Nevis

*Updated October 2017*

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• Legal system
• Inheritance and succession
• Estate planning
• Taxation
• Residence and domicile
• Other relevant information

Legal system

Based on English common law, as varied by local legislation and rules of equity.

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Inheritance and succession

Succession

• The Wills (Soldiers and Sailors) Act (CAP 12.16).
• Wills Act (CAP 12.15).
• Intestates Estate Act (CAP 12.06).
• Settled Estates Act (CAP 10.17).
• Unrepresented Estates Act (CAP 5.20).
• Trust Corporation (Probate and Administration) Act (CAP 5.18).
• Administration of Small Estates Act (CAP 5.02).
• Administration of Insolvent Estates Act (CAP 5.01).
• Probates (Resealing) Act (CAP 5.11).

Family law and defined inheritance rules

In the absence of indigenous probate rules and special provisions contained under the respective legislation, s.11 of the Eastern Caribbean Supreme Court (St Christopher & Nevis) Act, CAP 3.11, provides for the reception of the UK Non Contentious Probate Rules 1954. A draft form of non-contentious probate rules for the Eastern Caribbean Supreme Court has been proposed and is being reviewed by the various member states.

Probate

The Wills Act (CAP 12.15) governs the validity and formalities of a will disposing of both real and personal property in the Federation. The Intestates Estates Act (CAP 12.06) governs the administration and distribution of estates of persons dying without leaving a will.

Mental capacity

Lunacy and Mental Treatment Act (CAP 9.14) makes provision for the treatment of persons lacking mental capacity.

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Estate planning

Use of trusts in estate planning

Trust law in Nevis is based on general principles of English trust law, as varied by legislation and rules of equity. International trusts in Nevis are registered under the Nevis International Exempt Trust Ordinance (CAP. 7.03N), as amended (NIETO).

NIETO is comprehensive and includes special provisions that make Nevis a preferred jurisdiction for establishment of asset protection trusts. A few key features of trusts established under the NIETO are:

• They are useful for estate planning, charity, investment holding purposes.
• The proper law may be expressed as the law of Nevis or the law of another jurisdiction, or, if no such law is expressed or intended, the law with which the trust has its closest connection at the time of its creation.
• The trust may be severable so as to facilitate various aspects being governed by different laws.
• A trust is validly settled and enforceable notwithstanding that it may be invalid according to the law of the settlor’s domicile or residence or place of current incorporation, formation or establishment, provided that it meets the common law certainty requirements.
• The rule against perpetuities does not apply.
• The life of a trust is of unlimited duration, unless provided for in its terms.
• Forced heirship rules are specifically excluded.
• Spendthrift and charitable trusts are permitted.
• Non-charitable purpose trusts are permissible.
• Confidentiality.
• Statute of Elizabeth does not apply.
• A bond requirement of XCD270,000 (USD100,000) before a creditor may commence an action.
• One-year limitation from the date the trust was settled or the disposition took place, to commence an action to set aside a trust settlement or disposition.

Save as above, trusts in Nevis may be established under the Trusts Act (CAP 5.19).  By its terms, this act does not apply to trusts registered under NIETO.

Use of foundations in estate planning

Foundations in Nevis may be established under the Nevis Multiform Foundations Ordinance (CAP 7.08N), as amended. A multiform foundation operates as a separate legal entity and is an alternative to a trust. The multiform foundation is managed by a management board on behalf of its beneficiaries and according to a defined constitution.

Under the NMFFO, a foundation may take the form of an ordinary foundation, a trust, a business corporation, a limited liability company or as a partnership. Such form can be changed during the lifetime of the foundation.

A few key features of a multiform foundation established under the NMFFO are:

• They are useful for estate planning, financing, charity, investment holding purposes.
• Confidentiality.
• Structures can be redomiciled and transformed into a Nevis multiform foundation, thereby receiving the various benefits offered.
• A multiform foundation may choose to be governed by foreign law either completely or in part.
• The foundation is tax exempt by default but may elect to become tax-resident of Nevis and pay taxes at a maximum rate of 1 per cent in order to qualify for treaty benefits if desired.
• Any legal action against the foundation must be brought exclusively in Nevis and any proceedings apart from criminal proceedings will be held in private.
• One-year statute of limitation for fraudulent conveyance claims.
• Statute of Elizabeth is excluded from multiform foundations by the governing law.

Types of entities

i) Corporations

International business corporations (IBCs) that do no business in Nevis may be incorporated under the Nevis Business Corporation Ordinance, (CAP. 7.04N) as amended (NBCO). As long as the entity conducts no business in the Federation they are tax exempt. The corporation may elect to become tax-resident in Nevis and pay taxes at a maximum rate of 1 per cent in order to qualify for treaty benefits if desired.

An IBC is a legal entity with separate rights and liabilities, distinct from its shareholders. A few key features of an IBC established under the NBCO are:

• Useful for investment holding purposes.
• No minimum capital required.
• No public record of directors or shareholders.
• No annual returns or other reporting requirements to be publicly filed.
• Shares may be in registered or bearer form with par value denominated in any currency.
• Records may be maintained anywhere in the world.
• Redomiciliation is permitted in and out of Nevis.

ii) Limited liability companies

Limited liability companies (LLCs) may be established under the Nevis Limited Liability Company Ordinance (CAP.7.04N) as amended (NLLCO). An LLC is a legal entity with separate rights and liabilities, distinct from its managers or members. An LLC may be managed either by its members or by its managers appointed by members. The LLC is a flexible wealth planning tool and is an alternative to corporations or partnerships. A few key features of an LLC established under the NLLCO are:

• Useful for investment holding purposes.
• No public record of members or managers.
• No annual returns or other reporting requirements to be publicly filed.
• Records may be maintained anywhere in the world.
• Assets transferred to an LLC become property of the LLC and are no longer under control of the member.
• Creditor protection — a creditor cannot seize a membership interest in an LLC. Creditors are restricted to a charging order that does not create membership rights or give any control over the business.
• Two-year limitation from the date the company was established and a disposition to such company took place, for creditor to commence an action to set aside.
• Redomiciliation is permitted in and out of Nevis.

