BVI, BC

BVI, Exempt

Executive Summary

Geographical Overview:

The British Virgin Islands are a collection of 36 islands in the Caribbean Sea, of which only 16 are inhabited. The islands are located about 80 kilometres east of Puerto Rico, north of the Leeward Islands and adjacent to the US Virgin Islands. The aggregate land area of the island group is 153 square kilometres. The principal islands are Tortola, Virgin Gorda, Anegada and Jost Van Dyke.
The population of the British Virgin Islands is approximately 24,000 and the official language is English. The population consists of a mixture of British, Spanish, Dutch, Amerindian and Caribbean racial types; in the last twenty years immigrants in search of work from other parts of the Caribbean have more than doubled the population. Proposals for tough new immigration laws are controversial.

Economic Overview:

The BVI have an excellent business infrastructure with good tele-communications. This is coupled with the widespread use of the English language and a legal system largely based on British law, making the island a very convenient and effective business base. The very large numbers of offshore companies, trusts, insurers and mutual funds on the islands are supported by a well-developed and diverse professional services sector.
To do business in the BVI (as distinct from establishing an offshore trust or company) a Trade Licence is required from the Trade and Investment Promotion Department. The application form must be accompanied by a financial statement, a police record, two business references (for the individual or the company applying) and financial details of the business being proposed.

Taxation Overview:

Taxation in the British Virgin Islands is compatatively simple, most notable for an absence of most major forms of taxation, which has led to the BVI styling itself as a modern offshore financial centre. The majority of the Government's revenues are obtained directly from annual licence fees for offshore companies incorporated in the jurisdiction. The BVI is also obliged to apply the EU's Saving Tax Directive of 20%.
The BVI introduced its successful International Business Company (IBC) in 1984 in order to attract offshore industry, and by the time the Act was superseded by the BVI Business companies Act in 2004, which effectively removed the distinction between 'offshore' and 'onshore' companies, well over 600,000 had registered in the jurisdiction.

Key Figures