Tax resident status for companies in Nevis: who will pay 33%?

How can a company incorporated in the island of Nevis become a tax resident and start paying local corporate tax? We will talk about this in the article.

Corporate taxes in Nevis

Offshore company on the island of Nevis

For many years Nevis has been a low profile but well reputed offshore jurisdictions. It has always been advantageous to register offshore companies, LLCs, IBCs, Offshore Trusts and Foundations here. Nevis’s best kept secret is that it is one of the most reliable asset protection jurisdictions in the world. By transferring assets to a company or trust in Nevis, you could almost count on no one being able to take it away from you.

Nevis is also popular for the registration of trading companies, for companies for the ownership and management of international assets, in particular real estate. As with any other offshore company, it is relatively easy for a company in Nevis to open an offshore bank account – if any bank account opening is easy these days!

Nevis, like other jurisdictions, has modernized its legislation, to strengthen the fight against tax evasion, money laundering and the financing of terrorism. The rules of the game have changed: some advantages have disappeared, but new ones have appeared!

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Nevis company and its tax resident status

According to information from the Nevis Island Administration (NIA), the Government of the country published amendments to the tax code in September 2020. Among these amendments, the new normal is territorial taxation, similarly to what we know from Panama.

Corporations and companies (entities) will be considered tax residents of Nevis and pay corporate tax on global income if the central control and management of the business is exercised from the island of Nevis.

In the event that there is no management and control on the territory of the island, but the company acts as a Permanent Establishment, then the corporate tax is due simply on the income received in the country. 

If the company has neither a representative office, nor management and control in the territory of Nevis, then it will not be required to pay taxes in the country.

At the moment, the standard local corporate tax in Nevis is 33%. Fortunately, Nevis has taken significant steps to simplify and reduce taxation in order to retain its foreign investors. It is clear that this 33% tax will only be due by companies that have physical operations on Nevis:  hotels, real estate, restaurants, supermarkets, gas stations etc. It has now been confirmed beyond any doubt that it will not apply to the offshore sector.

One of the key factors, of course, is that existing and new companies must maintain their Good Standing status, which means they must pay an annual renewal fee and ensure these payments are made in due time.

Should you open a company in Nevis?

Nevis has established itself over the years as one of the two most important jurisdictions in the world when it comes to personal asset protection and family office business (The other is the Cook Islands). Now we will emphasize: this is an excellent tool for protecting assets and personal data, but it can be difficult for it to open an account in a bank that is convenient for you.

Most, though not all, offshore companies will need to open an offshore bank account. For a while the problem of account opening became acute, since non-resident banking is under pressure almost everywhere – that is, banking for offshore companies and individuals. Fortunately, after a few years of pressure, account opening is becoming easier again. Things tend to go in cycles.

So, what is the solution? We reasonably come to a conclusion on the need to open a company and an account in one reliable, proven and flexible jurisdiction for your purposes.

There are banks in Nevis, and also banks in Puerto Rico, USA, Switzerland, Europe and Asia that will open non-resident accounts for Nevis offshore companies.

In any case, check these points with the portal’s consultants: info@offshore-pro.info.

Among all the variety, we suggest considering the following options:

  • A branch in Serbia – suitable also for a classic offshore company, if you already have one – you can open a European account for a branch, obtain a European tax number and easily set up real substance, with employees and physical office at a fraction of the cost of a small Caribbean island;
  • Open a company in Serbia and a local resident account (it is reasonable to think about obtaining a resident status for the owner – it will greatly simplify life);
  • Gibraltar branch of the Nevis company plus an account in a European payment system – especially for IT, gambling and similar companies;
  • A Canadian Partnership (or LP) with a Nevis company or two as partners:  and the local Canadian bank account, in both CAD and USD, account are a special love of our customers. Opens quickly, works accurately, access to everything needed;
  • A Portuguese company with a local account is a modern solution for those needing a presence in western Europe – it provides stability, predictability and the ability to work with one bank and account for many years without problems.

Nevis and its offshore colleagues are an interesting tool for solving a broad range of tasks. If you need fair taxation, strong legal asset protection, protection of personal data, and the ability to open an account with a reputable bank, please contact us today to schedule a consultation.

There are solutions that will come in handy this year and in the future! Write right now: info@offshore-pro.info.

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