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Quarterly | December 2019
Dixcart DomicilesA W O R L D O F O P T I O N S A W A I T
Cyprus | Guernsey | Isle of Man | Malta | Portugal | St Kitts & Nevis | Switzerland | United Kingdom
The perfect winter getawaySWITZERLAND
ST KITTS & NEVISHead to the Caribbean for your yearly supply of sun, sea and sand
WINTER ESCAPEplan your
PORTUGAL’S GOLDEN VISAInvesting in Venture Capital Funds is now more
popular than investing in Real Estate
CHRISTMAS TRADITIONSAROUND THE WORLD
Naturally a new year signals new beginnings. For contacts and clients interested in considering their residence and citizenship options, Dixcart Domiciles will be available to meet contacts and clients in person in Turkey, South Africa, Switzerland, UK, India and Russia according to our travel plan for the start of the year. Please do get in touch if needed. Wishing you all the best for the the rest of 2019 and a safe and excellent start to 2020.
Kind regards,
Michael Maxwell.
CONTENTSDIXCART
PROFESSIONALS
Dixcart Management (Cyprus) LimitedRobert Homem
Dixcart Trust Corporation Limited -
GuernseyBruce Watterson
Dixcart Management (IOM) LimitedSimon Kelly
Dixcart Management Malta Limited
Jonathan Vassallo
Dixcart Management Nevis Limited
Graham Sutcliffe
Dixcart Portugal LdaCarlos Santos
Dixcart Services SA (PTY) Limited -
South AfricaMichael Maxwell
Dixcart Switzerland SàrlChristine Breitler
Dixcart International Limited - UK
Peter Robertson
Dixcart Legal LimitedVincent Chung
CONTACT US
E D I TO R ’ S N O T E • D E C E M B E R E D I T I O N 2 0 1 9
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Editor’s Note
Escape the winter blues - head to Switzerland
An alternative winter escape: St Kitts & Nevis
What it is like to be an owner on Nevis?
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The Portuguese Golden Visa’s €350,000 Venture Capital Fund
Christmas traditions around the World
Lower tax cap for Guernsey newcomers
Residence, citizenship and relocation checklist
Upcoming travelContact us
Dear Readers,
Entering the festive season which signals the year end, we have kept this publication light and fun. Something for everyone’s taste of how and where to celebrate with friends and family is covered from snow capped Switzerland to sun drenched Nevis. That said, this is often our busiest time of year as clients use time off to reflect and then take action on the coming year. We have noted a sharp uptake of investors into Portuguese Venture Capital funds for Golden Visa residency purposes which had been pending for a while and I expect this trend to carry into the new year.
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ESCAPE THE WINTER BLUES
Switzerland is a perfect winter getaway; the high tips of the Alps sparkle with untouched early-morning pristine pistes, and the lowland cities glow with festive lights, Christmas markets and
warm hot chocolate stands. From the end of October onwards, the winter season is already in full swing, with visitors from all over the world flocking to Switzerland to spend a few weeks in the traditional Alpine towns and villages, or arriving for some of the best skiing, snowboarding and other winter activities in the world. Snow Polo is a particularly popular winter sport with the ultra-wealthy visiting Switzerland during this time of year. The Snow Polo World Cup St. Moritz is the only high-goal tournament on snow in the world and takes place every last weekend in January. The tournament lasts three days, with the magnificent backdrop of the snow-capped mountains, and there are plenty of social events taking place both on the lake and in the first-class hotels nearby. Either side of the tournament, the ski towns are bristling with world-class skiers and winter sport enthusiasts. There are an abundance of ski resorts in Switzerland, but the favourite remains St. Moritz. Full of
glamour and glitz, this gorgeous alpine village attracts individuals looking for ultimate luxury. It has hosted the winter Olympics twice and, alongside the polo, offers every winter sport you can think of. The next best ski resorts in Switzerland include: Andermatt for its position and powdery, soft snow, Verbier for its cluster of picture-perfect chalets, vibrant après ski and high-altitude terrain (attracting the very best skiers) and Zermatt – famous for its long ski runs and terrain suitable for all skill levels. Zermatt also has Europe’s most iconic mountain, the jewel of the Swiss Alps, the Matterhorn, which connects two countries and three resort towns. For those who do not ski, the Christmas spirit can be found everywhere across the country. Christmas markets line the streets of the cities; the most famous being in Basel which sits on the border between Switzerland, France and Germany. For a truly traditional Yuletide experience, visitors head here, where they can enjoy traditional cups of mulled wine with Basel’s famous läckerlie (a spicy biscuit made with nuts, candied peel and kirsch), age-old crafts, wooden toy-making stalls and other familiar Christmas activities and gifts. Another favourite hot-spot is the city of Geneva.
