A tax-exempt trust in Nevis offers you many benefits, not just taxation, and we can help you with setting one up. What other opportunities does it provide? You can establish a traditional offshore entity in Nevis, specifically a limited liability company (LLC). consider citizenship, and generally secure your assets, with high levels of protection and privacy.
You can also incorporate an offshore international business company (IBC) in Nevis. Such entities are commonly established when an offshore company has multiple shareholders. Nevis has also enacted the Nevis International Exempt Trust Ordinance (NIETO), under which only an international business company (IBC) in Nevis can act as a trustee for a tax-exempt trust in Nevis.
Here, we will discuss the advantages of a tax-exempt trust in Nevis. This option is particularly appealing, not for offshore businesses themselves, but for their owners. A tax-exempt foundation in Nevis offers an efficient, legal, reliable, and secure solution for those seeking asset protection through trusts without incurring the high costs associated with registration and ongoing maintenance of the structure. We will explore why an offshore company in Nevis is the optimal choice for this purpose.
Tax-Exempt Trusts in Nevis – Key Benefits
The island of Nevis is governed by legislation that offers modern trust solutions with preferential methods. Trusts in Nevis are regulated by the International Exempt Trust Ordinance of 1994. However, unlike many other offshore jurisdictions, registering a tax-exempt trust in Nevis is quite straightforward.
To register an offshore trust in Nevis, you only need to submit the following to the Register:
- Name of the Trust (it is advisable to prepare several options)
- Name of the Trustee
- The legal address of the tax-exempt trust in Nevis (which may be the address of the Trustee/Registered Agent).
The advantages of an offshore trust in Nevis (assuming registration complies with all rules) include:
- A Nevis trust is subject exclusively to the jurisdiction of the Island of Nevis. When filing a lawsuit against a Nevis trust, the claimant must post a bond of $25,000 with the Treasury Department, which deters frivolous claims.
- Forced heirship rules are generally excluded.
- No taxes
- The tax-exempt Nevis offshore trust does not require shareholders
- Infinite validity period
- Strong privacy laws. Third parties can access no information about the Trust without a court order, and it is not available in the registry.
Free consultations of our experts on the selection of the optimal jurisdiction for specific tasks:
Registration of an Offshore Tax-Exempt Trust in Nevis
As mentioned, the process is straightforward, and the registration cost is quite affordable, especially compared to other jurisdictions. However, this does not imply that you can navigate all administrative hurdles independently. If the foundation is registered without adhering to all legal requirements or if the preliminary planning stage is overlooked, you may encounter unforeseen challenges.
Minimum requirements to register a tax-exempt offshore trust in Nevis (qualifying conditions):
- The state does not register the Trust Deed and remains an exclusively private document. The Trust Deed should clearly outline the structure, purpose, and objectives of the Trust.
- Competent selection of the type of offshore trust in Nevis (mandatory before registration): Charitable Trust, Non-Charitable Trust, Spendthrift or Protective Trust, Discretionary Trust, or Asset Protection Trust.
- In the Trust, at least one of the Trustees must be a licensed trust company or a Nevis IBC (we can assist you with the registration).
- Beneficial owners and settlors cannot be residents of Nevis. The property owned by the Trust cannot be located on the islands of Saint Kitts and Nevis.
- The Protector is authorized to appoint and remove trustees to safeguard the interests of the beneficial owners and to ensure the Trust’s purpose is fulfilled. The Protector may be the settlor, beneficial owner, or trustee.
Comparison of the multiform foundation and the tax-exempt offshore trust in Nevis:
| Multiform Foundation in Nevis | Nevis Offshore Trust |
| Full-fledged legal entity | No legal entity status |
| May use/own property in Nevis | Only assets and rights of beneficial owners prescribed by the deed |
| Subordinate to the current legislation | Subject to the deed and law |
| No beneficial owners of the foundation are needed | Beneficial owners of the Trust are required |
| Protector | Protector |
| The rights of the foundation’s beneficial owners are established | The rights of the beneficial owners of the Trust in Nevis are limited |
| The Board of Directors is not personally liable for the assets | The Trustee is liable for the trust assets |
| Changes required by Nevis law | Restricted amendments or modifications are allowed |
| Wide opportunities under the current laws of Nevis | Powers under the Nevis Tax-Exempt Offshore Trust Deed |
| Unlimited validity period | Infinite validity period |
| Revocable | Revocable |
The Cost of a Tax-Exempt Offshore Trust Registration in Nevis
As previously mentioned, the cost of registering an offshore trust is quite affordable. However, it is important to understand that structures primarily aimed at asset protection and diversification are distinct from companies conducting offshore business. While the registration of a “simple” offshore company is largely a standard procedure, establishing a trust—particularly a tax-exempt trust in Nevis—is a bespoke project tailored to specific requirements.
Here is what you typically pay for during trust registration:
- Registration fee
- Due Diligence fee
- Registry filing fee
- Registered Agent and Office fee
- Gift statement or transfer placing assets on the balance sheet
- Services of our private trustee company to serve as trustee and carry out the documentation-keeping functions of a trustee, with all standard due memorandum and record-keeping
- Drafting of the Trust deed by a specialist Trust Lawyer based on your questionnaire and/or a video meeting.
The cost is for our package, in total, typically around USD 9750, plus some fees which are not included, but we will explain all fees you can anticipate in our complimentary consultation.
The total amount (excluding additional services, options with complicated registration of a tax-exempt trust in Nevis, and possible force majeure circumstances) will be 9750 USD!
