Anguilla

Find legal, tax and practice information for Anguilla, and search for branches and members in the jurisdiction. If you have any comments on the report please contact [email protected]

*Updated July 2020*

Editorial Board

Harry Wiggin, WEBSTER, The Valley, Anguilla
Pam Webster, WEBSTER, The Valley, Anguilla
Sarah Barrington, WEBSTER, The Valley, Anguilla

Important new developments

New legislation

Limited Liability Company (Amendment) Act, 2019.
Limited Partnership (Amendment) Act, 2019.
International Business (Amendment) Act, 2019.
Companies (Amendment) Act, 2019.
Labour Relations Act, 2019.
Anguilla Economic Residence Act, 2019
Select Anguilla Agency Act, 2019
Excise Tax Act, 2019
Interim Goods Tax Act, 2019
Custom Service Fee Act, 2019
Utility Tokens Exchange Act, 2020
The Anguilla Constitution (Amendment) Order, 2019
Anguilla Status Act, 2020
Special Economic Zones Act, 2020

New residency-by-investment programme

Permits of permanent residence may be granted based on making a significant financial investment into one of three schemes:

Real estate investment

To qualify for residency in Anguilla under the real estate investment option, an applicant must buy or construct real estate on the island valued at a minimum value of USD750,000, including the value of the land on which the home is located. This qualifies a family of up to four for a permit of permanent residence. For additional family members, the minimum value of the property is increased by USD100,000 each. Eligible properties can be homes, villas, condominiums, hotel units or other forms of property; further, the property must not be sold within five years of the date of purchase.

Capital Development Fund

The Capital Development Fund is a special fund that will be established by the Government of Anguilla for the purpose of financing public sector projects in an effort to grow, develop and diversify Anguilla’s economy and fund meaningful social projects. The required minimum investment for this scheme is USD150,000.

Tax residency

The granting of a certificate of tax residency in Anguilla is being explored as an important tangible offering to investors who desire an alternate country of residence for tax-planning purposes. This route will have very specific criteria and rules, which have not yet been outlined.

The Anguilla Constitution

The Anguilla Constitution (Amendment) Order, 2019 amends the Constitution of Anguilla. It changes the title of Chief Minister to Premier and introduces a limit of two consecutive terms for the Premier. It substitutes the term Anguillian for a person who belongs to Anguilla, and revises the categories of people who qualify as Anguillians. It also makes some changes to the qualifications for elected membership of the House of Assembly and the qualifications of voters, and enables the establishment by legislation of an island-wide single electoral district, in addition to the single-member electoral districts into which Anguilla is divided.

Special Economic Zone

As a means of further diversifying the economy, the government of Anguilla is exploring the possibility of developing a special economic zone (SEZ) in Anguilla. Examples of SEZs include science/technology parks, petrochemical zones, logistics parks, airport-based zones, and so on. The government has engaged a particular company who is in the process of conducting a full feasibility assessment of the potential success of the SEZ in Anguilla, to provide a high-level economic impact analysis of the potential benefit of the SEZ to the government of Anguilla, its citizens and Stakeholders and provide a road map to launch the SEZ.

Legal system

Common law.

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Inheritance and succession

Succession

Devolution of the estate of an intestate is in accordance with the Intestates Estates Act whereby the estate passes to the forced heirs. Such does not apply to testator wishes and they are given the freedom to devise all their property as they wish by valid will.

The Wills Act is based on the un-amended English Wills Act of 1837 and governs the formal and essential validity of a will disposing of immovable property in Anguilla, or movable property of a testator domiciled at death in Anguilla.

The provisions of the Probates (Resealing) Act facilitate the resealing of grants issued in the UK by Commonwealth courts or by English courts in foreign countries.

Family law and defined inheritance rules

The English Non-Contentious Probate Rules 1987 apply in Anguilla and provide for applications for grants of probate or letters of administration with respect to assets located in Anguilla.

Probate process

Application for grant made through a solicitor or by applicant in person.
Oath of executor.
Declaration on oath of the value of the estate.
An original or certified copy of the deceased's birth certificate, death certificate and marriage certificate (where necessary).
Affidavit of due execution.
Original will marked by the signatures of the executor and the person before whom sworn.
Land Registry Valuation Certificate together with copy/copies of land register(s).
Order for issue of grant for signature by Registrar.
Two original copies of grant (with copies of will glued on inner leaf).

