• IN584 Annual Dixcart Seminar 2019 - The Future Of International Succession Planning

    Seminar Topic

    On Thursday 28 March 2019, Dixcart hosted its Annual Tax and Trust Seminar; this year titled: ‘The Future of International Succession Planning’.

    Sean Dowden, Managing Director of Dixcart Portugal, chaired the Seminar and began by introducing the Dixcart Group and covering some of the key reasons why succession planning is such a necessity.

    The transfer of wealth to the next … more

  • IN583 An Opportunity For Organisations To Legally Produce Medicinal Cannabis In Malta

    Background

    A new legislative initiative in Malta means that it is now possible to grow and process cannabis (marijuana) in Malta, as long as it is for medical use. This presents an opportunity for entrepreneurs and investors.

    Due to its geographical position Malta is also conveniently placed, as a potential distribution hub for medical cannabis.

    Entities need to apply to produce and/or process … more

  • IN582 How Can Individuals Move To Switzerland And What Will Their Basis Of Taxation Be?

    Background

    Many foreigners move to Switzerland for its high life quality, outdoor lifestyle, excellent working conditions and business opportunities.

    A central location within Europe with a high standard of living, as well as connections to over 200 international locations via regular international flights, also make Switzerland an attractive alternative residence.

    Many of the world’s largest … more

  • IN581 'SIGI' - A New Type Of Portuguese Real Estate Company And Its Benefits

    Background

    Recent interest from the international financial and investment community in  Portuguese real estate has motivated the Portuguese Government to introduce a new investment vehicle, exclusively dedicated to real estate investment.

    Introduced in February 2019, the ‘Sociedades de Investmento e Gestao Imobiliaria’, (‘SIGI') introduces a number of features generally associated with Real … more

  • IN580 Reforms to UK Investor Visa Category and New Entrepreneur Visa Routes

    On 7 March 2019, the UK Home Secretary laid Statement of Changes to the UK Immigration Rules before Parliament, with these changes being introduced from 29 March 2019.

    The changes primarily concern the closure of the Tier 1 (Graduate Entrepreneur) and Tier 1 (Entrepreneur) categories to new applicants, and these are replaced by the Start-up, and Innovator visa routes. The Tier 1 (Investor) … more

  • IN579 Guidelines: Determination of the Place of Supply - Hiring of Pleasure Boats in Malta

    The Malta Commissioner for Revenue has just published the guidelines that are to be used to determine the place of supply for the hiring of pleasure boats. These will be applicable, retrospectively, for all leases commencing on or after 1 November 2018.

    These new guidelines are based on the fundamental VAT principle of ‘use and enjoyment’ and provide the mechanism to determine the amount of VAT … more

  • IN578 UK Immigration - What Might Be Expected in 2019

    UK laws generally change at a fast pace and this is particularly the case when it comes to immigration.

    Brexit

    Brexit is very much a live issue and is still scheduled to take place on 29 March 2019. The terms of the UK’s departure from the EU are unclear but a few possibilities, in relation to immigration, are outlined below:

    the current draft Withdrawal Agreement is ratified by the UK and … more

  • IN577 Luxury Assets such as Aircraft and Yachts and Preparation for Brexit

    Aircraft and Yacht Registration and VAT Considerations

    The recent political upheaval with the United Kingdom leaving the European Union (Brexit) at the end of March 2019, has left many yacht and aviation owners with a potentially unquantified problem (both financially and legally).

    The VAT and registration (aircraft and/or yacht) arrangements in place before Brexit, may need consideration and … more

  • IN576 Key Measures Relating to EU ATAD Now Implemented in Malta

    As a member of the EU, Malta has implemented the EU Anti-Tax Avoidance Directive (ATAD) and has incorporated it into domestic legislation.

    Malta incorporated the ATAD measures into its domestic legislation at the beginning of December 2018 through implementation of Legal Notice 411, which includes the following:

    an interest limitation rule;

    general anti-abuse rules (GAAR);

    controlled … more

  • IN575 Increased Cash Rebates Film Production in Malta

    Background

    The Maltese Government is committed to promoting the film production sector and cash rebates can be claimed, as a financial incentive, to the growing Audio-visual Industry in Malta.

    What Rebates are Available?

    Starting from January 2019, qualifying companies can receive a maximum 40% cash rebate for film production in Malta.

