Anguilla residency program offers new tax haven for investors

Anguilla, a British Caribbean Territory, is a new member of the group of countries offering citizenship by investment. It could well become a destination of choice for wealthy investors, especially North Americans, as it can be an attractive tax haven. But its downside is that it only offers residency to start with, citizenship being a longer term issue.

There is of course a difference between tax avoidance and tax evasion. We are obligated to pay taxes and it can be a crime to evade them. But there are people who try to avoid paying taxes when they can, including wealthy investors who know and appreciate this difference. This is where the advantages of Anguilla come into play.

Anguilla’s advantage is that it has no direct taxation, no income tax, capital gains tax, gift tax, net worth tax, inheritance tax or estate tax. companies. To become a permanent resident and take advantage of these tax benefits, applicants must invest in an approved government program, spend at least 45 days in Anguilla each year, establish genuine ties to the country, such as opening bank accounts, establishing memberships, etc., and not spend more than 183 days per year in any other country. Applicants who can meet these requirements can obtain permanent residency in Anguilla often as quickly as around three months.

Three options to choose from

There are three options for the Anguilla Select Residency Program – the program you complete before you can apply for citizenship.

A. Permanent residence by gift.

The donation option requires you to donate at least US$150,000 to the capital development fund. There is also an additional donation of $50,000 per dependent. An additional application fee of USD 3,000 for a family of up to 4 people applies, with USD 500 for each additional family member. There is also a due diligence fee of $7,500 per adult as well as $3,000 for each dependent. These fees, excluding donations, apply to all options below.

B. Permanent Residence By Real Estate.

As for the real estate option, for a family of four, you need to buy a house worth at least US$750,000. An additional investment of US$100,000 will be required for each additional person. Investors can submit the application for conditional approval before committing to the investment. Ownership must be retained for at least 5 years.

C. Tax residency in Anguilla.

Finally, the annual tax residency program requires the individual to own a home worth at least US$400,000 for at least five years. This allows the investor to obtain worldwide tax residency in Anguilla for an annual payment of $75,000. The property must be owned for the duration of the residency in Anguilla. You must spend a minimum of 45 days in Anguilla each year and no more than 183 days in any other country to maintain your tax residency.

BOTC Status

Becoming a permanent resident of Anguilla is a pathway to becoming a British Overseas Territories Citizen (BOTC) and, for those interested, possible citizenship in the UK.

Note that there is a difference between being a ‘British Overseas Territories Citizen’ (BOTC) and a ‘British Citizen’.

First, to be a citizen of Anguilla, an individual should reside in the country for at least 5 years. A police report from any country the individual has lived in for more than 6 months is also required, along with a resume, to confirm that the individual is doing everything legally. A British Overseas Territories citizen is a person who is part of the colonies of the United Kingdom, because they or their parents or grandparents became citizens of those territories. A citizen of Anguilla would thus be a British Overseas Territories Citizen, but not a “British Citizen”.

Path to British Citizenship

The United Kingdom has privileged relations with many countries, either by connection through the Commonwealth, territory or other historical reasons. As such, nationals of these countries are entitled to British citizenship. The act of these people becoming British citizens is called “registration of citizenship” and is done by filing Application Form B (OTA). British nationals eligible for citizenship include British Overseas Citizens of Anguilla. In other words, becoming a citizen of Anguilla is a step away from becoming a citizen of the United Kingdom. It is therefore a route to British citizenship for those who wish to take advantage of this additional advantage.

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