing and investment vehicles for international trusts.
    • Incorporated in 24 to 48 hours.
    • Foreign LLCs may convert to become a Nevis LLC through use of a simple conversion plan.
    • Foreign entities may convert to become a Nevis LLC after redomiciling to Nevis.
    • Extra protection can be gained by stating that ‘the explicit naming of a member or manager in a legal action being brought against the company is legal grounds for dismissal or at least for a motion of misjoinder’.
  • PTC – Private Trustee Company
    • No licence required to act as trustee (for private family arrangements).
    • Incorporated in 24 to 48 hours with sole directors allowed (both personal and corporate).
    • Can be owned either by a purpose trust or by the settlor.
    • Ability to have a representative of the underlying asset companies on the Board of the PTC and it is relatively easy to replace the Board and therefore the effective trustees, if necessary.
  • Nevis International Trusts
    • Registered in 24 to 48 hours.
    • Cannot be declared void, voidable or defective by reason of any forced heirship rules of the Settlor’s domicile, residence, place of current incorporation, formation or establishment.
    • No rule against perpetuity unless otherwise provided for; the international trust can therefore have unlimited duration.
    • Foreign judgements are not enforceable in Nevis.  Any civil action to recover assets would need to be brought, in addition, in the Courts of St Kitts & Nevis.
    • A deposit of $100,000 must be paid before creditor action can be taken.
    • If the Protector has the authority to direct the Trustees to make and approve distributions, or to direct the Trustees to make particular investments, statutory protection is given to the Trustees for acting on the direction of the Protector, in the absence of wilful misconduct.
  • Multiform Foundations
  • Asset protection and succession planning opportunities.
  • Can be set up for estate planning, charity, financing and special investment holding arrangements.
  • Can take the form of a foundation, a company, a trust or a partnership.
  • The ordinance allows for entities to be converted or transformed, continued or consolidated and merged into Nevis Multiform Foundations.

Additional Information

Nevis offers a number of attractive international entities and an appealing Economic Citizenship Programme. If you require additional information, please contact Graham Sutcliffe at our office in Nevis advice.nevis@dixcart.com or your usual Dixcart contact.