How to Set Up an Offshore Trust in St. Kitts and Nevis

Update: In October 2024, the St Kitts and Nevis Citizenship by Investment Unit announced major amendments to its CBI Program. Key changes included reducing the minimum real estate investment to US$325,000 and lowering the cost for single-family homes to US$600,000, among other changes.

Asset protection and personal freedoms are two things that any Nomad Capitalist values. 

That’s why offshore trusts and second citizenships have long been part of this company’s strategy for helping high-net-worth individuals thrive.

One place that always tops our list for offshore trusts and other wealth protection strategies is St Kitts and Nevis. 

If you’ve ever considered setting up an offshore trust in St Kitts and Nevis, now is the time to do it. 

The Caribbean nation is becoming an increasingly popular destination among high-net-worth individuals due to its robust legal framework and favourable tax environment. 

What we love most, though, is that the island nation’s government is invested in improving fiscal security and investment opportunities.

One such example is that in October 2024, after analysing market shifts, the government announced major amendments to its citizenship-by-investment (CBI) program, which included reducing the minimum real estate investment to US$325,000.

It remains to be seen what the knock-on effects, if any, will be for the process of setting up an offshore trust there, but the winds of change are currently blowing through the Caribbean.

This, and a previous Memorandum of Agreement (MOA) signed with other Caribbean nations, is a part of a broader initiative aimed at upgrading regional standards, particularly as they relate to local CBI programs. 

The MOA addressed issues such as enhancing transparency measures, establishing a regional competent authority, setting common standards of communication and promotion and more – all things you want out of a CBI program and a country where you set up an offshore trust.

While establishing a Nevis international trust might not be the ideal solution for everyone, if you’re looking for an offshore trust that offers high-level protection and the utmost discretion, then St Kitts and Nevis could be the solution for you. 

With no inheritance or capital gains taxes, the jurisdiction is an ideal setting for preserving family wealth across generations. 

Why Set Up an Offshore Trust in St Kitts and Nevis?

There are a couple of good reasons why you should consider St Kitts and Nevis as a location for your offshore trust, but first, let’s take a little look at the country’s geography, politics and legal system.

It’s a Caribbean nation consisting of the island of St Kitts and the smaller island of Nevis. The larger St Kitts is the administrative capital, while Nevis enjoys a degree of political autonomy, allowing it to set its own legislation.

That’s important because it enables Nevis to create trust structures under its own legal framework with exceptionally strong levels of asset protection.

Today, the twin island nation has emerged as a regional success story, an ideal destination for businesses, entrepreneurs and investors pursuing secure, tax-efficient, private asset protection.

Located in the Eastern Caribbean, St Kitts and Nevis is the ideal gateway to the Americas, providing access to multiple regional markets. 

What to Know About St Kitts and Nevis Trusts

When someone refers to a St Kitts and Nevis trust, they are, in all likelihood, referring to a Nevis trust, formerly known as a Nevis International Exempt Trust.

Nevis trusts are primarily employed for asset protection and have a reputation for being virtually impregnable, tax-exempt and highly confidential.

Since Nevis does not recognise overseas judgments, creditors must take legal action directly through the Nevis courts, which further shelters individuals from litigation.

This draws the frustration of certain commentators, with Nevis regularly criticised for its lack of transparency and cooperation.

Nevertheless, choosing to use a Nevis trust remains popular with individuals seeking a tax-efficient, robust structure with the utmost discretion and privacy.

Nevis Trust Structure

Nevis trusts are designed to safeguard assets from creditors, ensure smooth wealth transfer and offer privacy in financial dealings. 

To do that, they are structured in the following way:

• Settlor: Initiates the trust by transferring ownership of assets to the trustee, establishing the framework for beneficiaries
• Trustee: Responsible for managing the trust assets in accordance with the Trust Deed, ensuring the interests and directives set by the settlor are prioritised
• Beneficiaries: Individuals or entities designated to receive benefits from the trust, as outlined by the settlor’s instructions
• Protector (optional): Provides oversight of the trust’s operations, ensuring that the trustee adheres to the Trust Deed. The protector may have the authority to appoint or dismiss trustees if necessary
• Trust Deed: The foundational legal document that specifies the trust’s objectives, delineates the responsibilities of involved parties and sets conditions for asset distribution.

This specific structure ensures efficient management and protection of assets, aligning with the financial goals and interests of all parties involved.

Nevis Multiform Foundations

Nevis Multiform Foundations, established in 2005, provide a hybrid structure that offers the flexibility to form a:

• Charitable foundation
• Private interest foundation
• Trust
• Partnership or company. 

The structure of a multiform foundation can be changed at a later date, or an existing entity can merge into another.

