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Financial Institution Crisis Management: Nevis Proves Resilience in Face of Global Pressures

As financial institutions around the world grapple with the challenges of crisis management, one tiny island nation is proving that even the smallest jurisdictions can adapt and thrive.

Located in the Eastern Caribbean, Nevis has a reputation for being a modern and forward-thinking financial centre. Its unique history of legislative and fiscal independence has allowed it to develop practical solutions to meet the needs of an increasingly mobile and international client base.

Recent Developments: A New Era of Tax Efficiency

In recent years, the Government of Nevis has been exploring ways to make its International Business Companies (IBCs) and Limited Liability Companies (LLCs) operate tax-efficiently. This move is seen as a major step forward in attracting new businesses and investors to the island.

Under the Grandfathering Act

  • Companies that were incorporated prior to 2019 and do not engage in business within the Federation of Nevis are exempt from corporate tax until June 2021.
  • IBCs and LLCs incorporated after January 2019 are subject to federal corporate tax.

What Are the Opportunities in Nevis?

Despite the changes, Nevis remains an attractive destination for individuals seeking confidentiality and privacy. With no government or public corporate registers, companies can be established and managed efficiently using a trusted Corporate Service Provider like Dixcart.

Benefits of Establishing a Company in Nevis

  • Individuals enjoy exemption from income tax and capital gains tax in Nevis.
  • The jurisdiction offers a range of opportunities to use its structures in a tax-neutral and confidential manner.
  • Private Trustee Companies (PTCs) remain popular, offering individuals and families the ability to manage their assets and protect their privacy.
  • Limited Liability Companies can operate as unlimited partners, offering significant tax benefits.
  • Multi-Form Foundations (MFFs) provide flexibility and commerciality while offering asset protection rules.
  • Family Foundations offer a range of benefits, including support for education, succession planning, and asset protection.

The jurisdiction remains attractive for families seeking to establish trusts, offering benefits such as no forced heirship, unlimited duration, and foreign judgement enforcement. Separate trusts can also be combined or divided, providing flexibility in trust planning.

Citizenship by Investment

Dixcart Nevis is an experienced provider of Citizenship by Investment services, helping families gain St Kitts & Nevis citizenship through real estate or a one-off donation. With no personal income or capital taxes for individuals resident on the island, this route offers significant tax benefits.

Conclusion

Nevis has proven itself to be a resilient and adaptable financial institution in the face of global pressures. Its unique history and forward-thinking approach have allowed it to develop practical solutions that meet the needs of an increasingly mobile and international client base. As the world navigates the challenges of crisis management, Nevis is well-positioned to continue thriving as a major player in the global financial landscape.