Corporation Ownership of Turks and Caicos Property

Many investors choose to hold real estate through a Turks & Caicos Corporation or Trust. There are a number of advantages to holding real estate through a Corporation as local corporations pay no income tax on revenue earned, no capital gain tax on profits realized at the time of sale, and no inheritance tax when property is passed on, and there is no annual property tax. Another advantage of a Company owning the property is that a simple transfer of the shares in the Company can transfer the beneficial interest in the property. This can reduce transaction costs, and potential delays in transferring title at the Land Registry Office An Ordinary or Local Company, whose shareholders are known, must hold real estate. Trustees can provide nominee shareholder(s), director and Corporate Secretary, who are bound by the Turks & Caicos Islands strict confidentiality laws. This provides the investors with privacy of ownership. As a result, effective asset protection can be secured against unknown future creditors. This can reduce the anxiety of the professional who might live in fear of potential malpractice or negligence claims. For high net worth individuals, a suitable trust structure controlling a private cache of wealth allows for disposition of assets on the basis of choice rather than according to legal obligations which might be imposed following marriage breakdown, business misfortune, law suits, imposition of foreign exchange controls and laws which may seek repatriation of assets, or forced heir-ship laws of certain countries. For estate planning, there is no need to bequeath assets by will, and therefore no need for probate to be obtained in order for chosen heirs to have the benefit of those assets. This can avoid the publicity, cost, and delays associated with probate. Fees Fees can range for incorporation from $2,500.00 to $4,000.00, with an annual fee from $1,000.00 to $2,000.00. Annual fee includes government fees, nominee shareholders and Corporate Secretary, and annual filing and preparation of minutes, as required by law. Benefits obtained depend on the principal country of residence of the Buyer and that country’s anti-avoidance legislation. This generally changes on a yearly basis. Local counsel should be consulted.