    The cash rebates are rebates on the expenses in Malta, … more

  • IN574 Guernsey - Why Is It a Centre of Fintech Excellence?

    Background

    The current digital age brings with it new challenges and opportunities for the finance sector. As far back as 20th July 2015 the States of Guernsey released their report ‘A strategic vision for FinTech’ drafted by PwC and contributed to by more than 70 representatives of local industry and the FinTech sector including Dixcart Trust Corporation Limited.

    FinTech, as defined by the … more

  • IN572 Individual Taxation In The UK

    Liability to UK tax is broadly determined by the application of the concepts of "domicile" and "residence".

    Domicile

    UK law relating to domicile is complex and differs from the laws of most other countries. Domicile is distinct from the concepts of nationality or residence. In essence, you are domiciled in the country where you consider you belong and where your real and permanent home is. … more

  • IN571 Routes To UK Residence And Citizenship

    Individuals granted a Tier 1 (Entrepreneur) visa or Tier 1 (Investor) visa under the existing rules before/on 28 March 2019 are generally unaffected by the new rules effective from 29 March 2019. For more information, please refer to Dixcart Article: IN580 Reforms to UK Investor Visa Category and New Entrepreneur Visa Routes

    Who Can Move to the UK?

    EEA nationals and their family members have … more

  • IN570 Armed Guards To Be Allowed On Board Portuguese Flagged Ships - Where Piracy Is Prevalent

    New Law

    On 10 January 2019, the Portuguese Council of Ministers approved a law to allow armed guards to sail on Portuguese flagged vessels.

    This measure is long-awaited by the International Shipping Registry of Madeira (MAR) and by ship owners registered within it. The increase in financial loss due to hijackings and ransom demands, and the risk to human lives, as a result of hostage taking has … more

  • IN569 Using Switzerland For Asset Protection In An Increasingly Challenging World

    Background

    Switzerland is an incredibly attractive jurisdiction for international companies and high net worth individuals, seeking stability (political and economic).

    Taking into account the many factors that influence the choice of jurisdiction, the case for Switzerland is a strong one.

    Reasons Why Switzerland is a Favoured Location

    Political, financial, social and economic stability … more

  • IN568 Portuguese Golden Visa - Investment Route And The Non-Habitual Residents Regime

    Background

    Portugal is being re-discovered as a destination to relocate to, with iconic cities such as Lisbon and Porto, and stunning coastal areas, for example, the Algarve. It also offers very easy access to the rest of Europe.

    Portugal is increasingly recognised as an international hub with 71 Double Taxation Agreements and 49 Investment Protection Treaties.

    The Golden Visa

    The Portuguese … more

  • IN567 Moving To Italy - The Resident Non-Domiciled Tax Regime

    Background

    During 2017 the Italian Government introduced a new tax regime: The Resident Non-Domiciled Tax Regime (also known as the "Flat Tax Regime"), with the aim of attracting high net worth individuals who want to relocate to Italy. 

    The new legislation introduced a key change to the general principle of worldwide taxation for Italian tax residents. According to these provisions an … more

  • IN566 Significant Tax Advantages Available To Individuals Moving To Guernsey

    Background

    Guernsey is one of the Channel Islands and is situated in the English Channel, close to the French coast of Normandy.

    Whilst retaining very close links to Britain, Guernsey is independent from the UK and has its own democratically elected parliament which controls the island's laws, budget and levels of taxation.

    What Tax Advantages are Available to Individuals Moving to Guernsey? … more

  • IN518 - Why the Madeira International Shipping Register (MAR) is so Attractive and the Advantages of Registering a Vessel in Madeira

    Background

    The objective of the Madeira International Shipping Register (MAR) is to offer a credible alternative to other international registers. The high quality and safety standards of a conventional register have been maintained within an attractive tax environment designed to encourage inward investment to the island of Madeira. Vessels registered with MAR carry the Portuguese flag and are … more

  • IN450 - A Move of Residence

    Please note that as a general principle EEA citizens are free to move to other EEA countries. Switzerland is in the Schengen Area and as such EEA citizens can move there and vice versa. The residence schemes detailed (excluding St Kitts & Nevis) are therefore applicable to non-EEA individuals for each of the countries featured.

