Nevis
Multiform Foundation
Established under the Nevis Multiform Foundations Ordinance, 2004, the Nevis Multiform Foundation is a unique and highly adaptable legal entity. Unlike traditional foundations, it permits the designation of its legal character upon formation—allowing it to operate as a company foundation, trust foundation, partnership foundation, or a standard foundation. The selected form is specified in its founding document, the Memorandum of Establishment. Furthermore, a Multiform Foundation may alter its form at any stage during its existence, providing significant operational flexibility.
A Nevis Multiform Foundation is recognized as a separate legal person, distinct from its founder (also known as the subscriber), board members, and beneficiaries. Upon formation and endowment, the foundation becomes the sole legal owner of its assets. These assets are no longer considered to belong to the founder or any individual associated with the foundation. This separation serves as a core feature, enabling the foundation to hold and manage property independently.
The foundation’s ability to function autonomously makes it suitable for a wide variety of applications, including charitable endeavors, estate and succession planning, and asset holding or protection strategies. Importantly, the assets of the foundation cannot be claimed as personal property of any party involved, reinforcing its protective utility in legal and financial planning.
While typically associated with private wealth and estate planning, Nevis Multiform Foundations are not limited to non-commercial or philanthropic activities. They may engage in trade, business operations, and investment, provided that such activities align with the objectives specified in the foundation’s bylaws.
However, the law does impose certain limitations. A Multiform Foundation should not be primarily engaged in continuous profit-driven commercial activities unless these profits are directed toward fulfilling its stated purposes. This limitation does not preclude occasional or incidental commercial operations.
In practice, these foundations are often used to hold and manage a wide array of asset types, such as:
- Real estate
- Securities (stocks and bonds)
- Bank accounts and deposits
- Investment portfolios
- Intellectual property
- Art and collectible items
- Pension or retirement funds
- Crypto assets
The establishment of a Multiform Foundation begins with a founder (subscriber), who defines the foundation’s objectives, operational rules, and endows it with assets. The founder may also serve as a member of the management board or be a beneficiary, unless otherwise restricted by the foundation’s governing documents.
The management board is responsible for administering the foundation in accordance with its bylaws and structure. The role of the board adapts depending on the foundation’s form. For instance:
- In a trust foundation, board members act similarly to trustees.
- In a company foundation, they function like a corporate board of directors.
A supervisory board may also be established, with oversight functions akin to a trust protector. This board ensures the foundation is managed in line with its bylaws and holds the management board accountable.
All individuals or entities involved with the foundation—subscribers, board members, beneficiaries, and protectors—may be natural persons or legal entities, regardless of nationality.
Nevis Multiform Foundations are not constrained by the common law rule against perpetuities, meaning they may be established for an indefinite period or for a specific term as defined in their bylaws. They may be revocable or irrevocable, depending on the founder’s intentions and legal structuring.
Foundations may be created to benefit named individuals, classes of persons, or to serve more abstract goals (e.g., charitable purposes). Importantly, there is no legal requirement to identify or disclose beneficiaries in the founding documents.
A foundation can also be established posthumously via the terms of a will, offering a structured method for managing and distributing assets after death.
The Nevis Multiform Foundations Ordinance allows for the continuation or transformation of foreign foundations and companies into Nevis Multiform Foundations. Entities established under foreign law may transfer their legal domicile to Nevis and assume a multiform foundation structure, either through continuation, merger, or consolidation. This feature supports global estate planning and international business structuring.
One of the notable features of the Nevis Multiform Foundation is its asset protection strength. Legal protections shield foundation assets from creditor claims under strict conditions. To challenge a transfer of assets into a foundation, a creditor must:
Initiate a new claim in the courts of Nevis, as foreign judgments are not recognized;
- Retain Nevis-licensed legal counsel;
- Post a cash bond as a prerequisite to litigation;
- Demonstrate actual intent to defraud, proven beyond a reasonable doubt
These stringent evidentiary and procedural requirements create a significant barrier to creditor success. Moreover, foundation assets remain protected even in the event of the founder’s insolvency or bankruptcy.
Nevis law mandates a high degree of confidentiality in the operation of Multiform Foundations. Information regarding founders, board members, beneficiaries, and protectors is not available to the public. The government does not maintain a public registry of these details, enhancing the foundation’s suitability for clients seeking privacy in financial or estate matters.
Nevis Multiform Foundations benefit from favorable tax treatment under certain conditions:
- They are exempt from all forms of local taxation provided they do not hold assets in Nevis and have no resident beneficiaries.
