St. Vincent & The Grenadines

Author: EQ Investment Solutions

Although some celebrities have been visiting the Grenadines for many years, the Caribbean islands of St.Vincent and the Grenadines (SVG) are still a secret to most travellers.

St.Vincent and the Grenadines are composed of 18 islands with a total population of just above 100,000. St. Vincent is a volcanic island located 100 miles west of Barbados. Its’ capital Kingstown is blessed with a deep water harbour, large cruiseships as well as small sailing vessels are all attracted to the natural harbour, the year round pleasant climate and abundant nature.

St. Vincent, like many of the sister islands in the Caribbean, used to be a former British colony, and are now an independent self-governing democracy and part of the CARICOM. The economy is based mainly on tourism, agriculture and the financial offshore sector. Although the company tax currently stands at 32.5%, exporting companies to the region may only be taxed as little as 15%. The IMF granted support to SVG due to their budget deficit and the worldwide economic crisis.

SVG is emerging as a viable destination for real estate investments and growing business opportunities. It is expected that the Construction of an $200mn international airport will be finished in 2011, making access to the island ever so much easier. To purchase land, non-resident buyers need to obtain an Alien Land Holding License, which can be requested through the government. Applications must at least include a development plan.

In the past few years, St.Vincent has begun to establish themselves as one of the foremost financial offshore centers in the Caribbean. SVG offers tax-exemption to international companies; capital and profits up to $100,000 may be repatriated, while amounts exceeding this limit require government approval. SVG has no exchange controls. The offshore financial sector is monitored by the International Financial Services Authority (IFSA) on St.Vincent. Offshore Banking, trust formation, IBC’s and insurance are the mainstays of SVG’s financial center. (go to www.eqinvestmentsolutions.com for more information on other offshore financial centers).

SVG has signed 20 TIEAs (Tax Information Exchange Agreements) with countries around the world, the latest agreement was signed with Canada in June 2010. SVG has been placed on the OECD’s white list in March 2010. As SVG’s government particularly wishes to support the combat of international crime and money laundering, privacy protection has been somewhat compromised. In order to promote SVG’s finance industry, the government created an agency charged with promoting the industry internationally.

SVG permits international banks to establish themselves on the island, which must be well managed and staffed; shell banks are not permitted. The IFSA in collaboration with the Eastern Caribbean Central Bank in St.Kitts monitors all banking on the island.

White sandy beaches away from the beaten path of international tourism, beautiful diving and solid international finance make St. Vincent a very desireable destination for expads and international investors. For offshore company purposes, other jurisdictions in the Caribbean offer more flexibility, privacy and a more extensive range of services.

Disclaimer: EQ Investment Solutions does not provide legal or tax advice, and we recommend that clients seek professional advice in their respective home jurisdictions. EQ Investment Solutions has used their best and reasonable efforts in preparing this article and providing accurate information. However, this article is meant for general information purposes only and we make no expressed or implied warranties or representations with respect to the accuracy, reliability, suitability, availability or completeness of the article.

Article Source: http://www.articlesbase.com/investing-articles/st-vincent-the-grenadines-3263969.html

About the Author

EQ Investment Solutions is located in the Caribbean and offers comprehensive consulting services for international investors. Services include offshore company formations, business & marketing plans, offshore banking & mortgages, buyers’ agent services and economic citizenship support. Ariane M. Richter has successfully managed & consulted businesses in the Caribbean since 1997. http://www.eqinvestmentsolutions.com/