    Please note, however, that where freedom of movement is not the … more

  • IN563 The Option of A Second Passport - St Kitts & Nevis Citizenship by Investment

    Individuals and families are becoming increasingly mobile and the ability to hold a second passport is becoming more relevant. The Caribbean is an attractive destination for a number of reasons, including the relaxing lifestyle, beautiful scenery and the climate. There are also opportunities to hold a second passport, even if the immediate intention is not to relocate to the Caribbean.

    Why do … more

  • IN564 Update: The Proposed Tax Reform Of Swiss Companies

    Background

    Reform of the taxation of Swiss companies has been on the agenda for a considerable length of time. On 28 September 2018, the final draft of the Federal Act on Tax Reform and "AHV" Financing ("TRAF") was approved by the Swiss Parliament.

    AHV is an obligatory payment for every individual over the age of 20 living in Switzerland. It is an insurance for old age and/or for the bereaved. … more

  • IN565 Why Use The Azores (Portugal) For Yacht Importation?

    Background

    The Archipelago of the Azores is composed of nine volcanic islands and is situated in the North Atlantic, about 1,500 kilometres west of Lisbon. These islands are an autonomous region of Portugal.

    What Advantages are Offered by the Azores for Yacht Importation into the EU?

    The standard rate of Portuguese VAT is 23% but the Azores benefits from a reduced VAT rate of 18%.

    In … more

  • IN561 Key Aspects - Economic Substance Requirements For Guernsey

    1 Introduction

    Like other offshore jurisdictions, Guernsey will be implementing new legislation introducing economic substance requirements for companies in Guernsey. This briefing note sets out key aspects of the Guernsey Government proposed legislation,  noting that further, more comprehensive guidance notes, will follow in due course.

    The proposed legislation is relevant to all companies … more

  • IN562 New Substance Requirements For Isle Of Man Companies - Effective 1 January 2019

    The Isle of Man Treasury has published a draft of the proposed Income Tax (Substance Requirements) Order 2018. This draft Order will, once final, and if approved by Tynwald (in December 2018), have effect in respect of accounting periods commencing on or after 1 January 2019.

    This means that from January 2019, companies engaging in “relevant activities” will have to demonstrate that they meet … more

  • IN556 The Brazil And Switzerland Double Tax Treaty: Why Is It So Significant?

    Background

    The Brazilian and Swiss Governments signed a Double Tax Treaty (DTT) on 3 May 2018.

    Switzerland is one of the biggest investors in the Brazilian market and Brazil and Switzerland have already signed an Automatic Exchange of Information Agreement, which came into force on 1 January 2018.

    This new treaty, follows current OECD standards, including Base Erosion and Profit Shifting (BEPS) … more

  • IN557 Use Of A Guernsey Or Isle Of Man Family Investment Company To Hold UK Assets

    What is a Family Investment Company?

    A Family Investment Company (“FIC”) is a company in which the shareholders are family members, often from different generations. FIC’s enable families to pass UK assets out of their individual estates for inheritance tax purposes, whilst retaining control or passing control to professional directors to manage the company.  FIC’s also provide asset protection. … more

  • IN558 Guernsey And The Isle Of Man - Implementation Of Substance Requirements

    Background

    The Crown Dependencies (Guernsey, Isle of Man and Jersey) have introduced economic substance requirements, for companies incorporated, or resident for tax purposes, in each of these jurisdictions, effective for accounting periods starting on or after 1st January 2019.

    This legislation has been designed to meet the high level of commitment made by the Crown Dependencies, in November 20 … more

  • IN559 UK Budget - 29 October 2018: Summary

    Background

    The UK Budget, as announced on 29 October 2018, put in place certain measures that had previously been announced but not implemented. In addition, it was a more positive Budget than many had anticipated.

    The key measures, a number of which will have an impact on individuals investing into the UK from overseas, are detailed below.

    Commercial Real Estate

    It was confirmed that … more

  • IN560 UK 'Representative Of An Overseas Business Visa' Key Advantages And General Requirements

    Background

    As detailed in a number of previous Information Notes, there are several different UK visa options available to non-EEA nationals, to come to the UK to live and work.

    What is a ‘Representative of an Overseas Business Visa’?

    The “Sole Rep Visa” as it is informally known, is a route designed for senior employees who are non-EEA nationals, enabling them to move to the UK and establish … more

  • IN552 Nevis - What Does This Jurisdiction Offer Companies And Individuals?

