The entrepreneurs who turn to offshores in an attempt to find absolute confidentiality are disappointed to find out that it no longer exists. The offshore jurisdictions are subject to much more stringent regulation than, for instance, 20 years ago. However, there are still ways to ensure that the beneficial owner’s identity remains more or less anonymous, and Nevis is a good destination for that. It is also known as a tax haven where you will not pay any corporate income tax if you generate 100% of your income abroad. Moreover, Nevis is the first territory to mention if we talk about asset protection, which may be interesting for you as well.
If you want to find out more up-to-date information on Nevis and other great offshore jurisdictions, you can read here. This is our portal focused on international business and banking, asset protection, tax optimization, citizenship by investment, and other important things. You can get in touch with our consultant and schedule a free meeting to talk about your situation and business needs and find the best available destination that will help you achieve the goals set. We can set up a company or a corporate/personal bank account for you in different destinations at a reasonable fee.
Is Nevis a Tax Haven?
If we consider the taxation system of St. Kitts and Nevis, we can rightfully call it a tax haven, and this is an especially important feature for non-resident offshore companies and trusts. Nevis takes a lot of measures aimed at confidentiality protection, which attracts many foreign entrepreneurs here.
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Present-day Tax Structure in Nevis
Let’s look at the taxes payable by residents and non-residents in Nevis:
- Non-residents have to pay a fixed withholding tax (15%) on the payments they make. However, this is not applicable to resident/non-resident companies that keep their assets in banks abroad and earn profits from foreign sources. As long as the money does not pass through Nevis, it is not subject to withholding tax.
- If you transfer property, you will have to pay a stamp duty varying between 6% and 10%.
- The VAT rate in St. Kitts and Nevis amounts to 17%, and it is included in the price of products. Restaurants and hotels pay the 10% VAT, while insurance, transportation, medical services, and some food products are not subject to VAT at all.
- Residents and foreign citizens who are not tax residents of Nevis are not subject to withholding taxes, but they pay 6% of their salary as social security contributions.
- Companies that are Nevis residents pay a corporate tax of 33%, while foreign offshore companies that generate profits abroad are not liable for this tax.
Remember that you cannot expect absolutely everything to be tax-free: for example, non-residents of Nevis are required to pay a fixed tax (15%) on interest, royalties, and dividends, while resident companies are exempt from it.
If you decide to carry out unincorporated business activities on the island (this refers to groups or individuals that run a business without being registered under the local Companies Act), you will be liable for a 4% tax.
There is no capital gains tax in Nevis – with one exception: you sell real estate or local assets after possessing them for less than 12 months.
Property Tax in Nevis
Here are the current rules for those who are considering investing in the real estate of this offshore jurisdiction:
- Those who want to acquire Nevisian real estate are required to get a license that costs 10% of the property value. However, there is no need to do that if you buy real estate to receive a local passport.
- As soon as you have obtained the license, the amount of the property tax payable will range between 0% and 3% depending on the use and location of the property.
- If you decide to sell the real estate you have acquired, you will have to pay a stamp duty that ranges between 6% and 10%.
If you sell the Nevisian real estate, you are not liable for the capital gains tax, which is good news for all investors. Real estate prices here are lower than on other Caribbean islands, which is a good reason to choose St. Kitts and Nevis for investment. You can get in touch with our experts if you are interested in applying for local economic citizenship.
Trust Tax
If you want to take advantage of the strongest possible asset protection in Nevis, think of creating a trust here. Here are the main benefits of the solution:
- There are no mandatory inheritance rules in Nevis, which means that you can distribute your assets in any way you think fit.
- Irrevocable trusts have no expiration date, which allows for easy asset transfer from one generation to another without making wills or participating in court processes.
- The Nevis trust you set up is only regulated by the local laws. As a result, foreign creditors/claimants can only claim the assets by addressing the local courts and depositing a bond of 100,000 US dollars (which is not returned if the claimant loses) during a personal visit to the country. As you see, just these rules protect your assets in the best way possible.
- Nevis trusts are not subject to any taxes, which means that you can optimize your expenses.
Choosing Nevis
If you want to reduce your tax burden or set up an offshore company or a trust, you will hardly find a better destination than Nevis. The rules and regulations adopted here fully comply with FATF and OECD requirements.
Businesses that carry out their operations outside the country are not obliged to submit any reports here, which simply means less work.
And if you want to get the strongest possible protection for your assets, Nevis is simply second to none (and any asset protection lawyer will confirm that).
Please follow the above link to discover more facts about Nevis and other offshore jurisdictions – or get in touch with our consultant straight away to get professional assistance and discuss your needs.