Geneva has several Christmas markets dotted around, each offering slightly different characteristics, but the most traditional-style Christmas market is on Rue du Mont-Blanc. Opening in late November, it is always busy, with the usual range of stalls as well as local designer-makers selling their own creations. If you are in Geneva the Sunday before Christmas, it is worth attending the Geneva Coupe de Noël – a bracing tradition, which has been active since 1934; around 1,500-2,000 swimmers dive into Lake Geneva to swim 125m. A fun tradition, but it still has its competitive elements with several participants taking part in fancy dress. Then there is the cosmopolitan city of Zurich. It is home to Europe’s largest indoor Christmas market, the Christkindlimarkt, which boasts a 15-metre sparkling Christmas tree at the entrance, decorated with 7,000 Swarovski crystals. And finally, Switzerland’s best kept secret with the rich and famous – Gstaad. It might appear a normal Swiss mountain village on the map, but here you will find the international jet-setting crowd during the winter months. Gstaad offers it all – the streets are lined with famous designer stores, art galleries and restaurants, and the mountain runs of Gstaad connect
to other nearby ski resorts and offer over 300km of trails. And all of this sits under the watchful and enticing eye of the Gstaad Palace Hotel. This luxury hotel has accommodated various celebrities and politicians and sits at the epicentre of social life in Gstaad; guests can enjoy the Fromagerie (world-class fondue) and famous GreenGo Club, which has a floating dancefloor hovering over an indoor swimming pool, looking out onto the snow-covered gardens of the palace. Switzerland is, without doubt, an all year-round location to visit, but if you are looking to escape for the winter months, Switzerland is a magical place to go. It comes as no surprise, that many high net worth individuals have visited Switzerland and decided to stay. And we haven’t even touched on the benefits of the lump sum basis of taxation, available to resident non-Swiss nationals who choose to move to Switzerland. This article only highlights a handful of places to visit, and if you would like more information about some of the locations we have not mentioned, or would be interested in finding out more about moving to Switzerland and what your basis of taxation might be, please get in touch: [email protected].
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IT'S NOT TOO LATE TO HEAD TO THE GREAT ALPINE HEART OF SWITZERLAND THIS WINTER AND DELIGHT IN THE WORLD-CLASS WINTER SPORTS ON OFFER. ENJOY THE CLASSIC SWISS SCENERY, HIGH PEAKS, SHEER VALLEYS, SNOW-CLAD VILLAGES AND COOL LAKES OVER THE FESTIVE PERIOD
Corviglia, St. Moritz, Switzerland
Snow Polo Tournament, St. MoritzImage: snowpolo-stmoritz.com
Gstaad Palace Hotel, SwitzerlandImage: palace.ch
Swarovski Christmas Tree, Zurich Main StationImage: eliaslimitless.com
St. Moritz, Switzerland
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Almost 20 years ago a dream came true. After sailing experiences in the Caribbean we revisited Nevis, known as the “pearl of the Caribbean” when it was still exploiting the sugar trade. Through a very warm welcome, meeting several long term residents on island, I started looking around for a possible purchase of a property. This search ended up owning one of the historical properties on the island. MorningStar Estate, named after the original plantation is a 3 acres’ piece of land at the edge of a village, up the hill with spectacular views over the ocean, facing plain west so we have the most gorgeous sunsets. It is located on the Gingerland side of Nevis, excelling in lush greenness, making gardening experiences a treat, due to the rich soils and the regular rain we get from the Mount Nevis peak. The property features one of the original windmills, turned into a 3 story guest house, the overseer’s house from where the works on the plantation were controlled and which had been transformed by its previous owner into the “Lord Nelson Museum”. And further some other outbuildings developed in the old ruins from the former plantation. The museum was the only house on the island visited by her Majesty, Queen Elizabeth II, when she toured the crown colonies in 1974. So this place is full of historic elements and
the challenge was to bring back some of its former beauty, redeveloping the different structures. For this we chose to use tropical hardwoods coming from Guyana, completely restructuring the interiors of the Mill, a complete rebuild of the Main house and also developing a 3 bedroom guesthouse. The ‘colonial’ style wood structures, porches, shingled roofs give this place its charm and cosiness. One of the botanical attractions of the property are the mature old trees it features. An original large cistern holding more than 100,000 gallons of water allowed to create an irrigation system, using collected rain waters to feed a lush tropical garden that we managed to develop over the years. Owning such property is a commitment and a work of love, finding the balance between modern comfort and preserving the historical aspects. Accolades from locals as much as from all our visiting friends reinforce our love and commitment for the island. Nevis has grown so much into a ‘hot’ tourist destination, blessed by its lush climate, nature and great variety due to the volcanic mountain of 3,000 feet, dream beaches and beautiful walks in the tropical rainforest. The local population with all its own history is wonderfully welcoming and accommodating. Since its independence in 1984 Nevis has been striving to create a stable and forward looking government embracing the challenges of our times, allowing for a welcoming structure for investors from abroad but also preserving the natural beauty of this unique island.
