Is Nevis a Tax Haven?

What is a Tax Haven?

A "tax haven" is a place where assets are protected high income taxes and currency controls. Tax havens often have a negative connotation because they are associated with illegal activities but they are also used by many who are looking for legitimate international tax planning opportunities.

Jurisdictions know as tax havens recognize the desires of individuals to safeguard their assets, and to limit the high tax burden they are exposed to in their country of residence.

Common Reasons to Seek Out a Tax Haven

The most common reasons why individuals and corporations utilize tax havens include:

• To minimize the reporting and paying of income tax on their earnings, interest, dividends, and investments.
• To minimize high capital gains taxes and reporting requirements.
• To avoid inheritance taxes, estate taxes, executor's fees, and probate fees.
• To protect assets from creditors and the initiation of civil litigation.
• To prevent the loss of assets as a result of divorce or separation.
• To prevent protect private documents, corporate ownership and knowledge of financial transactions from third parties or government agencies.
• To centralize assets held and managed in several jurisdictions around the world.
• To earn tax free income from the operation of a business, the licensing of trademarks, patents, royalties, software licenses, and other rights.

Why Nevis is a Good Choice

Nevis offers all of these protections and benefits for an individual or business creating a Nevis offshore corporation or LLC.

Nevis' Confidentiality Relationship Act of 1985 prohibits the unauthorized disclosure of information about a client's assets or business to a third party, punishable by a prison sentence. The confidentiality law does not apply to criminal activities such as illegal drugs, theft, or fraud.

While not well known outside offshore financial circles, Nevis offers one of the best tax-free asset protection jurisdictions in the world. Nevis has asset protection friendly laws allowing the creation of protected trusts, International Business Corporations and limited liability companies simply and inexpensively. The laws are written in English and are based on British and American legal concepts. Nevis is easily accessible from the US and Europe and has a sophisticated communication infrastructure that supports convenient online banking and debit card transactions tied directly to your bank account from anywhere in the world.

While Nevis has an income tax offshore companies doing business outside the country are exempt from taxation. Nevis has no capital gains taxes or estate taxes and no exchange controls.

Nevis has no double-taxation agreement with the US or Canada although double-taxation agreements currently exist with Denmark, New Zealand, Norway, Sweden, Switzerland, and the United Kingdom.

If you have debt free assets and are exploring ways to protect and preserve those assets you should consider Nevis as a possible location for an offshore corporation, limited liability corporation or trust to hold those assets.

Many professionals prefer to use the Nevis limited liability corporation. The limited liability corporation offers excellent for asset protection, limiting any liability the owners have, and providing 100% anonymity for the owners. The owners of Nevis limited liability corporations do not appear in any public registry or database.

Seth Embry is an Australian born international investing specialist and globe trotter who shares his expertise on Nevis Tax Haven and PT style living with members of the Q Wealth Report. Visit the Q website for more information on Offshore Investing and sign up to their free Q Bytes newsletter.