By using offshore private foundations registered in St. Kitts and Nevis, assets and money can be managed completely tax-free. This tax-planning structure became more and more popular in these Caribbean countries since 2004.
Our previous articles about private foundations:
There is no personal income tax in St. Kits and Nevis, so neither the founders nor the beneficiaries have to pay taxes after money or assets they take in or take out from the foundation. If the foundation is an Exempted foundation, than it doesn’t need to pay fees after the properties handed over for the foundation, or took out from it, as long as the property is not located in the country. Transactions of securities are also free from taxes. There is no capital income tax in St. Kitts, so the founder and the beneficiaries are also free from the taxation as well.
The goal of the offshore private foundation is serving the interests of the
beneficiaries. The members of the advising board are supposed to inform the beneficiaries and handle the assets of the private foundation effectively. It is possible to appoint supervisior over the foundation, to ensure that everything is going according to the founder’s will. This supervision can be done by the founder or the beneficiaries, but a member of the advising board can’t be supervisor.
The most important advantages of the St. Kitts private foundations are:
– Complete discretion and anonymity for the beneficiaries
– Tax exemption for the private foundation as long as its connections are
not residents of St. Kitts and Nevis.
– There is no necessary specified minimum to found the foundation
– Inheritance laws do not affect the goals and activities of the foundation
– The costs of registration in St. Kits are competitive
– It’s possible to migrate private foundations registered in other countries
– The management and assignation of the assets of family members,
inheritors, and children are simple and flexible.
Founding process of an offshore private foundation in St. Kitts and Nevis:
The memorandum has to be handed over to the appointed bureau. (Registar of Foundations). From the moment of the registration the foundation is a separate legal entity, who can collect and keep different assets on its own name.
Necessary information for the registration:
– The name and address of the private foundation
– Naming the initial assets. The founder must pass the initial assets to the foundation after the registration
– Naming the type of the foundation, it can be:
– A declaration about the actions of the advising board, in case of the tax
exempt status of the private foundation breaks off
The founder can be neutral person, or legal entity.
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