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British Virgin Islands

VISTA Trust

Trusts established in the British Virgin Islands under the Virgin Islands Special Trusts Act 2003 (Amended 2013) are specifically designed to hold shares of a corporation incorporated in BVI.

The owner establishes a trust consisting of the shares of his company under which can be held indefinitely. The trustee’s supervision and intervention obligations under the general law are eliminated and discharged of all management responsibility in the company, which can be carried out by the directors without interference in the affairs of the company by the trustee.

The trustee has a statutory duty to retain the designated shares, which are the object of the VISTA trust and any duty to preserve or improve the value of the trust fund will be subordinated to this obligation.

However, its powers are limited to dispose of the actions in the circumstances expressed by the terms of the trust deed, not being able to intervene in the management of the company except to solve specific problems and only in a prescribed number of circumstances that must be stated expressly in the deed.

The deed specifies the rules of the “Office of the Director” that establishes how the trustee must exercise his voting powers regarding the appointment, removal, and remuneration of the directors.

Although the VISTA regime is strictly limited to a trustee who holds shares only in a company incorporated into BVI, the underlying company may retain ownership of any other type of assets.

VISTA trusts are allowed to have more than one trustee, but at least one of them must be a designated trustee which is defined by the Act as a trustee licensed to carry out trust business in the BVI under the Banks and Trust Companies Act, 1990.

VISTA reduces the level of risk faced by the trustee who will be more inclined to hold high-risk assets and enter into speculative transactions as their obligation to monitor and manage the trust funds or intervene in highly complex financial transactions and any liability for any resultant losses for its failure to do so is removed by the VISTA Act.

The VISTA Act removes the trustee’s obligation from the prudent investor and the trustee has no obligation to oversee the management of the underlying company.

Taxes

A trust established in the British Virgin Islands may not be subject to local taxes applicable to the assets and income of the trust.

It must be noted that the choice of law of the trust would not be applicable to tax matters, which would be governed by the respective jurisdiction where the settlor, beneficiaries, assets or trustee are located, as applicable.

You should consult with your tax advisor or accountant to know the tax implications in your jurisdiction of residence when establishing a trust in the BVI, transfer assets to it and receive profits from said assets.

  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • - Offshore Income Tax Rate
  • - Corporate Tax Rate
  • 0% Capital Gains Tax Rate
  • 0% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 0% Royalties Withholding Tax Rate
  • 0 Losses carryback (years)
  • 0 Losses carryforward (years)
  • 3.75% Social Security Employee
  • 3.75% Social Security Employer
  • 0% Personal Income Tax Rate
  • 0% VAT Rate
  • 0 Tax Treaties

Country details

British Virgin Islands
USD
Road Town
North America
en-VG
21,730

The British Virgin Islands (BVI), officially the Virgin Islands, are a British overseas territory located on the Francis Drake Channel, east of Puerto Rico, in waters of the Caribbean Sea. The islands are part of the archipelago of the Virgin Islands, the other islands being part of the United States Virgin Islands and the Spanish Virgin Islands belonging to Puerto Rico.

The archipelago is made up of about forty islands, of which eleven are inhabited. The largest are Tortola, Virgin Gorda, Anegada and Jost Van Dyke. Its population is 27 800 inhabitants, living 23 000 on the island of Tortola, where it is located Road Town, the capital.

The executive power of the British Virgin Islands is shared between the monarch of the United Kingdom who is represented by a governor. This governor is appointed directly by the Queen on the advice of the British Government. Defense and foreign affairs are under the responsibility of the United Kingdom.

The BVI is one of the most prosperous economies among the Caribbean states, with one of the highest GDP per capita worldwide. Political stable, with modern infrastructures and a pro-business environment. Its main sectors are offshore financial services and tourism. Due to its close relationship with the US Virgin Islands, the US Dollar is the official currency.

The British Virgin Islands is one of the world's largest offshore financial centers and a world's leading center for company incorporation. The sector accounts on over half of the jurisdiction’s GDP and incorporation fees account for more than half of Government revenue.

The other significant economic sector is tourism, which approximately contributes to nearly half of the national income and employs a great part of its population.

The islands are a popular destination for its numerous white sandy beaches, the Baths of the Virgin Gorda, scuba diving on coral reefs near Anegada, the well-known bars on the Jost Van Dyke, or chartered yachts for exploring the less accessible islands.

Services

We can help you incorporate a VISTA Trust in British Virgin Islands.
Please, contact us to request a free, no obligation consultation.

Disclaimer

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