    Background

    Nevis is a leading international Caribbean financial centre with a good reputation and excellent standards.

    The jurisdiction of St Kitts & Nevis offers options in terms of international companies, private trustee companies and international trusts and foundations. It also offers an attractive passport scheme (recipients do not need to reside in St Kitts & Nevis), which is of … more

  • IN553 The Madeira (Portugal) Free Trade Zone - What Tax Benefits Does It Offer And Substance Requirements

    Background

    The Madeira archipelago is part of Portugal and is located in the Atlantic Ocean, 978 km southwest of Lisbon.

    During the past decade, Portugal has taken several steps to enhance its attractiveness to international business and high net worth individuals. Partially thanks to the Non-Habitual Residents tax programme implemented in 2009 and the Golden Visa residency programme introduced … more

  • IN554 Cyprus-South Africa Double Tax Agreement - Why Is It So Attractive?

    South Africa, currently, hits the headlines for the ‘wrong’ reasons but it remains a jurisdiction where investment, in the correct manner, can be attractive.

    The South African economy offers a diversity of sectors and industries. It has a modern and extensive transport infrastructure and  labour costs are priced competitively.

    These factors, together with the country's significant natural … more

  • IN550 - Visas Available To Non European Economic Area (EEA) Individuals Allowing Them To Work In The UK

    Background

    There are a number of visas, enabling non-EU individuals to live and work in the UK, that are less well known than the Tier 1 (Entrepreneur) Visa and Tier 2 (General) Visa. 

    This article considers these options, which include: ‘Representative of an Overseas Business Visa’, ‘Tier 2 Sponsor Licence’, ‘Van der Elst Visa’ and ‘Short-Term Business Trips’. A number of these visas can … more

  • IN551 - UK Tax Considerations For Short Term Business Visitors To The UK And For Non-UK Resident Directors Of UK Companies

    Background

    When individuals not resident in the UK are short term business visitors to the UK and/or are directors of UK companies, the individual’s UK tax position needs to be considered carefully. UK tax may be due, but there are a number of options that might reduce or negate the UK tax payable.

    Short Term Business Visitors

    Short-term business visitors are individuals who are not resident … more

  • IN549(R) - КЛЮЧЕВЫЕ ПЕРСОНАЛЬНЫЕ ПОДОХОДНЫЕ НАЛОГИ И ПОТЕНЦИАЛЬНЫЕ ПРЕИМУЩЕСТВА ДЛЯ НЕ ДОМИЦИЛИРОВАННЫХ РЕЗИДЕНТОВ СОЕДИНЕННОГО КОРОЛЕВСТВА

     

    Ряд стран предлагают режимы «налогообложения на основе перечисления, чтобы заинтересовать богатых людей в переезде из других стран, таких как Россия. Эти люди известны как «не домицилированные резиденты». Проще говоря, не домицилированный резидент - это человек, который не живет в своей стране «гражданской принадлежности».

    Режим перечисления в Соединённом Королевстве является особенно привлек … more

  • IN549 - Key Personal Taxes and Potential Advantages for UK Non-Doms

    A number of countries offer ‘remittance basis of taxation’ regimes to attract wealthy individuals to re-locate from other countries, such as Russia. These individuals are known as ‘non-doms’. Very simply expressed a non-dom is an individual not living in his/her country of ‘origin’.

    The UK remittance regime is a particularly attractive example and although the rules have changed … more

  • IN546 - Maltese Shipping - The Tonnage Tax System and Advantages for Shipping Companies

    Over the past decade, Malta has consolidated its status as an international, Mediterranean centre of maritime excellence. Currently Malta has the largest shipping register in Europe and the sixth largest in the world. In addition, Malta has become a world leader in terms of commercial yacht registration.

    In order to avoid the risk of shipping companies relocating or flagging to low-tax countries … more

  • IN502 - The Remittance Basis of Taxation in Malta - A Minor Change

    The Maltese Government introduced modifications to the remittance basis of taxation on 1 January 2018.

    Background

    Malta offers an extremely attractive remittance basis, whereby a resident non-domiciled individual is only taxed on foreign income if this income is received in Malta or is earned or arises in Malta.

    A Tax Change for Resident Non-Domiciled Individuals

    Changes, introduced at the … more

  • IN545 - Malta's Notional Interest Deduction Regime - Which Types of Company are Most Likely to Benefit?