Mental capacity

A testator must have a sound and disposing mind. Key common-law principles apply so therefore it is not necessary that a testator possesses a high degree of mental capacity, but he must have sufficient intelligence to understand the testamentary act.

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Estate planning

Use of trusts in estate planning

An Anguillian trust is not a separate legal entity. The Trust Act provides that a trust exists where a trustee holds property for the benefit of a beneficiary, whether or not yet ascertained or in existence, and/or for any valid charitable or non-charitable purpose that is not for the benefit only of the trustee. The settlor may also be a trustee, beneficiary or protector of the trust.

There are two main types as follows:

i) Charitable trusts for:

Relief of poverty.
Advancement of education.
Advancement of religion.
Protection of the environment.
Advancement of human rights and fundamental freedoms.
Any other purpose that is beneficial to the community:

Provided the purpose is specific, reasonable and capable of fulfilment;
Provided the purpose is not immoral, unlawful or contrary to public policy; or
Provided the trust provides for the appointment of a protector.

ii) Trusts for non-charitable purposes:

A trust may be created for a commercial or other purpose that is non-charitable if:

The purpose is specific, reasonable and capable of fulfilment;
The purpose is not immoral, unlawful or contrary to public policy; and
The terms of the trust provide for the appointment of a protector who is capable of enforcing the trust and for the appointment of a successor to any such protector.

Non-charitable purpose trusts for commercial or other non-charitable purpose if:

The purpose is specific, reasonable and capable of fulfilment.
The purpose is not immoral, unlawful or contrary to public policy.
The trust provides for the appointment of a protector.

Unit trusts:

For beneficiaries who participate in profits or income from acquisition, holding etc. of property, in addition to specific provision under the Mutual Funds Act.

Use of foundations in estate planning

An Anguillan foundation may be established by one or more natural or legal persons by a declaration of establishment in writing during their lifetime or (by a single founder) by will. An initial property endowment (which can subsequently be increased) of at least USD10,000 is placed under the control of the intended registered agent of the foundation. An Anguilla foundation may be either registered or deposited. If it is deposited rather than registered, it enjoys a higher degree of privacy. The main features of an Anguilla foundation are:

Hybrid: both corporate and trust characteristics.
Assets constitute an estate independent from that of the founder(s).
Assets of the foundation available for distribution to a beneficiary are protected from creditors.
The declaration of establishment or by-laws may provide that any beneficiary shall forfeit any benefit if they challenge any aspect of the foundation, but any beneficiary may enforce the due administration of the foundation.
Although any such claim will constitute a claim in personam against the foundation, it will not constitute a claim in rem against the assets.
Insulated by the corporate veil and, as such, may in many cases be regarded as an even more appropriate solution than a trust for high-net-worth families seeking an estate planning and/or asset protection solution.
Will not be void or voidable on account of a foreign law or judgment.
The most innovative and unique feature of the Anguilla foundation is a provision enabling the founder to specify a dispute resolution procedure to apply to the foundation, so that, for example, a founder from a civil-law jurisdiction could, if they wished, specify that a civil-law type of procedure (or indeed a procedure of their own devising) should apply in a place of their choosing.
Subject to the Anguilla Foundation Act and the declaration of establishment, an Anguilla foundation may be established for any purpose not unlawful, immoral or contrary to public policy.
An Anguilla foundation is administered for the benefit of its beneficiaries and/or purposes in accordance with contractual rather than fiduciary principles.
It is irrevocable and not subject to any perpetuity periods.
Entrepreneurs seeking to provide for the welfare of successive generations can provide continuity for their business after their death, by holding its shares or a separate class of voting shares in an Anguilla foundation.
As an estate-planning vehicle, a foundation is very flexible and is the vehicle of choice in civil-law jurisdictions.

Types of entities

Trusts and foundations.

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Taxation

Income tax system

The interim stabilisation levy was introduced in April 2011. This levy is 3 per cent on the gross salary/wages of all employees earning over XCD2,000 to a maximum of XCD12,000 per month. Employers are required to match 3 per cent of employees’ levy. Self-employed persons are required to pay 6 per cent of their earnings over XCD2,000 to a maximum of XCD12,000 per month.

