British Virgin Islands:
A Brief Look At Property Holding In The British Virgin Islands
29 April 2015
O'Neal Webster
To print this article, all you need is to be registered or login on Mondaq.com.
The acquisition, holding and transfer of BVI property, is
regulated by the Registered Land Act, and for persons who are not
citizens, also by the Non Belonger Landholding Regulation Act. The
sale, gift, or inheritance of property triggers statutory
licensing, filing, and stamp tax requirements. Accordingly, before
you acquire property, it is best to plan ahead and take legal
advice on how best to structure your property holdings. The basic
advantages and other considerations relating to the most common
options are set out below.
STRUCTURE |
TYPE |
CONSIDERATIONS |
BENEFITS |
Trust |
Discretionary
(BVI or non BVI) |
Unless the settlor is also the
Trustee, the Settlor is excluded from decision making |
- Avoids Probate
- Minimal formation fees
- No annual Fees
- Letter of Wishes may be created to inform Trustee
decisions
|
VISTA
(Trust of the shares of a BVI company) |
- Requires formation of BVI Company
- Modest Formation Fees
- Modest Annual fee obligations to maintain company
|
- Avoids Probate
- Settlor can be company director and retain active control over
property
|
Company |
BVI |
- Modest BVI formation Fees
- Modest Annual fee obligations to maintain BVI company
|
- Avoids Probate
- Simple fast incorporation
- Tax Exemptions for close transfers (i.e. to spouse, children or
trusts benefiting spouse and/or children)
|
Non-BVI |
Additional time for processing NBLH
application |
Avoids Probate |
BVI company with Non-BVI company/
trust/ LLC as sole director and shareholder |
- Requires 2 entity formations
- Modest BVI formation Fees
- Modest Annual fee obligations to maintain BVI company
- Non-BVI entity may have further filing/tax burdens
|
- Avoids Probate
- Transfer of Non-BVI company interests has no statutory impact/
requirements
|
Individual |
Sole Proprietor |
- Triggers statutory requirements for any change in
ownership
- Tax reduction for change from sole proprietor to other form of
ownership provided the beneficial ownership remains the same
|
- Tax exemptions for close transfers (spouse, children etc.)
|
Joint Tenancy |
- Not suitable outside of close relations (spouse, children
etc)
- Extinguishes the interest of owners who pre-decease other joint
tenant(s)
- Can be converted to Tenancy-in-common unilaterally by either
tenant leading to estate planning issues
|
Avoids Probate until the death of the
last survivor |
Tenancy in Common |
Requires Probate of each owner's
share |
Each owner can dispose of their
interest separately subject to statutory requirements |
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
POPULAR ARTICLES ON: Wealth Management from British Virgin Islands
Global Gender Wealth Equity
WTW
Throughout the Middle East and Africa, there are significant variations in the Wealth Equity Indices by country. Women in this region accumulate less wealth than men at the end of their careers for many reasons.