Saint Kitts and Nevis is a small island nation in the Caribbean. This jurisdiction is not so popular among entrepreneurs from Russia, but it is worth considering in more detail.

The state is a member of the British Commonwealth and is characterized by a stable political and economic situation. Also in the state there are no currency controls. The downside is the lack of a developed banking sector, so enterprises registered in the territory of this state have to open accounts elsewhere.

Saint Kitts fulfills the requirements of the FATF, and therefore the jurisdiction is not in the black or gray lists of this organization. This means that registered enterprises will not attract the increased attention of bodies that counteract the laundering of proceeds from crime.

Currently, Saint Kitts and Russia do not have a double tax treaty. The state is listed in the list of states that do not exchange tax information with Russia (see the order of the Federal Tax Service of Russia dated September 30, 2016 NMMV-7-17/527@). However, in the information and reference systems there is an updated draft order of the Federal Tax Service, which will enter into force on January 1, 2019. The state of Saint Kitts is no longer listed in the draft order. Does this mean that Saint Kitts and Nevis will exchange tax information with the Federal Tax Service and whether it will be in automatic mode is not yet clear. Information on this is not available on the official website of the Department of Internal Revenue. However, it should be taken into account that if, nevertheless, such an exchange takes place in 2019, then the information for 2018 can be transferred to the Federal Tax Service of Russia.

Jurisdiction Summary

Saint Kitts and Nevis is a small island nation in the Caribbean. This jurisdiction is not so popular among entrepreneurs from Russia, but it is worth considering in more detail. The state is a member of the British Commonwealth and is characterized by a stable political and economic situation. Also in the state there are no currency controls. The downside is the lack of a developed banking sector, so enterprises registered in the territory of this state have to open accounts elsewhere.

Saint Kitts fulfills the requirements of the FATF, and therefore the jurisdiction is not in the black or gray lists of this organization. This means that registered enterprises will not attract the increased attention of bodies that counteract the laundering of proceeds from crime.

Currently, Saint Kitts and Russia do not have a double tax treaty. The state is listed in the list of states that do not exchange tax information with Russia (see the order of the Federal Tax Service of Russia dated September 30, 2016 NMMV-7-17/527@). However, in the information and reference systems there is an updated draft order of the Federal Tax Service, which will enter into force on January 1, 2019. The state of Saint Kitts is no longer listed in the draft order. Does this mean that Saint Kitts and Nevis will exchange tax information with the Federal Tax Service and whether it will be in automatic mode is not yet clear. Information on this is not available on the official website of the Department of Internal Revenue. However, it should be taken into account that if, nevertheless, such an exchange takes place in 2019, then the information for 2018 can be transferred to the Federal Tax Service of Russia.

St. Kitts and Nevis Passport: Benefits and Procedure

Citizenship of the small island state of Saint Kitts and Nevis is in steady demand among foreign entrepreneurs.

This is primarily due to the following:

1. Saint Kitts and Nevis officially recognize dual citizenship. That is, the condition for obtaining their passport is not a refusal of existing citizenship.
2. To obtain citizenship, there are no requirements regarding the length of stay in the country; knowledge of the English language is also not required.
3. Quick procedure for obtaining citizenship - a passport can be obtained within a month after the submission of all necessary documents. Moreover, a personal presence when submitting documents is optional - this is done by local agents. But you can get a passport only in person.
4. The possibility of obtaining citizenship not only to the entrepreneur, but also to his spouse (spouse) and their minor and even adult children.

What can a new passport give to a Russian entrepreneur?

• The possibility of visa-free travel within the European Union and the benefits of applying for a visa to the United States.
• The ability to diversify your business.

Citizenship of Saint Kitts and Nevis can be obtained by buying real estate in the amount of 200 thousand dollars (sale is possible after 7 years) or in the amount of 400 thousand dollars (sale is possible after 5 years). It is not necessary to buy a finished building. You can also purchase a land for construction, but the list of objects for sale to foreigners in order to obtain citizenship is approved by the government. Violation of the term for the sale of real estate leads to the annulment of citizenship. When purchasing real estate you will need to pay a tax of approximately 10% of the cost. There are also mandatory contributions to the real estate insurance fund.