Konstantin von Vietinghoff-Scheel moved to Nevis 20 years ago and soon became the proud owner of MorningStar Estate. Read his story below:
Towards the last few months of the year, when we move into the colder winter months, St Kitts & Nevis becomes
one of the most popular Caribbean destinations as visitors flock to the islands in need of sun, sea and sand. With its golden sandy beaches, crystal-clear waters, spectacular vistas and rolling green hills, it is the perfect winter destination. Both islands are of volcanic origin and therefore enjoy a tropical climate, with little variation – but the best time to visit is December through to April. It might be peak season, but this does not deter the ultra-wealthy international jet-setters who visit the dual-islands of St Kitts & Nevis for the champion golf courses, luxury private beach clubs, and unspoilt gems; from hikes through the lush rainforests, to diving in the Caribbean Sea.
St Kitts & Nevis also offers December visitors an unforgettable experience, rooted in celebration and tradition, as this time of year is Carnival month, with the St Kitts & Nevis National Carnival taking place in the middle of the month. The streets come alive with the sounds of soca and calypso as the locals all get together to take part in the Christmas activities, parades and events, which ends with everyone congregating on the beach on Christmas Day. If you enjoy the islands of St Kitts & Nevis enough to apply for citizenship and become a passport holder, St Kitts & Nevis enjoys visa-free travel to more than 100 countries, including the EU Schengen area and the UK. It is extremely easy to travel to St Kitts & Nevis; the islands are approximately three hours by plane from Miami, four hours by plane from New York and eight hours by plane from London.
An Alternative Winter Escape
What it is like to be: An owner on
Nevis
"Tax advantages and
a top-notch lifestyle make Portugal the
place to be..."
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The Portuguese Golden Visa’s €350,000Venture Capital Fund
The Global Peace Index – published by the Institute for Economics and Peace – ranked Portugal the third most peaceful country in the world in 2019.
This was just the official confirmation of something that more than 15,000 High Net Worth Individuals and their families since 2009 have already discovered, making Portugal the new California where entrepreneurs, businessmen and women, movie stars (like Monica Bellucci and Michael Fassbender), singers (like Madonna), and designers (like Christian Louboutin) have found a piece of heaven on earth. It is fair to say that Portugal is the place to be these days; a fact several international publications like Forbes, CNN, BBC and the Financial Times – just to mention a few – have already attested to. But take it from the families who have moved to Portugal, also attracted by the personal tax programme (the Non-Habitual Resident Programme) or by the residency programme (the Golden Visa), who can be seen exploring and discovering Lisbon, Porto, the Algarve, or Funchal throughout the year. Portugal has also “stepped up its game”, not only in providing exceptional relocation conditions for families but also for businesses, by reforming its Corporate Tax
Code to meet international standards in 2014. Portugal undertook these reforms, including the tax benefits, following recommendations from the EU and OECD regarding tax transparency and compliance (FACTA, CRS and the new CFC EU legislation). This means that companies will view their tax framework as internationally competitive but also as transparent, compliant, and in line with the best international practices, which means a much more robust structure. All of this in a jurisdiction ideal for living. Naturally, the Golden Visa programme played a crucial part in this global interest in Portugal, since it enables non-EU individuals to obtain the right to reside in the country for at least five years. This also allows them and their families to travel freely to and from most European countries. A Portuguese Golden Visa can lead to permanent residence and/or Portuguese citizenship and the right to an EU passport at the end of the fifth year of being classified as a resident in Portugal; all this following from just one investment. To qualify for a Golden Visa, an individual must meet and maintain one of several qualifying investment options (financial investments, real estate acquisition, donations, or creation of jobs in the country), as specified
Carlos Santos explains the popular investment routes to gaining a Portuguese Golden Visa and explains why investing in a venture capital fund is overtaking the heated property market
