BRITISH VIRGIN ISLANDS
Book Your Free ConsultationINTERNATIONAL BUSINESS COMPANIES (IBC’s)
A British Overseas Territory and perhaps the most famous of the world’s tax haven jurisdictions. Tax free and home to some of the world’s largest captive insurance companies not to mention perhaps the largest of the Caribbean’s IBC jurisdictions. English-speaking with a robust and stable common law system. Also famous as a playground for the world’s rich and boasting by far the highest standard of living in the West Indies.
Population: 33,000 (2025)
Size: 153 sq.km
Capital: Road Town
Economy: 60% of the BVI’s income derives from franchise and related taxes from company formation, captive insurance companies and related financial services. The balance of the BVI’s income is not surprisingly from tourism.
Taxation: The competent tax authority is called the Commissioner of Inland Revenue (CIR). However, the income and corporate* tax levels are set at zero whilst there is also no value added, capital gains or inheritance tax. The revenue earned by the CIR, apart from franchise taxes, mostly derives from payroll and stamp duties. It should also be noted that like most modern tax havens it is subject to the US Foreign Account Compliance Act (FACTA) and Common Reporting Standard (CRS).
* In keeping with OECD recommendations, the BVI has agreed to set a minimum corporate tax rate of 15%. However, it only applies to firms with an annual revenue of €750 million or above which renders it almost redundant for 99% of IBC companies.
Confidentiality: Confidentiality levels are high with no public disclosure of beneficial, directorship or secretarial positions.
Banking: There are a number of well-known British, private and international banks operating in the BVI. In addition, there are no restrictions for a BVI company to open up a bank account in another jurisdiction. However, in many cases IBCs are used as conduit companies and therefore don’t require a bank account.
Synopsis: The BVI remains one of the world’s most popular tax haven jurisdictions although generally more expensive than similar territories such as Belize.