To establish a Nevis Multiform Foundation, certain registration requirements must be met to ensure compliance and maintain confidentiality:

• Registration process: The Trust Name, Trustee and Registered Office must be officially registered with the Registrar of International Trusts. This registration includes a certification statement affirming that the trust adheres to the provisions outlined in the Trust Ordinance
• Confidentiality assurance: The trust deed or declaration of trust is not required to be filed with the Registry, preserving the confidentiality of the settlor and beneficiaries’ identities
• Fee structure: There is a government fee of US$225 for the initial registration of the trust. Additionally, an annual fee of US$220 is required to maintain the registration.

These chameleon-like asset protection plans are regarded as the ideal vehicle for charitable purposes, estate planning and holding special financing vehicles.

Who Uses Nevis Trusts?

Nevis trusts are particularly appealing to high-net-worth individuals looking to shield their assets from creditors: they’re the perfect deterrent against predatory litigation.

Predatory litigation operates on the principle that the potential rewards far outweigh the cost. But with a Nevis trust, the costs of litigation, in terms of time and expense, are prohibitive as all disputes go through a Nevis court.

A Nevis trust can also facilitate friction-free estate planning. The trust’s settlor can ensure the safe transfer of assets with little to no foreign interference or threat of legal action.

Is a Nevis Asset Protection Trust the Same Thing?

A Nevis trust is a type of asset protection trust and, yes, that’s just another name for the same thing – a Nevis trust.

The Nevis Asset Protection Trust is a structure that was established under the Nevis International Exempt Trust Ordinance (NIETO) of 1994.

This allows the settlor and beneficiary to be the same individual, but both must be non-residents on the island. It also means that both parties are tax-exempt for all transactions.

There are no registration requirements beyond the trust’s name and the trustee’s contact details. At least one Nevis trustee must be from an entity licensed in Nevis.

Benefits of a Nevis Trust

As we know, the primary benefits of a Nevis trust are confidentiality and asset protection, and these are enshrined in legislation. 

As per the Nevis Act: ‘Any rule of law or public policy which prevents a settlor from establishing a spendthrift or protective trust of which he is a beneficiary is hereby abolished.’

Further amendments to NIETO made in 2015 provided additional layers of protection.

For example, the Nevis courts first require creditors to deposit a bond of the equivalent of US$25,000 to guarantee any legal expenses they may incur. 

If unsuccessful, the creditor risks forfeiting that amount while also being liable to pay the other party’s legal costs (i.e., the trust beneficiary). 

Other benefits of setting up an offshore trust in St Kitts and Nevis include robust legislation around these types of international trusts.

Nevis Trust Legislation

Although establishing a Nevis trust is fairly easy, there are several laws and regulations to consider. 

Fortunately, these work to benefit you and your beneficiaries. They include the following:  

• Spendthrift clauses: protect beneficiaries’ assets from creditors, as guaranteed by the Nevis Act.
• Confidentiality: in addition to providing solid asset protection, the Act also guarantees privacy protection for individuals establishing a Nevis trust.
• Self-settled trusts: local law permits both parties of a Nevis trust (the settlor and beneficiary) to be the same individual while affording the same legal protections to the beneficiary.
• Protection: Since the Nevis trust statute does not recognise foreign judgments, creditors must subsequently go through the courts in Nevis, incurring any additional delays and expenses that may entail.
• Local representation: If a creditor decides to take legal action in Nevis, they must find a legal professional who is qualified to practice law in Nevis. This can be difficult since many such practitioners already represent trust companies and banks. And since contingent legal fees are not allowed, they have to be hired on a retainer basis, thus incurring more upfront costs.
• Burden of proof: Under Nevis law, the burden of proof is on the creditor to prove impropriety during the proceedings. As this is carried out within the Nevis court system, which operates under a common-law framework, the onus is on the creditor to prove their case ‘beyond a reasonable doubt’.
• Bonds: To take legal action against trust property, the creditor must provide a bond in the amount of US$25,000.
• Statute of Elizabeth: This legislation is the foundation for fraudulent conveyance law in the United States and the UK and was the first of its kind. However, under Nevis trust law, it is overruled.
• Statute of limitations: Nevis has a short statute of limitations of 1–2 years, depending on the specific circumstances, providing a very narrow window in which a creditor can take action.

You must also have a minimum of one trustee who can be an individual or a Nevis-registered corporation or law firm.

Trust types can be protective, spendthrift or qualified foreign trusts and can be either charitable or non-charitable.

There are no restrictions on trust property except for one notable exception: a Nevis trust can hold various types of assets but is not permitted to own any land in St Kitts and Nevis.

All these factors combine to provide ironclad asset protection for beneficiaries.  

Indeed, according to our sources, there are, as of yet, no instances of a Nevis offshore trust being dismantled or of a creditor being successful in such cases.

Unless the island of Nevis decides to make major changes to its legislation, that’s unlikely to change any time soon.

How to Set Up a Nevis Trust

To set up a Nevis trust, you must first have the trust legally registered with the Registrar of International Trusts.

This requires you to register the trust’s name, the trustee’s name and the trust’s registered office. You also need to provide a statement to guarantee that your trust adheres to the Nevis International Trust Ordinance.