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by the Portuguese Government. The Golden Visa, in order to be renewed, requires the families to be in Portugal an average of only seven days a year, during the five years of the programme, potentially never triggering Portuguese tax residency. One of the most popular investment routes is the acquisition of real estate with a value of at least €500,000. This popularity has led to an increase in the value per square metre. House prices in Portugal rose 3.3% in the first three months of 2019, compared to the last quarter of 2018; settling at €1,849 per square metre. This is an increase of 17% year-on-year, driving investors
providing the family with the opportunity to live in Portugal and with the freedom to travel within
the Schengen Space “ ”
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and families to look to other investment options. The investment route that is “taking off” is the investment into Venture Capital Funds. This investment route was introduced by the Portuguese Law 2017 (Law n.°102/2017, of the 28th August), under the following wording: “Capital transfer of the amount of 350 thousand Euros, or higher, for the acquisition of units of investment funds or venture capital fund of funds dedicated to the capitalisation of companies, capital injected under the Portuguese legislation, whose maturity, at the moment of the investment, is, at least, of five years and, at least 60% of the investments is realized in commercial companies with head office in national territory.”
This investment route has some unique advantages compared to other investment routes – depending on the client’s investment appetite:
• The investment does not trigger taxes similar to the ones that the client needs to bear when acquiring a property, such as transfer tax (on average 6%), stamp duty (0.8%), or the annual municipal tax (between 0.3% and 0.5%);• It is considerably lower compared to the level of investment required by the other investment routes for a Golden Visa (Eur. 350,000);• The investment is made into a Portuguese fund that is heavily regulated by the Portuguese authorities – the Portuguese Securities Market Commission (CMVM), Bank of Portugal, the external Fund Manager and the Tax Authorities - and, in addition the fund will be audited. This level of regulation will assure the investors that the fund will comply not only with
Portuguese legislation but also with the business plan approved by the unit-holders, and that the milestones and/or fund goals are achieved, at all times;• It is a tax-efficient investment, where several benefits are granted (for instance, in certain cases there is an exemption of withholding tax on the payment of the income generated by the fund to the unit holders), especially if the unit-holders are not tax resident, for example, when in Portugal;• Requires a very light “footprint” in Portugal, allowing a quick exit from the investment if needed. The reason for this lies in the fact that each fund has a dedicated 3rd party fund manager that, besides controlling the fund and reporting to the Portuguese authorities, takes care of the payments to the fund units and assist should there be the need to sell the owned units;• The potential gains generated by this investment are substantially higher than any other investment route for the Golden Visa.
The above demonstrates why Venture Capital Funds are on the rise when it comes to choosing an investment that will accomplish the goal of providing the family with the opportunity to live in Portugal and with the freedom to travel within the Schengen Space and which can also be a very interesting investment at a time where interest rates in Europe are at their lowest. For more information regarding any of the investments routes under the Portuguese Golden Visa, please contact Carlos Santos who is located in Portugal and can meet with you to discuss the various options: [email protected]. Alternatively, there are an number of articles on our website: www.dixcart-domiciles.com which you may find of interest.
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ChristmasTraditions Around the World
Christmas is a special time wherever you and your families might find yourself this year and in years to come. When considering a move of residence, there are huge factors to take into consideration. Citizenship, real estate, wealth planning and preservation, risk planning, schools, way of life, etc. But culture, traditions and special occasions are also a factor and this five-page article covers one of the most important times of the year - Christmas. We have chosen to cover the jurisdictions where Dixcart has offices, to give you first hand information.