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Taxation

Income tax system

All Nevis international trusts, business corporations, LLCs, and multiform foundations which do not transact or conduct business in the Federation are not subject to any corporate tax, income tax, withholding tax, stamp tax, asset tax, exchange controls, or other fees or taxes based upon or measured by assets or income originating outside of the Federation or in connection with other activities outside of the Federation or in connection with matters of corporate administration which may occur in the Federation.

Maintaining bank accounts in Nevis, holding board meetings in Nevis, maintaining corporate or financial records in Nevis, maintaining an administrative or managerial office in Nevis with respect to assets and activities outside of Nevis, maintaining a registered agent in Nevis, investing in stocks or interests of Nevis corporations or limited liability companies or being a partner in a Nevis partnership or a beneficiary of a Nevis trust or estate, or acquiring real property in certain local industrial or tourist facilities in Nevis approved by government will not constitute doing business in Nevis.


Save as set out above, income tax is levied pursuant to the Income Tax Act (CAP 20.22).

Personal income tax rates

No personal income tax in Nevis. Social security contributions are payable.

Corporate income tax rates

Corporate entities that transact or conduct business in the Federation are subject to taxation: 33 per cent for corporations that conduct business in the Federation.

Capital gains tax

Zero capital gains tax in Nevis, save and except on assets located in the Federation and of which are sold within one year of acquisition, which are taxed at 20 per cent.

Non-residents taxable on

Not Applicable.

Withholding tax rate (non-treaty)

Save as set out above, withholding tax in Nevis is 10 per cent and is to be deducted by individuals and ordinary companies that conduct business in Nevis, and are remitting payments to persons outside of the Federation from profits, administration, management or head office expenses, technical service fees, accounting and audit expenses, royalties, non-life insurance premiums and rent.

Withholding tax rate (treaty)

See above.

Taxation at death

There is no estate duty.

Other taxes

There is no net worth tax, gift tax, or estate duty. A system of value-added tax (VAT) came into force on 1 November 2010. Standard VAT is 17 per cent.

Tax treaties

The Federation, as of August 2017, has entered into 13 double tax conventions/agreements (DTCs) (www.eoi-tax.org/jurisdictions/KN#agreements).

Tax information exchange agreements (TIEAs)

The Federation, as of August 2017, has signed 24 TIEAs. Together with the 13 DTCs and the FATCA IGA and the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, the Federation has a total of 39 exchange of information mechanisms (www.eoi-tax.org/jurisdictions/KN#agreements).

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Residence and domicile

Special rules on becoming resident

Yes. An IBC and an LLC may transfer its domicile to Nevis pursuant to the provisions of the respective governing legislation. There are special rules applicable to residency of an individual, pursuant to the provisions of the Immigration Act (CAP 6.02).

Pursuant to the provisions of the constitution of the Federation and the Citizenship Act (CAP 1.05), a foreign national upon application, is also afforded an opportunity to obtain citizenship through marriage, descent, residency, registration and investment.

Special rules on ceasing residence

An IBC and an LLC may transfer its domicile from Nevis pursuant to the provisions of the respective governing legislation.

Domicile concept for gifts and inheritance

Not applicable.

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

• Gifts: not applicable.
• Death: not applicable. 

Reporting/auditing requirements

For corporate entities that conduct and transact business in the Federation.

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Other relevant information

Asset protection laws

Yes.

Confidentiality laws

Yes.

Foreign currency restrictions

No.

Foreign ownership restrictions

Yes.

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

• To establish a trust: service providers must be licensed. A service provider must collect enough KYC/due diligence information in order to inter alia, risk-rate its client and assess the risk of criminal money laundering and terrorism funding. The service provider is to ensure that the registration of the trust would not be undesirable or risky to the jurisdiction. The service provider must have enough information and documentation to make an informed decision on its client and the structure (eg the identity of parties and known beneficial objects).
• For incorporation: the requirement for collection of information as indicated above for a trust is applicable. The service provider must have enough information and documentation to make an informed decision on its client and the entity (eg the identity of parties, including those who have ultimate control and beneficial ownership).
• To open a bank account: the requirement for collection of information as indicated above for a trust is applicable. The respective banking institutions have internal checklists requiring inter alia, original certified documents. Funds will not be accepted until due diligence is completed. Identity verification documents must be in place and source of funds established.

Other points of interest

Nevis is a 36 square-mile island, located in the Caribbean, 250 miles south-east of Puerto Rico and lies two miles south-east of its sister island, St Kitts. Together, they form the twin island Federation of St Kitts and Nevis (also referred to as the Federation of St Christopher and Nevis). Nevis is noted by its circular shape, and is easily identified by Nevis Peak – a 3,232ft cloud-capped mountain rising in its centre, and flanked by the lower Round Hill (1,014ft) in the north and by Saddle Hill (1,850ft) in the south.

For details on St Kitts se the separate St Kitts factfile.

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STEP branches in Nevis

There is one STEP branch in Nevis, which was launched in 2010 to provide local access to a global network of industry professionals and to enhance the development of individuals working in the trust and estates industry. STEP Nevis forms part of STEP's Caribbean and Latin America region.

• STEP Nevis

Firms in Nevis

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Members in Nevis

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