Sounds simple enough, right? Sort of, but it’s definitely more complex than just registering your name and paying a fee.

The full step-by-step process of setting up a Nevis trust offshore includes the following tasks:

• Engage a registered agent: The registration must be carried out by a registered agent, such as an attorney or a local management company
• Submit the required documentation: After paying the fees, you need to provide a notice detailing the name and registered office of the Trust
• Ensure compliance: Submit an undertaking confirming that the Trust document complies with the Nevis International Exempt Trust Ordinance (NIETO)
• Trustee requirements: At least one trustee must be a corporation incorporated under the Nevis Business Corporation Ordinance (NBCO) or a trust company operating in Nevis
• Certification: Next, you need to obtain a certificate from a trustee company, barrister or solicitor. This certifies:
  • The trust will be an international trust upon registration
  • The creation, settlement, or establishment date of the trust
  • Legal compliance for qualified foreign trusts, including governing law and registration dates.
• Legal Compliance: Finally, you’re required to certify no alterations have been made to the trust and that no illegal activities or pending litigation involve the trust in any way.

Remember, your trust deed/declaration does not need to be registered, so the names of the beneficiary (or beneficiaries) and settlor can be kept confidential.

What’s the Difference Between a Nevis Trust and a Nevis LLC?

A Nevis Limited Liability Company (LLC) is a legal entity similar to a US-style LLC but formed under the Nevis Limited Liability Company Ordinance (NLLCO). 

As such, a Nevis LLC cannot be held liable for the debts of its constituent members.

While the primary purpose of this structure is to conduct business when using a Nevis LLC, assets such as real estate can be held by the entity rather than owned by an individual.

By using a Nevis LLC in this way, you can, therefore, protect your assets from creditors and legal action.

Nevis trusts often use one or more Nevis LLCs as investment vehicles. The individual setting up the trust becomes the LLC manager but can later appoint a trustee, such as a Nevis law firm, to take over as LLC manager.

Should You Set Up an Offshore Trust?

What’s most important to know is that Nevis offshore trusts are a great vehicle to protect your assets from legal threats. 

Nevis trust law also has several strong provisions protecting the integrity of its trusts.

Like many common law jurisdictions, local laws in Nevis require clear and convincing evidence with the onus on the creditor to prove, beyond a reasonable doubt, that their claim is valid. 

Any failure to do so will leave them liable to pay the legal fees of the trust beneficiary, plus the prohibitive costs of such action would give any creditor cause to reflect. 

Similarly, a settlor’s creditors can also be dissuaded in this way since Nevis trusts allow both settlor and beneficiary to be the same entity.

Finally, thanks to Nevis trust legislation, your privacy is fully respected and you are not legally required to register your trust deed – this information can be kept confidential.

Combine all these factors and you have a formidable legal structure that affords you maximum confidentiality, asset protection and overall peace of mind.

Peace of mind is a good thing, as there’s a lot to consider in setting up an offshore trust. 

We suggest asking yourself these questions:

• What is your tax situation?
• Where are you currently located?
• Where do you do business?
• Do you need to open an offshore bank account or transfer funds between foreign bank accounts?

The list of factors can be huge and the decision on how to approach the issue, ultimately depends on your personal and financial circumstances. 

You can hire a Nevis attorney or a law firm and ask for their opinion, but since they only practice law in Nevis, they retain the prerogative to sell you a Nevis-based solution.

It’s important to remember that while St Kitts and Nevis will certainly protect you in certain situations, at Nomad Capitalist we don’t push one-country solutions – the offshore world has so many options. 

Other advisors may make everything sound simple to the point of being almost effortless, but we take a slightly different approach – we don’t recommend trusts to people who don’t have a genuine need for one.

Ultimately, complete asset protection requires more than just setting up a trust and our view is that everyone needs a complete holistic strategy which includes banking, asset protection, second residence and citizenship. 

At Nomad Capitalist, we take into account every aspect of your personal and business life. Then, finally, we create a personalised Action Plan that’s custom-designed to meet all your goals. 

Nevis Trusts: FAQs

Put Your Trust in Us

Armed with this knowledge, you can consider whether setting up an offshore trust in St Kitts and Nevis is a good option for you.

Are you tired of constant government intrusion into your finances and the movement of your money? Are you concerned about falling victim to over-zealous creditors seeking to take your wealth?

Fortunately, St Kitts and Nevis offers an ideal safe haven for your wealth and provides a veil of privacy that prevents unwanted eyes from spying on your business. 

With the constant buzz around the creation of Central Banking Digital Currencies and increased cryptocurrency regulation, it’s fair to assume that the government wants more control over your money.

Our team at Nomad Capitalist specialises in helping our clients establish offshore trusts and move their wealth to a safer environment. 

We create holistic plans tailored to your individual goals to help you gain more freedom and go where you’re treated best. 

To get started, contact us today.