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MALTA
Being a strongly Roman Catholic nation, religion is very apparent during Christmas time in Malta and adds a cheerful, spiritual element to December. Parish Churches hold regular Christmas concerts and services and handmade nativity exhibits can be found here and in many houses. Most Maltese houses are decorated with traditional cribs and pasturi (small clay figurines representing nativity figures, such as the wise men, angels and shepherds). Valetta is one of the most festive and lively cities in Malta, with sparkling Christmas lights and beautiful ornaments lining the streets. However, small towns and villages are also picking up the Christmas spirit and organising their own Christmas markets, filling the village centres with aromas of mulled wine and Christmas delicacies. Christmas carolling, street performances, local stalls and Christmas themed activities take place throughout the month, all over Malta and Gozo.
CYPRUS
Christmas in Cyprus is a time for family, long-standing traditions and a celebration of food. The season is in full swing by 6th December, the Feast of St. Nicholas, and lasts through to the 6th January, the Feast of Epiphany. Beautiful carols, known as ‘kalanda’, are sung, which have been handed down from Byzantime times, and on Christmas day, families will serve the usual Turkey roast dinner and Christmas cake. One of the most important ways to celebrate Christmas in Cyprus is through food, and delicious Cypriot delicacies can be found across the island. These include ‘kourabiedes’ (a light shortbread, made with almonds and, occasionally, brandy for flavouring), ‘melomakarona’ (Greek Christmas cinnamon and orange cookies, glazed in honey and stuffed with dates and nuts), ‘gennopitta’ (a special bread also known as ‘Christopsomo’ which is traditionally baked on Christmas Eve to be served on Christmas day), and on New Year’s day, ‘vasilopitta’ (a traditional cake especially made for Ayios Vasilios - “Saint Vasilis” - the Greek saint associated with Santa Claus). The children used to get their presents on New Year’s Day, in Cyprus, not Christmas day, so on New Year’s Eve, after the children have gone to bed, parents used to place Santa’s cake (‘vasilopitta’) with a coin inside, by the Christmas tree, lighting a candle on it and placing a goblet full of wine on the side, to be blessed by Saint Vasilis. This is now, like most countries, a tradition which takes place on Christmas Eve.
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ST KITTS & NEVIS AND THE CARIBBEAN - THE ULTIMATE CHRISTMAS CARNIVAL
Christmas time in the Caribbean is something truly special. It is extremely common to go away for the festive period to escape the cold, short days that December brings, and there is no where more beautiful to jet off to than the twin islands of St Kitts & Nevis. A two-month long celebration of music, dancing, traditions and colour, the Sugar Mas Carnival has given St Kitts & Nevis a festive celebration to remember. Named after the sugar cane (which for a long time was the island’s most important and famous resource) and mas (short for masquerade), the Sugar Mas Carnival usually begins at the end of November, and finishes in January. On Christmas day, the carnival goers and the parade of "Moko-Jumbies (clowns in headdresses who dance on stilts), take rest to celebrate Christmas with their families. During the morning joyful, festive sounds can be heard from Church services before everyone heads to the beach!
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SWITZERLAND
From baking Swiss cookies from generations of family recipes to homemade advent wreaths, Christmas in Switzerland is a well-celebrated tradition. Advent marks the start of the Christmas period, and in some of the smaller villages, the locals decorate their houses with ‘real’ advent calendars; ‘Advent Windows’ which are revealed each day during the countdown to the 24th December. Often music and Christmas carols are sung and homemade cookies and hot drinks are shared. Unlike many other countries around the world, Saint Nicholas (known in Switzerland as ‘Samichlaus) visits on the 6th December, rather than the 24th December. He does not bring gifts (families do share these on the 25th December), but he will bring treats of chocolates, peanuts and mandarins for everyone to enjoy.
PORTUGAL
The Portuguese have their main Christmas celebrations on the evening of the 24th of December. All generations of the family gather for a special (late) evening meal of Bacalhau (codfish) and their traditional Christmas cake called the Bolo Rei (King Cake). The meal tends to finish very late and is then followed by midnight Mass. The Christmas gifts are given to each other after the Church service or at midnight (much to the delight of Portuguese children). Christmas day for the Portuguese is a much more low-key day, similar to the UK's boxing day, and all family members often go to Church before sitting down to a long Christmas lunch which extends into the afternoon. Christmas is a national holiday for the Portuguese so many restaurants and bars will be closed.
