British Virgin Islands *
VISTA Trust
The Virgin Islands Special Trusts Act, commonly known as the VISTA Act, was enacted in 2003 and amended in 2013 to provide a distinctive legal framework for trusts in the British Virgin Islands. The Act is designed to accommodate the unique requirements of settlors wishing to retain or transfer control of shares in BVI-incorporated companies while minimizing trustee interference in the management of the underlying corporate entity.
This regime represents a significant departure from traditional trust principles, particularly in its treatment of trustee responsibilities and investment oversight. VISTA trusts are now a widely used structure in the context of succession planning, corporate governance, and wealth management.
The core function of a VISTA trust is to enable the holding of shares in a BVI company without imposing on the trustee the usual fiduciary obligations associated with active asset management. Under general trust law, trustees are typically expected to manage trust assets prudently, including overseeing companies held by the trust and intervening in their operations when necessary to preserve or enhance value. The VISTA framework intentionally modifies this model.
VISTA trusts can be used for long-term or perpetual holding of shares, allowing the original owner (the settlor) to establish a trust without triggering trustee interference in the day-to-day or strategic operations of the company. This is particularly valuable where the settlor wishes to ensure that management control remains with the company’s directors or successors, free from the trustee’s oversight.
A defining feature of the VISTA regime is the trustee’s duty to retain the designated shares—the assets which constitute the trust property. This duty overrides the usual trustee obligation to diversify or optimize the trust portfolio. The trustee is legally prohibited from disposing of the shares unless specific conditions, as outlined in the trust deed, are met.
Crucially, the trustee has no general obligation to monitor or manage the affairs of the underlying company. Intervention by the trustee is only permitted in narrowly defined circumstances, which must be clearly stated in the trust instrument. These circumstances may include situations such as a breach of fiduciary duty by directors, insolvency, or failure to meet governance thresholds. Outside of these prescribed cases, trustees are explicitly excluded from management activities.
This structure effectively limits the trustee’s role to one of passive oversight and allows the underlying company to function autonomously, subject to the company’s internal governance and the authority of its board of directors.
To address the governance interface between the trust and the company, the VISTA Act introduces the concept of the “Office of Director” provisions. These clauses within the trust deed guide how the trustee should exercise its voting powers concerning the appointment, removal, and remuneration of directors.
Rather than granting the trustee discretion in such matters, the trust deed sets forth binding rules the trustee must follow. These provisions may, for example, require the trustee to vote in line with instructions from a protector or another party designated by the settlor. The purpose is to preserve continuity in corporate management while still allowing for mechanisms to address misconduct or underperformance in a controlled manner.
While a VISTA trust must hold shares exclusively in BVI-incorporated companies, the companies themselves are not restricted in the nature of assets they may own or the business activities they may undertake. This means the underlying company may engage in trading, hold investments, or own property anywhere in the world, subject to applicable laws and regulations in those jurisdictions.
The separation of trust asset restrictions (limited to BVI shares) from the company’s operational scope (which may be global and diversified) is a distinctive feature that enhances the practical utility of VISTA structures.
The VISTA framework allows for multiple trustees, but at least one must be a “designated trustee” as defined by the Act. A designated trustee is an individual or entity that holds a valid license to conduct trust business in the BVI under the Banks and Trust Companies Act, 1990. This ensures that the administration of VISTA trusts remains subject to regulatory oversight, even though the trust structure itself minimizes trustee responsibilities.
In practice, this often results in a dual-trustee arrangement where a licensed professional trustee is appointed to fulfill statutory obligations, while other trustees (possibly including family members or advisors) serve in parallel roles with more limited duties.
In addition to appointing licensed professional trustees, settlors may opt to establish a Private Trust Company (PTC) to act as the trustee of a VISTA trust. A PTC is a corporate entity incorporated specifically to serve as trustee for one or more related trusts, typically created by or for the benefit of a single family. In the BVI, PTCs are regulated under a relatively light-touch regime, provided they do not offer trust services to the public. They are exempt from licensing requirements under the Banks and Trust Companies Act 1990, so long as they qualify for the exemption under the BVI’s Financial Services (Exemptions) Regulations, 2007.
The use of a PTC offers several advantages in the VISTA context. It allows settlors and family members to exert greater influence over trust governance through their participation in the PTC’s board, enabling a more personalised and responsive trustee function without compromising the non-intervention principles of the VISTA framework. Additionally, PTCs can streamline trust administration, reduce compliance costs over time, and serve as a long-term platform for managing family wealth across generations, particularly where multiple trusts are established under a cohesive family governance structure.
The VISTA regime provides trustees with an unusual degree of liability protection. Under traditional trust law, trustees are expected to act prudently and may be held liable for failing to prevent losses arising from poor asset performance or risky investments. By contrast, the VISTA Act explicitly removes these obligations in relation to the designated shares.
Trustees under a VISTA trust are not required to monitor the company’s financial or operational performance, nor are they responsible for ensuring that the company’s assets are preserved or its business practices are sound. As a result, trustees are shielded from liability stemming from company-related losses or business risks, provided they have complied with the terms of the trust.
