Tax Haven Nevis

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Tax haven Nevis has a strong economy. The official currency is the Eastern Caribbean Dollar (XCD), which is also used by other countries within the English speaking Caribbean, particularly the Organisation of Eastern Caribbean States (OECS). The Eastern Caribbean Dollar is pegged to the U.S dollar and has an exchange rate of 1 USD to 2.7169 XCD. The stability of the XCD has been maintained for about 30 years. Tax haven Nevis main economic activity is tourism, followed by financial services. Tax haven Nevis’ financial sector was established in 1984, from which time a number of legislative measures were implemented to develop the industry.

Country Overview

Tax haven Nevis is the sister island of St. Kitts and together are known as the Federation of St. Kitts and Nevis.

Nevis is situated in the Leeward Islands and is divided into five major parishes, namely, St. George Gingerland, St. James Windward, St. John Figtree, St. Thomas Lowland and St. Paul Charlestown. Tax haven Nevis is graced with tropical rain forests, white sand beaches and scenic views. The climate is tropical with an average air temperature of 79 degrees Fahrenheit and humidity of about 71.5%.

Nevis tax haven is a progressive country and has a number of laws established for ensuring that businesses are granted sufficient incentives for investing. Some of these incentives include tax holidays and exemptions on import duties on parts, raw materials and production machinery, which are given under the Fiscal Incentives Act to businesses that qualify, tax exemptions from capital gains tax, succession tax, gift tax, estate tax and withholding tax on dividends, interest and payments to international business companies, international trusts, limited liability companies (llc), multiform foundations and other offshore vehicles. Nevisians are not subject to personal income tax, but companies are to pay corporate tax on benefits.

Tax haven St. Kitts and Nevis has many banks, including local and regional bank branches and 3 international banks. Three of the region’s most important financial and regulatory banking institutions namely the Eastern Caribbean Home Mortgage Bank (ECHMB), the Eastern Caribbean Central Bank (ECCB) and the Eastern Caribbean Securities Exchange (ECSE) are located in Nevis.

Nevis Fiscal Incentives and Advantages

Tax haven Nevis has in place a suite of fiscal benefits which encourage entrepreneurship by international investors. Incentives in real estate, financial services, manufacturing and tourism promote Nevis as a small but appealing locale for incorporating offshore and setting up businesses. Here is a list of some of the advantages that Nevis offers as a tax haven:

  • Zero tax on income
  • Zero tax on capital gains
  • Zero tax on corporate tax
  • Zero tax on gifts, inheritance and succession
  • Business friendly environment
  • Skilled and educated work force
  • Democratic society
  • Agile and supportive government
  • Zero exchange controls

Nevis Offshore Legislative Framework

Tax haven Nevis gives a wide range of enabling legislation which makes possible the creation and registration of offshore entities and companies. The offshore legislative framework of tax haven Nevis enables efficient tax and estate planning, wealth management, asset protection and tax minimization. Offshore services legislation include the

  • Nevis Business Corporation Ordinance (1847, amended 2002)
  • Nevis International Exempt Trust Ordinance (1994, amended 2002)
  • Nevis International Insurance Ordinance (2004, amended in 2006)
  • Nevis Limited Liability Companies Ordinance (2008)
  • Nevis Multiform Foundations Ordinance (2004)
  • Nevis Offshore Banking Ordinance (1996 as amended)

Nevis Offshore Services

Offshore service providers in tax haven Nevis are required to be licensed and operate compliant with the Financial Services Order while legal entities such as offshore banks and insurance companies are required to meet stipulated minimum financial resources. Offshore services available in Nevis present the islands as a competitive tax haven. These are:

  • Multiform Foundations
  • Business Corporations
  • Limited Liability Companies (LLC)
  • Mutual Funds
  • International Exempt Trust business
  • Captives
  • Offshore banks
  • Reinsurance business

Nevis Financial Services Commission

In 2000, a Financial Services Commission was appointed to regulate and supervise local and offshore financial services within St. Kitts and Nevis. The Commission is made up of five members who are trained in the relevant fields as it relates to the commission’s functions. These members include a commissioner appointed by the Minister, a commissioner appointed by the Minister upon the approval of the Premier, a commissioner appointed by the Minister upon the approval of the ECCB’s (Eastern Caribbean Central Bank) Governor, two regulators – one each for St. Kitts and Nevis, and a Chairperson.

The commission is assigned to advise and guide financial regulators, implement the necessary measures for expediting, enforcing and developing regulations, supervising financial activities and receive reports relating to financial institutions.

Nevis Financial Services Intelligence Unit

The Financial Services Intelligence Unit (FSIU) is set up to disseminate information on transactions as suspicious, communicate with international money laundering intelligence agencies, collect, analyze, and act on receipt of information regarding suspicious transactions, build a data base of standards for detecting money laundering, maintain record of all reports for at least five years. The FSIU may also order the disclosure of information in accordance with the Proceeds of Crime Act, 2000. The FSIU consists of a representative from the Ministry of Finance and the Legal Department, a Director appointed by the Minister, police officers and other personnel as appointed by the Director of the FSIU.

In 2008, the Nevis Investment Promotion Agency Ordinance was established for the purpose of devising and implementing a marketing and public relations program for the promotion of Nevis as an investment hub, set ways in which to directly target potential investors, the provision of after care services for investors in order to give assistance in meeting administrative requirements subsequent to the approval of their investment.

Other responsibilities of the agency include;

  • Issue investment proposals
  • Provide both domestic and foreign investors with the necessary assistance and information
  • Undertake activities to foster linkages between local and foreign investors, in coordination with agencies or departments that support small business
  • Liaise with government agencies, departments and authorities to identify and secure suitable land that may be required by investors and prospective investors to implement projects
  • Restrictions on exchange controls were removed by the Exchange Control (Suspension of Provisions) Order No. 12 of 2004. Nevertheless, individuals intending to transfer sums equivalent to or in excess of EC$250,000 or USD 92,000 overseas are required to fill in an ‘E Form’ which must be approved by the Ministry of Finance.
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