Personal income tax rates

NOT APPLICABLE

Corporate income tax rates

NOT APPLICABLE

Capital gains tax

NOT APPLICABLE

Non-residents

NOT APPLICABLE

Withholding tax rate (non-treaty)

NOT APPLICABLE

Withholding tax rate (treaty)

NOT APPLICABLE

Taxation at death

There are no death duties payable. The probate administration fee is approximately USD18.

Other taxes

NOT APPLICABLE

Tax treaties

NOT APPLICABLE

Tax information exchange agreements (TIEAs)

Anguilla has signed 17 TIEAs and one double tax convention (www.eoi-tax.org/jurisdictions/AI#agreements).

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Residence and domicile

Special rules on becoming resident

The Immigration and Passport (Amendment) Act 2017 governs permanent residence. The Governor may grant to a person not belonging to Anguilla a permit of permanent residence subject to such conditions as they may think fit. Where a permit of permanent residence is granted to any person, the Governor may, on the application of such person, endorse the permit to include any dependant or dependants of the permit holder.

Special rules on ceasing residence

The Governor may, by order, revoke any permanent residence permit, or any endorsement thereon, on the grounds that any person to whom it relates has, subsequent to the grant of the permit or endorsement thereon, been absent from Anguilla for a continuous period of more than three years; has, in any Country, been imprisoned for a criminal offence; has so conducted themselves that, in the opinion of the Governor, it is not in the public interest that they should continue to enjoy the privileges conferred by the permit; or being the spouse of the person to whom the permit was granted, has ceased to be married to the permit holder by reason of dissolution or annulment of the marriage or is living apart from them under a decree of a competent court or under a deed of separation.

Domicile concept for gifts and inheritance

Under the Aliens Land Holding Regulation Act 2010, where the gift is real property, a beneficiary who is an alien will have to apply for an alien land holding licence. No land in Anguilla shall be held by an unlicensed alien, and any land so held shall be liable to be forfeited to the Crown, but land not exceeding three acres in all may be acquired and held by an unlicensed alien on an annual tenancy or for any lesser interest for the purposes of residence, trade or business. Land acquired by an unlicensed alien under a will or an intestacy shall not be forfeited if, within one year from the death of the testator or intestate, or within such extended time as the Governor may allow, the land is sold or the alien obtains a licence to hold the land.

In addition, the executor must pay a transfer fee of USD18 to have the property transferred to him, and a fee of USD75 for the property to be transferred to the beneficiary, and must obtain an alien’s land holding licence for the beneficiary. The application fee for this licence is USD400.

Special rules on becoming Anguillian

The Anguilla Status Act, 2019 governs Anguillian status. Anguillian status may be acquired in two ways:

(a) automatically for people who satisfy the requirements as specified in the Constitution; and
(b) granted by the Anguillian Status Commission (the Commission) in accordance with the Constitution.

Special rules on withdrawal of Anguillian status

The Commission may withdraw Anguillian status from a person who is convicted of an indictable offence by a court of Anguilla. In deciding whether to withdraw, the Commission may request a report from the Attorney General, the Parole Board, the department responsible for Social Services or any other government or agency. Among other procedures, the Commission shall conduct a hearing of the matter before deciding to withdraw Anguillian status.

Taxation of holdings by non-residents on death and of gifts

Gifts: no.

Death: no.

Reporting/auditing requirements

Annual financial statements for presentation to shareholders.
Winding up/liquidation proceedings.

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Other relevant information

Asset protection laws

Trusts Act
Anguilla Foundation Act
Insurance Act
Limited Liability Company Act

Foreign currency restrictions

YES

Foreign ownership restrictions

NO. Require alien land holding licence for real estate or for a real estate holding company.

AML/due diligence and other requirements and regulatory procedures for advisors

To establish a trust:

Source of funds.
Proof of identity.
Criminal history.
Pending bankruptcy or civil proceedings.

For incorporation:

Proof of funds.
Proof of identity.

To open a bank account:

Proof of residence.
Proof of identity.
Proof of employment or source of funds.

Key resources for further information

Anguilla Finance: www.anguillafinance.com
Anguilla Chamber of Commerce and Industry: www.anguillachamber.com
Anguilla Financial Services Commission: www.fsc.org.ai

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