- If the foundation opts to become a Nevis tax resident, it may elect to pay an annual income tax of 1%.
However, restrictions apply. These foundations are generally prohibited from engaging in business with Nevis residents or owning real property in the jurisdiction. They are also barred from engaging in regulated activities such as banking or insurance without the necessary license.
Despite these restrictions, they may maintain relationships with Nevis-based service providers, including attorneys, accountants, and financial institutions, and may hold meetings or bank accounts within the territory.
The Nevis Multiform Foundation offers a legally recognized and adaptable structure suitable for a variety of applications—from estate and wealth planning to asset holding and organizational governance. Its unique ability to assume different legal forms, coupled with robust asset protection features and strong privacy provisions, makes it a versatile vehicle in cross-border planning contexts.
Legal
Country code – KN
Legal basis – Common law
Legal framework – Nevis Multiform Foundation Ordinance, 2004
Regulatory board – Nevis Financial Services Regulatory Commission
Entity – Multiform Foundation.
Each Nevis Foundation has a stated Multiform, which means that the constitution of the Foundation states whether it should be treated as a trust, a corporation, a limited liability company or an ordinary Foundation.
The constitutional format and the stated identity of the Foundation can be changed during its lifetime, thereby allowing for greater flexibility in its use and application
Liability - The properties and resources of a Multiform Foundation constitute an independent patrimony from that of the Subscriber, the Management Board, and Beneficiaries.
Patrimony – There is no minimum amount required for the initial or future subscriptions of a Multiform Foundation.
Subscriber - In order to establish a Multiform Foundation, a person who is referred to as a ‘subscriber’ must transfer assets held in his personal capacity to the foundation. The transfer of assets is known as a ‘subscription’, and such action will be irrevocable unless otherwise stated in the bylaws. Nevis foundations can be formed by individuals or corporate bodies.
Management Board – The business and affairs of a Multiform Foundation must be managed by the management board which must administer the entity’s assets in accordance with its bylaws.
The management board may be formed by the founder or a beneficiary, but must have at least one Nevis resident member.
The management board will have different titles depending on the form that the multiform foundation assumes. If the form of the foundation is a trust, it will be known as a ‘trust foundation’ and the trustees will act as the management board. Likewise, if the multiform is that of a company or a limited liability company, it will be known as a ‘company foundation’.
The management board will be comprised of the company’s directors or the limited liability company’s managers. Where the foundation assumes the form of a partnership, it is referred to as a ‘partnership foundation’, and the managing partner will be appointed to the management board.
Supervisory board - The Ordinance takes a page from trust law by allowing a Multiform Foundation to have a supervisory board, in addition to the management board. The founder can empower another person to oversee the Foundation and the board.
The supervisory board engages in duties which are similar to the protector of a trust since it may exercise limited authority over the management board of a multiform foundation as detailed in the bylaws.
Secretary – The management board is assisted in its administration of the foundation by a secretary.
The secretary may be a natural or legal person but shall not be the sole member of the management board.
Beneficiaries – A Multiform Foundation may be formed to benefit persons; however, there is no requirement to name a beneficiary.
Foundation By-laws - The governing documents of a Multiform Foundation or its ‘bylaws’ allow the structure to have a level of flexibility, as it can choose a law other than the Ordinance to govern either all or a portion of the entity. The Ordinance allows a multiform foundation to be formed for more than one purpose or object, provided that such purpose or object is not offensive to Nevisian law.
Registered Agent – In order to establish a Multiform Foundation, the subscriber must attain the services of a financial services provider licensed by the Government of Nevis to act as Registered Agent of the structure.
The Registered Agent must provide the Registrar of Foundations with the name of the Multiform Foundation, its registered address, its initial multiform, the names and addresses of the management board and secretary and an English language copy of the entity’s bylaws.
Foreign Judgements - Any lawsuit which is brought against a multiform foundation must be brought in the High Court of the Federation.
The Ordinance prohibits the enforcement of any foreign judgment which is obtained against any multiform foundation, its beneficiaries or any persons associated with an interest therein. Before beginning a legal action, the Claimant must post a bond of US$50,000 with the Minister of Finance.
The Ordinance provides that all proceedings, other than criminal matters, will be conducted in the Judge’s chambers and any details will not be published without the consent of the Judge.
Statute of Limitations - Any amounts contributed to a Multiform Foundation will not be considered fraudulent if the addition occurred either before or 1 year after the creditor’s cause of action arose.