UK
Christmas traditionally begins with the season of Advent (a tradition celebrated by Christians in the four weeks leading up to Christmas). Advent calendars are given as gifts to count down the days of advent (1 December - 24 December). Each day there is a ‘window’ to open, with a small chocolate behind. However, nowadays, the start of Christmas for many is usually signified by the switching on of the Christmas street lights across the country - the most famous in London being the Oxford Street Christmas lights. Families decorate their homes with Christmas trees and festive decorations, attend Carol services, visit local Christmas markets, and enjoy mince pies and mulled wine. Children write letters to Father Christmas, which are left in fireplaces to be magically carried away, take part in school nativity plays, and leave stockings on fireplaces or on the ends of beds, to be filled with presents on Christmas Eve. On Christmas Day, families sit down to Christmas dinner, a lunchtime meal of roast turkey and “all the trimmings”, followed by Christmas pudding (fruit cake covered in brandy liquor and set alight). The dinner table is decorated with Christmas crackers (cardboard tubes covered in colourful paper wrapping which, when pulled by two people, produces an explosive ‘pop’ and reveals gifts of paper hats which are worn throughout the meal, a small trinket or gift, and a riddle or joke to be read aloud) - a well-loved British tradition since 1847. At 3pm, families across the country switch on their televisions or radios to listen to the broadcast of the Queen’s Speech, where the Queen addresses the nation and the Commonwealth - a British tradition which is heard by millions of people all over the world.
The Crown Dependencies: the Bailiwick of Guernsey, the Bailiwick of Jersey and the Isle of Man do not form part of the UK but they do follow the same Christmas traditions. Away from the hustle and bustle of the UK cities, Guernsey and the Isle of Man both offer the perfect short winter retreat to celebrate a quintessential Christmas with family and friends. Visitors to Guernsey can meander down the fairy lit alleyways, potter around the street markets in St Peter
Port’s historic square, or stop and listen to the Christmas carollers that adorn the shopping centres, full of boutique stores and local restaurants. There are also plenty of family-friendly activities from ice skating at Le Friquet Garden Centre or attending several annual pantomimes, including the famous GADOC pantomime (The Guernsey Amateur Dramatic and Opera Society), which is a favourite on the Island. Other festive activities include the Folk & Costume Museum’s Christmas shop, which offers a mix of traditional festive gifts, a sightseeing trip around the Island on the Christmas Lights tours, or head to the ‘Most Wonderful Time’ Christmas show at St James Concert Hall. Last but not least, watch (or take part in) the Christmas Day Polar Swim at the outdoor pools of La Vallette on Christmas Day morning. If that is not adventurous enough, there is always the annual Guernsey Boxing Day Dip at Cobo Bay, where hundreds of swimmers take to the Channel’s icy waters to raise funds for charity. The Isle of Man celebrates the same Christmas traditions as the UK - but with a Manx twist. The culture of the Isle of Man is heavily influenced by its Celtic heritage, Manx, however with its proximity to the UK and historic immigration of citizens from the mainland, British influence has been prominent for many years. Some Manx Christmas traditions still exist on the Island; particularly “Hunt the Wren”. Each year on St Stephen’s Day (26 December), communities across the Island group together to dance and sing around a decorated wren pole. Today, the Hunt the Wren tradition has become an event to attend across the Island. Professional Manx Dance Groups often perform at these events; the most popular one taking place in Douglas.
