ANGUILLA

Name of country

• ANGUILLA

Region

• The Caribbean

Population

• The current population of Anguilla is 15,173 as of October 2021

General Introduction

• Anguilla is the most recent country to join the growing list of jurisdictions offering residency or citizenship by investment programs to entice foreign direct investment. Anguilla is pleased to announce two programs aimed at attracting high-net-worth individuals who aspire to become permanent residents of the island and benefit from its favorable tax environment.

Wifi Speed

• With speeds of up to 50 Mbps (download) and up to 10 Mbps (upload)

Electrical outlet

• The power plugs and sockets in Anguilla are type A. The standard voltage is 110 volts, with a 60 Hz frequency.

Per Capita GDP 

• $12,200 (2008 est.)

Climate

• Tropical; moderated by northeast trade winds

Residence-by-Investment

•  In June 2019, Anguilla launched its residency-by-investment scheme. The program is appealing to investors looking for a tax-advantaged dwelling. Unlike other Caribbean countries, such as St. Kitts and Antigua, Anguilla does not offer citizenship by investment or a second passport. Applicants can meet the requirements by investing in the Capital Development Fund or directly in real estate.

Investment

CAPITAL DEVELOPMENT FUND

• A single applicant’s minimum investment is $150,000, plus $50,000 for each spouse or dependant. Fees for application, processing and due diligence are all extra.

REAL ESTATE INVESTMENT

• A minimum investment of $750,000 is required, with up to four family members eligible for residency. A $100,000 investment is required for each subsequent family member. Fees for application, processing and due diligence are all extra.
• A minimum of 5 years must be spent on the property. Homes, villas, condominiums, hotel units, and other types of property are all eligible. Prior to committing to the investment, investors can apply for conditional approval of the application.

Key Benefits

• By giving the ability to remain in Anguilla year-round without being subject to immigration control, this is an appealing option for people who already have relationships here and want to formally declare Anguilla their second home.
• Migrants from highly developed countries can benefit from the transition to a low-tax jurisdiction that offers a slower pace of life, a clean environment, low air pollution, low crime rates, and relatively good quality of life, all while enjoying a tropical climate, amazing food, people, and beautiful beaches.
• It also appeals to those who continue to live abroad but want a different nation of residency for themselves and their family for tax planning and other reasons.
• Permanent Resident status can be a good way to become a British Overseas Territories Citizen and afterward a British Citizen.

Requirements

TAX RESIDENCY REQUIREMENTS

An applicant must meet the following qualifications to qualify for Tax Residency through Anguilla’s High-Value Resident Program:

• Pay US $75,000 per year in annual worldwide income tax to Anguilla’s Treasury
• Own and maintain the property in Anguilla with a minimum value of US $400,000
• Spend at least 45 days per year in Anguilla
• Establish genuine links in Anguilla, such as bank accounts, memberships, and so on
• Declare that no more than 183 days per year has been spent in any other country
• Demonstrate the ability to readily transfer the first five years of tax payments
• Pay the program’s application and due diligence fees

Natural Resources

• salt, fish, lobster

Ethnic Groups

• African/Black 85.3%, Hispanic 4.9%, mixed 3.8%, White 3.2%, East Indian/Indian 1%, other 1.6%, unspecified 0.3% (2011 est.)

 Languages

• English (official)

 Religion

• Protestant 73.2% (includes Anglican 22.7%, Methodist 19.4%, Pentecostal 10.5%, Seventh Day Adventist 8.3%, Baptist 7.1%, Church of God 4.9%, Presbyterian 0.2%, Brethren 0.1%), Roman Catholic 6.8%, Jehovah’s Witness 1.1%, other Christian 10.9%, other 3.2%, unspecified 0.3%, none 4.5% (2011 est.)

Median Age

• total: 35.7 years
• male: 33.7 years
• female: 37.6 years (2020 est.)

 Urbanization

• urban population: 100% of total population (2021) rate of urbanization: 0.47% annual rate of change (2020-25 est.)

Physician density

• 0

Government type

• parliamentary democracy (House of Assembly); self-governing overseas territory of the UK

 Unemployment Rate

• 8% (2002)

Taxes

Headline Personal Income Tax Rate (highest marginal tax rate) – 0%

Headline Corporate Income Tax Rate (excluding dividend taxes) – 0%

Territorial Tax / Worldwide Tax / Hybrid 

• Anguilla is one of a small number of British Overseas Territories that serves as a tax haven. Offshore companies that earn income outside of their jurisdiction are not subject to taxation. 

Special Tax Regimes 

• Anguilla has one of the most advantageous tax systems in the world. There are no direct taxes on the island. Residents are exempt from paying income tax. There are no capital gains taxes. There is no inheritance tax. In addition, there is no corporate tax.

Trusts Act 2014
14. (l)A trust may be created for a commercial or another purpose that is non-charitable if –

(a) the purpose is specific, reasonable, and capable of fulfillment;

(b) the purpose is not immoral, unlawful, or contrary to public policy and

(c) The terms of the trust provide for the appointment of a protector who is capable of enforcing the trust and for the appointment of a successor to any such protector.

(2) If the Attorney General has reason to believe that there is no protector of a trust for a non-charitable purpose or the protector is unwilling or incapable of acting, he may apply to the Court for the appointment of a person to be the protector of the trust, and the Court may, unless it feels that the person is not fit, by order declare him to be the protector to enforce the trust.

(3) The order of the Court under subsection (2) is conclusive evidence of the appointment of the protector to enforce the trust and the appointment takes effect as from the date of the order.

(4) Where any costs are incurred by the Attorney General in connection with any application under subsection (2), the Court make such an order as it considers just as to the payment of those costs out of the assets of the trust.

Purpose trusts offer a flexible, versatile solution in situations where assets are held for particular purposes without giving any person (or class of persons) an interest in those assets. It is also common to combine a specific purpose trust with a charitable or beneficial trust both in commercial and private wealth situations.

Purpose trusts have been used in a variety of ways in Anguilla for succession planning, tax planning, or commercial reasons. This includes holding shares in one (or multiple) companies or a private trust company. The latter may be of interest to family offices or high net worth individuals due to the additional confidentiality and control. In addition, the shares would fall outside of the estate which has an added benefit in terms of succession and continuity. Purpose trusts have also been used in this jurisdiction for holding shares in a family business which helps with succession or investments in those companies. Lastly, the purpose of the trust may be public spiritual i.e. they fall outside of· the usual charitable trust definition yet they have an element of philanthropy.

Tax Liability

Anguilla Trusts are not from tax as long as certain conditions are met. The settlor and the beneficiaries, must not be residents in Anguilla, and the trust property must not include ( a) any land situated in Anguilla or (h) the shares of any company beneficially owning any land located in Anguilla. As long as those conditions are not then an Anguilla Trust will not be subject to any income, no tax, withholding tax, asset tax, gift tax, profit tax, capital gains tax, distributions tax, inheritance tax, estate duty

New Legislation

Anguilla is in the process of enacting a new Act entitled the Anguilla Special ·Trusts Act, 2021. This new Act includes provisions for trusts which are non-charitable all set up for a purpose similar to current Anguilla Trust Act. The proposed new Act specifically states that the purposes of· the Trust may be of any number or kind, charitable or non-charitable, provided that they are painful and not contrary to public policy. This is therefore an exciting time for Anguilla Trust law with more options and flexibility for those visiting to set up a non-charitable trust in the jurisdiction.