The typical costs regarding an annual tax-exempt trust maintenance:
- Trustee’s fee
- Due diligence
- Renewal in the register
- Legal address
- Bank fee
- Basic accounting services (up to 10 transactions per year)
These vary, but annual costs are typically 5,000-10,000 USD per year. Contact us to learn what you can expect to pay.
The total amount (if you limited yourself to a basic set of services required to register a tax-exempt trust in Nevis) will be USD 7,620!
Please pay attention to the terms of payment for our services required to register a tax-exempt offshore trust in Nevis:
- All rates are in US Dollars.
- Service fees are NON-refundable.
- Rates are subject to change at any time.
- Rates are for standard services. If additional work and/or modification is required for a particular service, the cost will be increased accordingly.
- All prices are subject to state duties.
- Payment for registering a tax-exempt trust in Nevis and the annual fee are charged in advance at the start of the year.
- Prepayment invoices are issued for distributions or cancellations of the transaction.
- Hourly charges for other expenses are invoiced quarterly.
If you wish to register an International Business Company (IBC) in Nevis, which will act as a trustee in a tax-exempt offshore trust in Nevis, we are ready to offer this service (see details below).
Discuss the details with an expert
Check the list of required documents, and get the details of the process, terms, and costs.
Contact a consultantLet’s talk via messenger
Package 1: Nevis LLC/ IBC with Full Professional Service
From $9,950
Processing time: From 6-8 business days
Best for high-net-worth clients, asset protection, and those needing professional services, shareholders/members, and directors.
Includes:
- Company registration with the original Certificate of Incorporation
- Payment of government fees for the first year
- Appointment of a professional director/manager
- Full set of corporate documents apostilled
- Registration of a local representative in the shareholder registry
- Power of attorney
- Ongoing professional service, including directors and a shareholder/member
- Secure courier delivery of the full document set
Ideal for full-service clients who value privacy, asset shielding, and turnkey setup.
Package 2: Nevis IBC/LLC Registration with Digital Documents
From $3,350 Processing time: From 6-8 business days
Best for those seeking a more affordable, straightforward option for establishing a company, with digital documentation.
Includes:
- Digital corporate documents
- Government registration fees for the first year
- Provision of a local legal address
- Registered agent services for one year
Great for digital nomads, business owners, and consultants looking for a streamlined option.
Package 3: Nevis IBC/LLC Registration with Delivery of Apostilled Documents
From $3,950 + government fees
Processing time: From 6-8 business days
Best for entrepreneurs seeking to establish a company with original documentation delivered to them primarily.
Includes:
- Original and certified copies of corporate documents
- Government registration fees for the first year
- Local legal address in Nevis
- Registered agent services for the first year
- Worldwide courier delivery of the document set
Suited for entrepreneurs, investors, and those wanting physical documentation in their hands.
When you register a tax-exempt trust in Nevis (optionally a management company in Nevis), you can also order the Apostille package + full Nominee service.
Components of comprehensive services:
- Payment of the state fee for the tax-exempt trust registration in Nevis
- Services of the Registered Agent in Nevis
- Registered office (legal address) in Nevis
- One set of original corporate documents
- One set of apostilled copies of corporate documents
- Nominee Director/Manager**
- Original apostilled power of attorney
- Nominee Shareholder/Member**
- Trust Declaration (original)
- One set of copies of the nominee’s apostilled corporate documents
- One set of copies of corporate documents
- Certificate of Good Standing
- Certificate of Incumbency
- Power of attorney (copy)
- Declaration of Trust (copy)
- Copy of passport
- Copy of a utility bill
- A reference letter from the bank or an account statement
- Delivery by courier worldwide
The total period of an offshore IBC registration in Nevis (subject to availability of all the required documents and receipt of money to the account of the Offshore Pro Group) is about 4 business days.
Other popular services in Nevis that we provide to those who wish to register offshore companies or open bank accounts:
Due Diligence Required to Register a Tax-Exempt Trust in Nevis
Although a trust in Nevis offers the highest level of protection and confidentiality, regulations to combat money laundering and terrorism financing must be adhered to. If Nevis authorities failed to comply with these standards, the island would quickly be blacklisted as an offshore jurisdiction, rendering the registration of an offshore IBC or tax-exempt trust futile. Therefore, due diligence is mandatory.
We have prepared a special questionnaire for you. Fill it in to provide most of the information necessary to set up a trust and comply with legal requirements. You can find it at the end of the article. Additionally, you need to prepare the documents of the Settlor, Protector, and Beneficial Owner(s).
A basic list of documents for the Settlor of a tax-exempt trust in Nevis:
- A certified passport copy
- An original/certified copy of proof of residential address (the document must not be older than 3 months)
- An original/certified copy of a reference letter from the bank
- An original/certified copy of a professional letter of recommendation
- A prepared CV
A basic list of documents for the Protector of a tax-exempt trust in Nevis:
- A certified passport copy
- An original/certified copy of proof of residence (not older than 3 months)
- An original/certified copy of a reference letter from the bank
- An original/certified copy of a professional letter of recommendation
- A prepared CV
basic list of documents for the Beneficial Owner(s) of a tax-exempt trust in Nevis:
- A certified passport copy
- An original/certified copy of proof of residence (not older than 3 months)
If the Settlor of a tax-exempt trust in Nevis is a legal entity, all corporate documents must be provided, along with the aforementioned documents for the individual controlling the company (such as the owner, director, etc.). Additional documents may be required if necessary.
Contact Q Wealth Experts
Ready to set up your trust, but not sure which option is best for you? Contact us today. You have two options. You can have a complimentary, fifteen-minute consultation regarding trust formation, ideal if you want to get started or learn about our service, or a one-hour consultation for 300 Euros, currently, normally 500, with an expert, if you want to dive deeper.
11 May 2022 