Anguilla Residency Program Offers New Tax Haven For Investors

Anguilla, a British territory in the Caribbean, is a new member of the group of countries offering citizenship-by-investment. It could well become a prominent destination for high net worth investors, particularly North Americans since it can be an attractive tax haven. But its shortcoming is that it only offers residence to start, with citizenship being a longer-term matter.

There is a difference, to be sure, between tax avoidance and tax evasion. We’re obligated to pay taxes and it can be a crime to evade them. But there are some people who try to avoid paying taxes when they can, including high net worth investors who are familiar with this difference and appreciate it. This is where Anguilla’s benefits come into play.

The advantage Anguilla offers is that it has no direct taxation, with no income tax, capital gains tax, gift tax, net worth tax, inheritance tax, or corporate taxation. To become a permanent resident and take advantage of these tax benefits, applicants must invest in an approved government program, spend a minimum of 45 days in Anguilla each year, establish genuine links to the country, such as by opening bank accounts, establishing memberships, etc., and spend no more than 183 days per year in any other country. Applicants who can meet these conditions can get Anguilla permanent residence often as quickly as in about three months.

Three Options To Choose From

There are three options for the Anguilla Select Residence Program – the program you go through before you can apply for citizenship.

A. Permanent Residency By Donation.

The donation option requires that you make a donation of at least $150,000 U.S. to the capital development fund. There is also an extra $50,000 donation per dependent. An additional application fee of $ 3000 U.S. for a family of up to 4 persons applies, with $500 for each additional family member. There is also a $ 7500 due diligence fee per adult as well as $ 3000 for each dependent. These fees, excluding the donations, apply to all the options below.

B. Permanent Residency By Real Estate.

As for the real estate option, for a family of four, you need to purchase a home worth at least $750,000 U.S. An additional $100,000 U.S. investment will be required for each additional person. Investors can submit for conditional approval of the application prior to committing to the investment. The property needs to be retained for a minimum of 5 years.

C. Anguilla Tax Residency.

Last but not least, the annual tax residency program requires the individual to have a house worth at least $400,000 U.S. for a minimum of five years. This enables the investor to gain worldwide tax residency in Anguilla for an annual payment of $75,000. The real estate must be held for the duration of the residence 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 keep 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 in it, eventual 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 would have to reside in the country for a minimum of 5 years. A police report from all countries the individual has lived in for more than 6 months is also required, as well as a resume, to confirm that the individual is doing everything legally. A British Overseas Territories Citizen is someone who is part of the United Kingdom colonies, because they themselves or their parents or grandparents became the citizens of these territories. A citizen of Anguilla would thereby be a British Overseas Territories Citizen, but not a “British citizen.”

Pathway To U.K. Citizenship

The UK has special relationships with many countries either by connection through commonwealth, territory, or other historical reasons. As such, nationals of these countries have the right to British citizenship. The act of such persons becoming British citizens is called “registering 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 one step away from becoming a citizen of the U.K. It is therefore a pathway to U.K. citizenship for those who would like to take advantage of this extra benefit.