St Kitts

*Updated July 2018*

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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).
• Administrationof 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, s11 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 process

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 St Kitts is based on general principles of English trust law, as varied by legislation and rules of equity. Trusts in St Kitts are formed under the Trusts Act (CAP 5.19). By its terms, the Act does not apply to trusts formed under the Nevis International Exempt Trust Ordinance (CAP. 7.03N) (NIETO), as amended. A few key features of a trust established under the Trusts Act are:

• Useful for estate planning, charity, investment holding purposes.
• The proper law may be expressed by the terms of the trust, or that implied from the terms of the trust, or that which the trust at the time it was created had the closest connection.
• The trust may be severable so as to facilitate various aspects being governed by different laws.
• The life of a trust is 100 years except for trust’s established for charitable purposes.
• Common, unit, spendthrift and charitable trusts are permitted.
• Annual statement to be filed.
• Trusts are not themselves subject for assessment to any tax in the Federation. The beneficiaries of the trust are exempt from all income, capital gains and withholding taxes which may arise out of their interest in the trust, provided that the trustees of the trust effect transactions exclusively with persons who are not resident in the Federation.

Use of foundations in estate planning

Foundations in St Kitts may be established under the St Kitts Foundation Act (CAP 21.19). A foundation operates as a separate and independent legal entity in its own right, capable of suing and being sued in its own name. It is an alternative to a trust. A few key features of a foundation established under the St Kitts Foundation Act are:

• Useful for estate planning, financing, charity, investment holding purposes.
• Structures can be continued as a St Kitts foundation if not prohibited under the laws of the formation jurisdiction, thereby receiving the various benefits offered.
• Forced heirship rules are excluded.
• Annual return to be filed.
• A foundation shall not be subject for assessment or liable to any tax in the Federation. The beneficiaries of the foundation are exempt from all income, capital gains and withholding taxes which may arise out of their interest in the foundation, provided that the foundation effect transactions exclusively with persons who are not resident in the Federation.

Types of entities

Companies: a company is a legal entity with separate rights and liabilities, distinct from its shareholders. Companies formed in St Kitts may be incorporated under the St Kitts Companies Act (CAP 21.03). They may be private or public, ordinary or exempt, and can be limited by guarantee or by shares. A company which does not transact or conduct business in the Federation is tax exempt. A company which transacts and conducts business in the Federation is liable to tax. A few key features of a corporation established under the St Kitts Companies Act are:

• Useful for investment holding purposes.
• May be formed for any lawful purpose.
• Doctrine of ultra vires expressly abolished.
• Annual returns to be filed.
• Companies are exempt from all taxes provided they conduct business exclusively with persons who are not resident in the Federation.
• A company is called an exempt company if it qualifies for the tax exemption. An ordinary company is a company which is not an exempt company and is liable for taxes.
• No estate, inheritance, succession or gift tax, rate, duty, levy or other charge is payable by any person with regard to any property owned by, or securities issued or created by or in respect of, an exempt company.
• No stamp duty or other tax is payable by any person with regard to any transaction in any securities issued or created by or in respect of an exempt company.

Limited partnerships: limited partnerships may be established under the Limited Partnerships Act (CAP 21.12). Any two or more persons can form a limited partnership, including a body corporate – which may be a general or a limited partner. A partnership is an alternative to a corporation. A few key features of a limited partnership established under the Limited Partnerships Act are:

• Useful for investment holding purposes.
• Legal proceedings by or against a limited partnership may only be instituted by or against any one or more of the general partners. No limited partner may be a party to or named in such proceedings.
• Unless the partnership agreement otherwise provides, it is not necessary for the general partners of a limited partnership to appoint an auditor to audit their accounts in respect of the limited partnership.
• Annual returns to be filed.
• A limited partnership is not itself a subject for assessment to any tax in the Federation. The partners of a limited partnership are exempt from all income, capital gains and withholding taxes which may arise out of their interest in the limited partnership if the general partners of the limited partnership are in respect of it effecting transactions exclusively with persons who are not resident in the Federation.
• A limited partnership is called an exempt limited partnership if its partners qualify for the tax exemption. An ordinary limited partnership is a limited partnership which is not an exempt limited partnership.
• No estate, inheritance, succession or gift tax, rate, duty, levy or other charge is payable by any person with regard to any property owned by, or securities issued or created in respect of, an exempt limited partnership.
• No stamp duties are payable by any person with regard to any transaction in securities issued or created in respect of an exempt limited partnership.

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Taxation

Income tax system

Corporate entities that transact or conduct business in the Federation are subject to taxation. 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 St Kitts. Social security contributions are payable.

Corporate income tax rates

Corporate income tax rate is 33 per cent for corporations that conduct business in St Kitts.

Capital gains tax

Zero capital gains tax in St Kitts, 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 St Kitts is 10 per cent and is to be deducted by individuals and ordinary companies that conduct business in St Kitts, 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. The standard VAT rate 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

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. A company incorporated outside of the Federation may opt to redomicile to St Kitts pursuant to the provisions of the St Kitts Companies Act.

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

None.

Domicile concept for gifts and inheritance

Not applicable.

Taxation of holdings by non-residents on 

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

Reporting/auditing requirements

Yes: 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 know-your-client/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 (e.g. 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 (e.g. 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

St Kitts is a 69 square-mile island, located in the Caribbean, roughly 1,200 miles from Miami and two miles from its sister island, Nevis. Together, they form the twin island Federation of St Kitts and Nevis (also referred to as the Federation of St. Christopher and Nevis). At the centre of St Kitts stands the cloud-fringed peak of Mount Liamuiga. The mountain range in St Kitts rises to a height of 3,792 ft.

For details on Nevis see separate factfile.

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STEP branches in St Kitts

There is no STEP branch in St Kitts, but members are served by the nearby Nevis branch, which forms part of STEP's Caribbean and Latin America region.

• STEP Nevis

Firms in St Kitts

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Members in St Kitts

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