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Nevis

Multiform Foundation

A Multiform Foundation formed under the Nevis Multiform Foundations Ordinance, 2004, is a highly flexible entity, of which its Memorandum of Establishment states whether it should be treated as a Company Foundation, Trust Foundation, Partnership Foundation or as an ordinary Nevis Foundation.

A Nevis Multiform Foundation is not restricted to function only as a foundation in that it is capable of accommodating and catering to the needs of its subscriber (founder) by being able to fulfill any one of the aforementioned roles, which may be changed to another at any time in the Foundation's life.

The assets of a Nevis Foundation take on a separate legal entity from the personal assets of the subscriber, the management board or the beneficiaries. These assets endowed to the Nevis Foundation has no specific owner other than the Foundation.

A Nevis Multiform foundation can be used either for philanthropic or charitable, as well as for inheritance and estate planning and asset protection. Additionally, the Nevis Foundation can also be used for confidentiality purposes, to maintain corporate control under a veil of privacy.

It can own property in any form, conduct business, trade, and any other commercial activity.

Although it may not engage in habitual profit-making commercial activities, it may carry out commercial activities from time to time, as long as the profits of those activities are used for the objectives of the Foundation.

It can be a powerful holding instrument in which can be held various asset classes and investments: real property, stocks, bonds, bank accounts, deposits, investment holdings, mutual funds, money markets, art collections, pension funds, among others.

A Multiform Foundation may be formed to benefit persons, however, there is no requirement to name a beneficiary.

It can be revocable or irrevocable and it can exist for life, as the rule against perpetuities does not apply.

The Nevis Multiform Foundation Ordinance, 2004, permits foreign foundations and foreign and domestic companies to continue, transfer, consolidate or merge into a multiform foundation.

In addition, Nevis has one of the most robust legislation in terms of asset protection. An asset transfer can only be set aside by factual evidence of actual fraud.

The general statute of limitations in Nevis for fraudulent transfers is two years (in some cases one year).

Nevis does not recognize a foreign judgment. The creditor must file a new claim in Nevis and prove the actual fraud in the new case there. Furthermore, the creditor must hire a lawyer licensed in Nevis, and post a cash bond to file the lawsuit.

Once the new litigation is filed in Nevis, the creditor must prove the actual fraud by a “beyond a reasonable doubt” standard, stating that there is a probability of more than 90 percent that his allegation is true.

The foundation cannot be void or voidable in the event of the subscriber’s bankruptcy, insolvency, or liquidation.

Furthermore, Nevis boasts strict privacy laws against disclosure of the affairs of the foundation and details of subscribers, board members, officers or beneficiaries are not available to the public.

Regarding taxation, a Multiform foundation is exempt from all form of local taxes, provided that no assets are held in the jurisdiction and no beneficiaries are residents in Saint Kitts and Nevis.

However, Nevis Multiform Foundations may elect to be tax resident in Nevis and pay an annual income tax of 1%.

Nevis Multiform foundations may be restricted to do business with residents in Nevis or own real properties in the jurisdiction. They are also prohibited to carry out banking or insurance activities without the proper license.

However, it may have professional relationship with local lawyers, advisors and accountants, it may hold meetings and maintain bank accounts in Nevis.

The subscriber is who establish the foundation, its rules and transfer his or her assets, the subscriber may be also the beneficiary or a management board member.

The subscriber can establish a foundation upon his or her death by will.

The management board members are who administer the foundation assets in accordance with its bylaws. For instance, if the the multiform foundation takes the form of a trust, the management board will act as trustees, if it takes the form of a corporation, the board will act as a board of directors.  

At least one member of the management board must be a Nevis resident.

A secretary will assist on the administration of the foundation, who may not be the sole member of the management board.

The founder or subscriber may appoint a supervisory board, with duties which are similar to the protector of a trust since it must ensure compliance by the foundation and the management board with the provisions of the foundation bylaws and supervise the management and conduct of the foundation by the management board members.

The subscriber/s, management board members, beneficiaries or protector/s may be natural persons or corporations of any nationality.

All in all, a Nevis Multiform foundation is a flexible and powerful vehicle for asset protection, estate and succession planning, wealth management, as well as a holding company.

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% 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

Saint Kitts and Nevis
XCD
Basseterre
North America
e n - K N
51134

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).

Tax treaties

Country Type Date Signed
Canada TIEA 2010-06-14
Guernsey TIEA 2012-02-07
Saint Lucia DTC  1994-07-06
Sint Maarten TIEA 2009-09-11
Portugal TIEA 2010-07-29
India TIEA 2014-11-13
Norway TIEA 2010-03-24
Saint Vincent and the Grenadines DTC  1994-07-06
Guyana DTC  1994-07-06
San Marino DTC  2010-04-20
South Africa TIEA 2015-04-07
Sweden TIEA 2010-03-24
Switzerland DTC  1963-08-26
Denmark TIEA 2009-09-02
Trinidad and Tobago DTC  1994-07-06
Antigua and Barbuda DTC  1994-07-06
Barbados DTC  1994-07-06
Grenada DTC  1994-07-06
Curaçao TIEA 2009-09-11
Jamaica DTC  1994-07-06
Germany TIEA 2010-10-13
Faroe Islands TIEA 2010-03-24
Dominica DTC  1994-07-06
Greenland TIEA 2010-03-24
Finland TIEA 2010-03-24
France TIEA 2010-04-01
Iceland TIEA 2010-03-24
Netherlands TIEA 2009-09-02
New Zealand TIEA 2009-11-24
Belize DTC  1994-07-06
Aruba TIEA 2009-09-11
Australia TIEA 2010-03-05
Belgium TIEA 2009-12-18
United Kingdom TIEA 2010-01-18
Liechtenstein TIEA 2009-12-11
Monaco DTC  2009-09-17

Tax treaties Map

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Services

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