If the subscription occurred before the expiration of 1 year before the creditor’s cause of action accrued and the creditor failed to bring the action before the expiration of 6 months since the subscription took place, the subscription will also not be considered fraudulent.
Forced heirship is not recognized under the laws of Nevis, a statute of limitations is in place.
Meetings - At least one annual meeting of the foundation is required by law. The foundation may hold such meetings anywhere.
Re-domiciliation – An entity incorporated outside of Nevis can be transformed into a Nevis Foundation; an existing Nevis entity can be converted into a Nevis Foundation.
Mergers - Two or more entities from outside or within Nevis can merge into a Nevis Multiform Foundation.
Privacy - There is provision for a balance between privacy and transparency. As with all Nevis entities, privacy is guaranteed under St Kitts and Nevis Confidentiality Act 1985. The Foundation can elect to have some or all information available on the public record.
Compliance – All Nevis foundations shall maintain accounting records that can show the board the foundations financial position at any time. Accounting records are not available to the public.
Nevis foundations must file annual returns in prescribed form — contains only information as on Memorandum of Establishment and changes that may have occurred during that year.
A Nevis Multiform foundation must renew its Certificate of Registration annually.
The Ordinance exempts the Multiform Foundation, any associated persons and any possible beneficiaries from the payment of taxes, however, the multiform foundation may advise the Registrar that it intends to become tax-resident and will pay taxes at a maximum rate of one per cent.
Upon the issuance of a tax-residency certificate, a tax return must be filed annually and the multiform foundation will make payments based on the entity’s stated net retained earnings.
- Corporate founder permitted
- Corporate council members permitted
- Protector/Guardian required
- Local regulated person required
- Founder not disclosed in a public registry
- Council members not disclosed in a public registry
- Protector/Guardian not disclosed in a public registry
- Beneficiaries not disclosed in a public registry
- Beneficiaries have right to information
- Merge permitted
- Redomiciliation permitted
- Charitable purposes permitted
- Registered agent required
- Common law Legal basis
- - Initial endowment of assets
- 1 Minimum council members
- 2018 AEOI
Taxes
Multiform Foundations and any related persons and any possible beneficiaries are exempted from taxes.
However, a multiform foundation may elect to become Nevis tax-resident and may pay taxes at a maximum rate of 1%. After the issuance of the tax-residency certificate, a foundation must file a tax return annually and may pay tax based on the entity’s net retained earnings.
- 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
- 0% Offshore Income Tax Rate
- 0% 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)
- 0% Personal Income Tax Rate
- 17% VAT Rate
- 36 Tax Treaties
Country details
Nevis is a Caribbean island located in the Windward Islands, in the Antilles. Along with the island of Saint Kitts, it constitutes the Federation of Saint Christopher and Nevis. An independent sovereignty country, member of the Commonwealth and the CARICOM.
Saint Kitts & Nevis is the smallest country in the Americas, both in size and population. With an area of 261 sq. km and a population of 54,961 inhabitants. Its capital and the most populated city is Basseterre, in Saint Cristopher. Its official language is English. Its legal tender currency is the East Caribbean Dollar (XCD), which has a fixed exchange rate with the dollar at 2.7: 1.
Being an independent member of the Commonwealth of Nations, Saint Kitts and Nevis has a stable political and financial system.
The head of state of the islands is the British monarch, who elects a resident Governor-General to represent him in local affairs.
The prime minister is the leader of the majority party of the House, and the cabinet carries out state affairs. St. Kitts and Nevis have a single legislative chamber, known as the National Assembly. It is made up of fourteen members: eleven elected representatives (three from the island of Nevis) and three senators who are appointed by the Governor-General. Two of the senators are appointed on the recommendation of the Prime Minister, and another with the advice of the opposition leader.
Unlike other countries, the senators do not constitute a separate chamber of the Senate or upper chamber of the parliament, since they sit in the National Assembly, next to the representatives.
Saint Kitts and Nevis was the last place to practice sugar cane monoculture in the Lesser Antilles. But because the sugar industry was increasingly struggling to make a profit, the government decided to eliminate the large-scale sugar cane production and carry out a diversification program for the farming sector and stimulate the development of other sectors of the economy, particularly tourism, export-oriented manufacturing, and offshore financial services. The issue of postage stamps, mainly for philatelic collecting, is also an important source of income for its economy.
Saint Kitts and Nevis also offers a citizenship by investment program. Through a donation to the Sustainable Growth Fund or an investment in Real Estate, a foreigner would become a St Kitts and Nevis citizen and obtain a passport with visa-free or visa-on-arrival access to 136 countries (including South America and European Union).