Since 1989, O’Neal Webster has provided high-quality legal counsel to domestic and international clients with complex matters in commercial, insolvency, and probate litigation; corporate, banking, finance, and investment fund; trusts and estates; intellectual property; real estate; and admiralty from its offices in the British Virgin Islands, London, and New York.
The acquisition, holding and transfer of BVI property, is regulated by the Registered Land Act, and for persons who are not citizens, also by the Non Belonger Landholding Regulation Act.
The acquisition, holding and transfer of BVI property, is
regulated by the Registered Land Act, and for persons who are not
citizens, also by the Non Belonger Landholding Regulation Act. The
sale, gift, or inheritance of property triggers statutory
licensing, filing, and stamp tax requirements. Accordingly, before
you acquire property, it is best to plan ahead and take legal
advice on how best to structure your property holdings. The basic
advantages and other considerations relating to the most common
options are set out below.
STRUCTURE
TYPE
CONSIDERATIONS
BENEFITS
Trust
Discretionary
(BVI or non BVI)
Unless the settlor is also the
Trustee, the Settlor is excluded from decision making
Avoids Probate
Minimal formation fees
No annual Fees
Letter of Wishes may be created to inform Trustee
decisions
VISTA
(Trust of the shares of a BVI company)
Requires formation of BVI Company
Modest Formation Fees
Modest Annual fee obligations to maintain company
Avoids Probate
Settlor can be company director and retain active control over
property
Company
BVI
Modest BVI formation Fees
Modest Annual fee obligations to maintain BVI company
Avoids Probate
Simple fast incorporation
Tax Exemptions for close transfers (i.e. to spouse, children or
trusts benefiting spouse and/or children)
Non-BVI
Additional time for processing NBLH
application
Avoids Probate
BVI company with Non-BVI company/
trust/ LLC as sole director and shareholder
Requires 2 entity formations
Modest BVI formation Fees
Modest Annual fee obligations to maintain BVI company
Non-BVI entity may have further filing/tax burdens
Avoids Probate
Transfer of Non-BVI company interests has no statutory impact/
requirements
Individual
Sole Proprietor
Triggers statutory requirements for any change in
ownership
Tax reduction for change from sole proprietor to other form of
ownership provided the beneficial ownership remains the same
Tax exemptions for close transfers (spouse, children etc.)
Joint Tenancy
Not suitable outside of close relations (spouse, children
etc)
Extinguishes the interest of owners who pre-decease other joint
tenant(s)
Can be converted to Tenancy-in-common unilaterally by either
tenant leading to estate planning issues
Avoids Probate until the death of the
last survivor
Tenancy in Common
Requires Probate of each owner's
share
Each owner can dispose of their
interest separately subject to statutory requirements
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