This aspect makes VISTA trusts particularly suitable for settlors wishing to place speculative or high-volatility assets into trust structures without burdening trustees with fiduciary oversight responsibilities.
VISTA trusts are private law instruments and do not of themselves trigger any specific tax obligations within the British Virgin Islands. The BVI does not impose income, capital gains, inheritance, or estate taxes on trusts, making the jurisdiction broadly favorable for wealth structuring and succession planning.
The VISTA trust model developed by the British Virgin Islands offers a distinct and legally secure mechanism for holding shares in BVI companies without subjecting those companies to trustee control. By disapplying core aspects of general trust law—particularly around fiduciary oversight and the duty to act as a prudent investor—the regime provides a uniquely passive role for trustees while ensuring governance safeguards through mechanisms such as the “Office of Director” provisions.
The VISTA framework is most suitable for individuals or families seeking to preserve the continuity of business management across generations, especially in cases where the assets held within the trust include active or closely held companies. With its clear delineation of roles, statutory protections, and administrative simplicity, the VISTA trust continues to be a distinctive option within the global trust landscape.
Legal *
Country code – VG
Legal basis – Common law
Legal framework – The Virgin Islands Special Trusts Act 2003 (Amended 2013)
Formal name – VISTA Trust
Requirements - The trust assets must be shares in a BVI company, which must be transferred into the name of the trustee.
Settlor – The settlor is the person, individual or corporate body, who establishes and whose assets are put into the trust. The settlor of Trust in the British Virgin Islands may also be the beneficiary of those assets and may retain control of the trust. There is no protection from a subsequent settlor’s bankruptcy after assets are gifted to the trust
Trustee – VISTA trusts are permitted 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 which must be able to carry on trust business in the BVI under the Banks and Trust Companies Act, 1990.
The VISTA regime is strictly confined to a trustee holding shares only in a BVI incorporated company (i.e. no other asset can be held directly by the VISTA trustee). However, there is nothing preventing the ownership of other assets by the trust (e.g. cash, property, equities, etc.) which can be held by the underlying BVI company (as opposed to directly by the trustee).
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 its obligation to monitor and manage the trust fund investments or intervene in highly complex financial transactions (and any liability for any resultant losses for its failure to do so) is removed by the Act
The VISTA trust removes the trustee's obligation from the prudent investor rule and the trustee has no obligation to oversee the management of the underlying company.
Beneficiaries – Beneficiaries are those who get benefit from the trust.
There are specific provisions to prevent beneficiaries from draining the trust of its assets and spending in a thrifty way. BVI Vista Trusts allows avoiding both probate and forced heirship rules.
Protector – The trust deed may provide for the appointment of a protector. A protector is often appointed pursuant to the terms of the trust and has such duties and functions as prescribed by the trust.
Disclosure - A licensed trust company is subject to the strict confidentiality laws of The British Virgin Islands and must respect the confidentiality of the trust.
Protection from foreign judgments – The law does not include limited provisions regarding ignoring and not enforcing foreign judgments. The Hague Convention on Trusts applies in the British Virgin Islands.
Protection from creditors – The VISTA Trust and the Trustee act do not repeal the Statute of Elizabeth, so transfers by the settlor to the trust may be set aside if the settlor transferred the property before the debt arose. The creditor must prove the fraudulent transfer of assets to the trust, of which its definition is not clear in the law. Creditor claims may be brought jointly. If a fraudulent transfer is proven, trust may be declared invalid. There is no statue of limitations on a fraudulent transfers.
Protection for immigrant trusts – Trusts that migrate from other jurisdictions do not benefit from retroactive protection.
Exclusion of foreign law – There are limited exclusions in the legislation to exclude foreign law.
Choice of law – The choice of law of the British Virgin Islands to govern the trust or a particular aspect of that trust, is valid, effective and conclusive regardless of any other circumstances.
Duration - A VISTA Trust is unlimited in duration.
Compliance – There is no mandatory requirement to register any trust including a VISTA trust with the regulatory authorities in the BVI and, in fact, all trust deeds are exempt from registration. Therefore, the details of a BVI trust will ordinarily remain confidential subject only to disclosure as may be required by an order of the BVI court.
- Settlor as a beneficiary *
- Bankruptcy protection * *
- Ignore foreign judgements * *
- Hague convention on trusts * *
- Choice of law is binding * *
- Protection from immigrant trusts * *
- Community property provisions * *
- Custodian trustee permitted * *
- Rule against perpetuities (years) * *
- Limited Specific exclusion of foreign law *
- Yes Settlor can retain control *
Protection of Settlor *
Protection from foreign judgements *
- Avoidance of forced heirship * *
- Spendthrift provisions * *
- Exclusion of Statute of Elizabeth laws * *
- Trust invalid if transfer fraudulent *
- Creditor must prove fraudulent transfer * *
- Clear definition of fraudulent transfers * *
- Separation of creditor claims * *
- Statutory limitation on fraudulent transfer * *
Protection of Beneficiary *
Transfers *
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 *
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 King 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.