Economy of the British Virgin Islands

About British Virgin Islands

British Virgin Islands is also otherwise known as Virgin Islands. It is a British Overseas Territory in the Caribbean community. Virgin Islands is situated to the east of Puerto Rico and is located in the Leeward Islands, of Lesser Antilles.

Economy of British Virgin Islands

The British Virgin Islands has an economy that is considered as one of the most prosperous economies in the entire Caribbean. British Virgin Islands is a very small area having a very small population, but this island country had the 19th highest GDP per capita, in the world. This report was placed by CIA World Fact book.

The size of this territory’s GDP was measured as per the global terms and as per the purchasing capacity per capita, in the area. British Virgin Island was ranked 215th out of total 229 countries.

The economy of British Virgin Islands is based on the Twin Pillars of financial services. These Twin Pillars generate about 60% of government revenue. The other main source of economy is the tourism industry, in this Island. This tourism industry generates the balance 40% of the total revenue.

Before the year 2007-2008, when the area suffered from a financial crisis, British Virgin Islands had produced a Government Budget surplus all through. British Virgin Islands had its largest ever budget deficit of US$ 29 million, in the year 2011.

The Business Environment of British Virgin Islands has been assessed as 34th in terms of global financial centres. This is the highest ranking of any off shore financial centre, and of any Latin American country.

The G-20 group of countries consider British Virgin Islands as a Tax Heaven, by describing its banking system as Opaque.

The Tourism Industry showed an influx of 922,372 tourists in the year 2015. Most of them were from the United States.

The Agriculture Industry has rising of Livestock as its main activity.

Economy of British Virgin Island is slowly coming back to normal.

Why form an offshore company in British Virgin Islands?

British Virgin Islands have always been famous for investors for saving taxes. Apart from providing luxurious infrastructure, beaches, cheap labour cost, it is also provides lucrative tax saving options. The latest legislation ensures that all domestic as well as international businesses end up paying zero income tax, capital gains tax, estate and inheritance tax. Company formation is also pretty easy as it takes only about 24 to 48 hours. Apart from this, you also have 100% confidentiality and anonymity clause which ensures that the name of directors and shareholders are not revealed.

Form an Offshore Company in British Virgin Islands

Benefits of Forming an Offshore Company in British Virgin Islands

  1. 0% tax on income, capital and corporate
  2. Zero sales tax
  3. 24x7 banking support
  4. Availability of Shelf Company
  5. Multiple currencies are used
  6. Local member not required for the position of Director
  7. Incorporate a company within 48 hours
  8. Filing annual returns not required
  9. Require only one director and one shareholder
  10. Your records cannot be accessed by public for information
  11. No audit requirement
  12. Exemption from taxes for domestic and international companies