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GUERNSEY AND THE ISLE OF MAN
Guernsey can often be overlooked as somewhere to relocate to in comparison to other countries around the world, however it has so much to offer and there are a number
of very attractive tax reasons why it shouldn’t be ignored – there is more to the Island than just the breath-taking views and coastline. Guernsey is an independent jurisdiction, with a straight-forward and beneficial fiscal regime. Being autonomous from the UK, it has its own democratically elected Parliament with full control over island laws, budgets and levels of taxation, and has introduced several appealing changes to the tax system over the last few years, especially for individuals relocating to the Island. There is no capital gains tax, inheritance tax, wealth tax, VAT or goods and services tax in Guernsey and individuals have a tax-free allowance of £11,000 on Guernsey source income. Income tax is charged at a flat rate of 20%. Residence is dependent on the number of days spent on the Island and there are different levels of taxation available. In 2018, Guernsey proved further its intention to encourage high net worth individuals to the Island by introducing a new, very advantageous, tax cap for newcomers. New residents who purchase an ‘Open Market property’and pay a minimum £50,000 document duty (currently the duty payable on a property worth £1.35million), can benefit by capping their Guernsey source income tax liability at £50,000. The tax cap applies in the tax year of permanent arrival in Guernsey, and the subsequent three tax years. In addition to the considerable tax advantages, there are some other great reasons to relocate to Guernsey. Located just off the northern coast of France, the island enjoys a lovely climate with warm long
Lower tax cap for
Guernsey newcomers
Image: manxfolkdance.org.uk
Image: visitguernsey.com
Image: bbc.co.uk
IN 2018 GUERNSEY INTRODUCED A SIGNIFICANT
TAX CAP FOR NEW RESIDENTS TO THE ISLAND
summers and short winters. Almost all outdoor activities are available on the island, so if you, and your family, enjoy an outdoor lifestyle, Guernsey is a fantastic place to choose for your next move. It is also a hop, skip and a jump away from the UK, with only forty-five minutes to London by air. The currency is sterling, the time zone is the same as Britain and it combines many of the reassuring elements of UK culture with the benefits of living abroad. It has a high standard of living, with a wide range of attractive residential properties, low crime rates, excellent education system, a thriving hospitality industry and eclectic social calendar. If Island life interests you and you are considering a move to Guernsey or would like to visit, please get in touch with our Guernsey office for a quick chat or coffee at [email protected]. We also work alongside Locate Guernsey and can put you in touch with them for further tips about the Island and what you can expect from this alluring, family friendly destination.
R E S I D E N C E , C I T I Z E N S H I P & R E L O C A T I O N C H E C K L I S T
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PRIOR TO ARRIVAL IN NEW COUNTRY:
Consider Practical Issues:
1. Travel documents (visas)2. Formal enrolment in country/jurisdiction of
‘arrival’, including communication with tax authorities, healthcare, schooling, etc.
□ Succession and Inheritance:
1. Confirm which laws govern succession and whether a choice of different jurisdiction law is available.
2. Confirm whether marital/family laws are affected and whether a choice of different jurisdiction law is available.
3. Review estate planning documents (wills, succession and prenuptial documents) and consider the interaction of wills, appropriate for different jurisdictions.
□ Implications of Transferring Physical Wealth:
1. Family heirlooms, jewellery and works of art (possible ban on export or right of first refusal, etc.). Are import duties applicable?
□ Before Exit:
1. Confirm arrangements that affect heirs and family that remain behind.
2. Optimal timing of loss of tax residence and exit
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A move of residence can provide opportunities to review your affairs and holding structures. There may well be potential to implement wealth preservation and inheritance provisions, and advantageous strategic investment structures.
Carefully considered pre-exit and pre-arrival planning is essential to ensure a smooth and efficient move.
charges. 3. Consider establishing new banking
arrangements to segregate income and gains, if this is relevant to the new residence regime.
□ Before Arrival:
1. Seek early tax advice from a professional advisor.
2. Take advantage of any special tax regimes that are available.
3. Review if there are any changes to controlled foreign company rules and what the effects may be.
4. Ensure that previously established companies, trusts, life insurance policies, etc. are compliant.
□ Gifts and Donations:
1. Confirm whether gifts or donations should be executed in advance of acquiring a new residency.
ONGOING:
□ Annual review of estate planning documents (wills, succession and prenuptial documents).
□ Annual review of trusts arrangements, structures and bank accounts.
□ Annual review of any changes to tax laws and implications in relation to existing agreements and structures.
CyprusDixcart Management (Cyprus) [email protected]
GuernseyDixcart Trust Corporation [email protected]
Isle of ManDixcart Management (IOM) [email protected]
Malta Dixcart Management Malta [email protected]
PortugalDixcart Portugal Lda - Lisbon | [email protected]
South AfricaDixcart Services SA (PTY) [email protected]
St Kitts & NevisDixcart Management Nevis [email protected]
SwitzerlandDixcart Switzerland Sà[email protected]
United KingdomDixcart International [email protected]
D I X C A R T D O M I C I L E S L I M I T E D
• India• Italy• Russia• South AfricaTravel Plans
2020 • Switzerland• Turkey• USA• UK
1st Quarter
Arrange a meeting: [email protected]
www.dixcart-domiciles.comThis newsletter has been prepared by Dixcart Domiciles Limited for the information of
clients and associates. Whilst every care has been taken in its preparation, no responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may
change from time to time. Issued December 2019.