    Malta introduced the Notional Interest Deduction Regime (NID) on 1 January 2018. On 8 August 2018, the Guidelines in relation to NID were updated, in particular the treatment of NID between related companies.

    What is NID?

    NID is an innovative way in which companies can, in the correct circumstances, reduce their tax liabilities. This option is of greatest interest to companies with large equity … more

  • IN544 - The Approach to Taxation in 'Offshore' Centres is Changing - For The Better

    The EU Code of Conduct Group (Business Taxation) (“the COCG”) have been working with the Crown Dependencies (Guernsey, Isle of Man and Jersey) to review ‘economic substance’. The EU Code Group concluded that the Isle of Man and Guernsey were compliant with most of the EU principles of good tax governance, including the general principles of “fair taxation”. However, one area that raised concern … more

  • IN543 - Guernsey - One of the World's Premier International Finance Centres

    The Island of Guernsey offers Private Clients confidence in relation to the preservation, protection and growth of their wealth.

    Guernsey is a well regulated jurisdiction situated in Europe, between the United Kingdom and France, with excellent travel links to both countries.  It is a tax neutral, politically stable jurisdiction with an excellent reputation and a network of multi-jurisdictional … more

  • IN541 - Key Features of the New Double Tax Agreements between the UK and Guernsey, and the UK and the Isle of Man

    At the start of July 2018 three new Double Tax Agreements (DTAs) were announced between the UK and the Crown Dependencies (Guernsey, Isle of Man, and Jersey). The three DTAs (from each of the islands) are identical, which was a key aim of the UK Government.   

    Each of the DTAs cover clauses relating to Base Erosion and Profit Shifting (’BEPS’) and they comply with new international tax standards, … more

  • IN540 The Taxation of UK Residential Property - What is the Current Situation?

    The past few years have seen dramatic changes to the taxation of UK residential property in respect of both UK and non-UK residents and detailed below is a summary of the current position (as of July 2018) and proposed changes. 

    It is important that existing structures (particularly those with foreign company ownership) are continually reviewed to ensure that the anticipated benefits of such … more

  • IN539 Recent and Forthcoming Changes: UK Commercial Real Estate and Foreign Ownership

    Tax on Rental Profit

    Overseas investors who are not tax resident and do not carry on a trade in the UK are only liable to pay basic rate income tax (currently 20%) on rental profits during their period of ownership of a UK commercial investment property.

    To achieve the favourable tax treatment outlined above, it is important to use an offshore company to acquire the UK property and that … more

  • IN536 - Advantages of Cyprus Foreign Interest Companies - Including the Right for Employees to Reside in Cyprus

    Background and the Cyprus Permanent Residence Scheme

    Cyprus offers a Permanent Residence Scheme whereby individuals are granted permanent residence by acquiring property in Cyprus with a minimum value of €300,000. The Dixcart office in Cyprus can provide comprehensive details regarding the Cyprus Residence Scheme.

    This programme is proving popular but is not always appropriate as individuals … more

  • IN538 - Imminent Introduction of the Portuguese Tonnage Tax Scheme for Ships - What benefits will it offer?

    The Portuguese tonnage tax and seafarer scheme was approved by the European Commission on 6 April 2018, in line with EU State aid rules, in particular the Guidelines on State aid to maritime transport. The Portuguese measures will enhance the competitiveness of the Portuguese shipping sector and, simultaneously, protect know-how and jobs in the EU maritime transport sector.

    The law proposal had … more

  • IN535 - Consideration of the Jurisdiction of Nevis for the Control and Management of Companies outside the EU

    The Requirement for Substance

    In recent times a number of leading European countries have sought to limit the use of holding or associated companies outside the EU.  

    The main reason given has been the lack of real substance being demonstrated in the countries outside the EU.

    A Workable Solution to the Problem

    Advantages continue to exist through the use of holding companies outside the EU. … more

  • HN - Three Bills on ‘Distributed Ledger Technology’ (relating to Crypto Currency and Bitcoin) have been Approved by the Malta Parliament

    On 26 June 2018, the Maltese Parliament unanimously approved three Bills.

    The Virtual Financial Assets Bill -which provides regulation on virtual currencies and initial coin offerings (ICO)

    The Technology Arrangements and Services Bill - which is concerned with the registration and certification of technology service providers

    The Digital Innovation Authority Bill– which will establish the … more