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
  1. Avoids Probate
  2. Minimal formation fees
  3. No annual Fees
  4. Letter of Wishes may be created to inform Trustee decisions
VISTA
(Trust of the shares of a BVI company)
  1. Requires formation of BVI Company
  2. Modest Formation Fees
  3. Modest Annual fee obligations to maintain company
  1. Avoids Probate
  2. Settlor can be company director and retain active control over property
Company BVI
  1. Modest BVI formation Fees
  2. Modest Annual fee obligations to maintain BVI company
  1. Avoids Probate
  2. Simple fast incorporation
  3. 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
  1. Requires 2 entity formations
  2. Modest BVI formation Fees
  3. Modest Annual fee obligations to maintain BVI company
  4. Non-BVI entity may have further filing/tax burdens
  1. Avoids Probate
  2. Transfer of Non-BVI company interests has no statutory impact/ requirements
Individual Sole Proprietor
  1. Triggers statutory requirements for any change in ownership
  2. Tax reduction for change from sole proprietor to other form of ownership provided the beneficial ownership remains the same
  1. Tax exemptions for close transfers (spouse, children etc.)
Joint Tenancy
  1. Not suitable outside of close relations (spouse, children etc)
  2. Extinguishes the interest of owners who pre-decease other joint tenant(s)
  3. 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.