However, obtaining a passport is in itself a costly undertaking.

In addition to real estate investments, it is necessary:

• Pay the registration fee ($ 35,047 per entrepreneur, $ 25,047 thousand per spouse, $ 10,047 per dependent, regardless of age).
• Pay the value of the reliability assessment (7.5 thousand dollars for the investor, 4 thousand dollars for the spouse (spouse) and the same amount for each child over 16 years old).

That is, the cost of obtaining citizenship per family is very impressive. In addition, to obtain a passport it is necessary to attract an authorized agent, which is also very costly. You can find out more about the program, as well as a list of authorized agents, on the website of the Government of Saint Kitts and Nevis (https://www.ciu.gov.kn/investment-options/).

The passport is issued for a period of 10 years and can be extended, and the procedure is not required as with the initial receipt.

The procedure for obtaining citizenship is as follows:

1. Collection of documents and their submission to the appropriate government commission.
2. Purchase of a building or land (or making a sponsorship donation).
3. Obtaining a certificate of naturalization from the government commission.
4. Applying for a passport.

The whole procedure takes, as a rule, from 4 to 8 months, but there is the possibility of accelerated citizenship in 60 days (and in some cases 45 days).

In addition, it is possible to obtain a passport by donating to funds. Previously, citizenship was obtained by contributing to the Hurricane Victim Assistance Fund. Now the government has organized the Sustainable Development Fund. The contribution to the head of the family is 150 thousand dollars, for each dependent - an additional 10 thousand dollars. To obtain passports for a family of 4 people, 195 thousand dollars must be donated. At the same time, security check contributions are also required.

Saint Kitts and Nevis can safely be called a "tax haven."

Foreign business enterprises, the so-called Nevis Business Corporation (NBC) do not pay:

• Corporate tax.
• Sales tax.
• Capital Gains Tax.
• Sales tax.

There is only a mandatory annual contribution, which is paid to the Ministry of Finance. International tax-exempt companies cannot operate in Saint Kitts and Nevis.

Individuals do not pay tax on income received outside the state, inheritance or gift taxes.

More information on state legislation can be found on the website of the Department of Internal Revenue on the official website (https://www.sknird.com/mytaxlib-taxlibpdf-page-6.aspx).

There are no requirements for accounting and reporting. However, Nevis companies must maintain financial records that reflect the financial condition of the company.

The name of the NBC company must contain the words Corporation, Incorporated, Limited Company. It is forbidden to use a name that is identical or very similar to already registered names. The word "Trust" may be used in the name Nevis Business Corporation without a special license.

The number of directors must be equal to the number of shareholders. This requirement is valid for a company with no more than three shareholders.

If there are three or more shareholders, then the minimum number of directors required for NBC is three.

Directors can be both individuals and corporate, can be of any nationality without the requirement to be residents of Nevis.

The company must appoint a secretary.

Saint Kitts and Nevis is licensed by selected Financial Services Commission.

The following activities are subject to licensing:

• Insurance activity.
• International banking.
• Activities of cashing checks, currency exchange, issuing travel checks, making postal money transfers.

The size and terms of payment of royalties, as well as application forms are available on the official website of the Financial Services Commission

(http://www.nevisfsrc.com).

Other types of financial activities are not subject to licensing.

So, if you provide services or sell goods on the territory of the state of Saint Kitts and Nevis, without creating a legal entity, the tax will be 4% of the turnover (see the Unincorporated Business Act of 2010).

You will also have to pay property tax, which depends on which class the property belongs to (permanent residence, temporary accommodation, business, agriculture, institutions). There is a benefit that applies to premises intended for permanent residence: the value of the premises, taxed, is reduced by 8 thousand dollars. The amount of property tax is determined by the market value of the property. The tax rate can be 0.2% to 0.3%.

When transferring a property, stamp duty is paid - from 2% to 18.5%. Stamp duty is paid by the seller. Buyers who are not tax residents of the jurisdiction must obtain a land tenure license. Permission cost - up to 10% of the purchase price.

Interest, dividends and royalties are taxed at a rate of 15% in the event that the recipient is a non-resident.

VAT is 17%, paid in the case of the sale of goods and services within the country, and in the case of import of goods into the country.