The legislation which supports the formation of Nevis offshore trusts or Nevis exempt international trust was passed in 1994 and amendments have since been made. The Nevis offshore trust provides asset protection and can be used to reduce tax liabilities and estate planning.
The Nevis offshore trust legislation makes provisions for two type of offshore trusts be formed in the offshore tax haven; charitable and non- charitable trusts.
Charitable trusts are set up to benefit a community or a greater part of a community. Nevis offshore charitable trusts can be formed for alleviating poverty, for research and development in science and education, protection of the environment, the advancement of religion and any other purpose which will benefit a community. Nevis offshore charitable trusts can last for a period of more than one hundred (100) years.
A Nevis offshore trust formed for charitable purposed is exempt from all forms of local taxation. Nevis charitable trusts are also exempt from stamp duty on transactions carried out on behalf of the offshore trusts. Nevis offshore charitable trusts are easy to set up. The use of a registered agent is an obligation according to trust legislation in Nevis.
Non-Charitable offshore trusts in Nevis are set up for private reasons such as safeguarding wealth for minors and families. This type of trust can be set up for any specific reason which is deemed to be legal under the laws of the offshore tax haven of Nevis. A Trust protector must be appointed for non-charitable trusts in the offshore jurisdiction of Nevis. A registered agent is also needed for the formation of the Nevis non-charitable trusts. Like the charitable trust, the Nevis non-charitable trusts are exempt from paying local taxes on foreign earned income.