Nevis offshore trust.
Nevis offshore trust regulation
Nevis offshore trusts are among the most popular asset protection and tax minimisation tools in the offshore world. Nevis offshore trust – It is not only used by businesses, but also by individuals who wish to protect their wealth for future generations. Nevis offshore sector is controlled by the Minister of Finance and a special department of financial services. Nevis is part of the Federation of Saint Kitts and Nevis, however the island has its own legislation, which enables it to provide high quality offshore services.
Currently Nevis offshore trusts regulation is based on the law “On the Trusts “, adopted in 1994. It regulates the operation of international trusts and approves various forms of trusts that can be set up on the Island. There are two general types of trusts: revocable and irrevocable. The choice of one over the other will depend on the purpose of Nevis offshore trust creation. Revocable trust is best used for asset protection as it cannot be later amended or cancelled. Irrevocable, in turn, are used as a will or in order to avoid excess waste of resources.
- Charitable Trust
- Non-Charitable Trust
- Spendthrift or Protective Trust
- Qualified Foreign Trust
The content of a trust agreement is strictly confidential and is often used instead of a will when the settler wishes that the details of the conditions of the inheritance transfer remained confidential.
There are several reasons for the creation of a Nevis offshore trust. Some of these are presented below:
- Political stability of the region
- Good reputation
- High confidentiality and protection of business information
- High degree of asset protection
- Customs duties exemption
- Full exemption from taxation
- Effective tax planning
- No exchange controls
- No requirement to submit annual reports or financial data
- Rule of obligatory share in the hereditary mass does not apply
- Nevis is not involved in the agreement on international tax treaties with the United States, unlike many neighbouring jurisdictions
- Ability to obtain immunity from the legislation of the country of origin
- A higher level of return on invested funds
- Exemption from payment of income tax and stamp duty
In general, compared to other jurisdictions, trusts registered in the island of Nevis are in an enviable and privileged position.