GEOGRAPHY & CLIMATE
Nevis is located in the chain of the Leeward Islands, approximately 1,200 miles southwest of Miami and 225 miles southeast of Puerto Rico. The island is part of the twin-island Federation of St. Kitts-Nevis and the two islands are only 2 miles apart at the closest point. Occupying only 36 square miles, Nevis is dominated by Nevis Peak, which rises to a height of 3,265 feet in the center of the oval-shaped island. Nevis Peak is surrounded by rainforest and the perimeter of the island is ringed with lush tropical foliage, beautiful sandy beaches and the warm Caribbean Sea. Charlestown, the capital of Nevis, boasts several fine examples of 18th century colonial stone architecture. The island enjoys pleasant year-round climate of approximately 79 degrees. Humidity is low and constant northeast tradewinds keep the island cool.
HISTORY & SECESSION
When Christopher Columbus first saw Nevis on his second voyage in 1493, he named her Nuestro Senora de las Nieves ("Our Lady of the Snows"), so named because the cloud-ringed Nevis Peak reminded him of the snow-capped peaks of Spain. The name was later shortened to Nevis. The island was first settled by the British in 1628 and power shifted between the British and the French in numerous bloody battles until Nevis was awarded to Britain by the 1783 Treaty of Versailles. After that, St. Kitts and Nevis were governed as part of a colony of the Leeward Islands and then of the West Indies Federation until 1967 when, together with Anguilla, it became a governing state in association with Britain. Later that same year, Anguilla chose to become independent. In 1983, St. Kitts-Nevis became independent from Britain, but remains an independent member of the British Commonwealth.
Under the 1983 Independence Constitution, Nevis acquired some autonomy within the Federation and has its own Legislature and Cabinet. It also has the right to secede from the Federation upon a two-thirds vote of elected Legislative Assembly members and a two-thirds vote in a referendum of voters. In October 1997, the Assembly overwhelmingly passed a bill to secede from the Federation. A referendum must now be held in Nevis within six months to determine if Nevis will secede from the Federation.
GOVERNMENT & THE LEGAL SYSTEM
The Federation's laws are based upon English common law. Like other former Associated States which have gained independence, St. Kitts and Nevis continues to be linked to the Court of Appeal and the High Court of the Eastern Caribbean Supreme Court. The Privy Council is the court of last resort.
TRANSPORTATION & HOTELS
Air transportation is available to Nevis via British Airways, Lufthansa, American Airlines, Air Canada and BWIA International through St. Maarten, St. Kitts and Antigua. Nevis is linked to other Caribbean islands by regional airlines-LIAT, WINAIR and Nevis Express. Ferry service is also available between Nevis and St. Kitts.
Accommodations on the island include the Four Seasons Resort, a 196-room luxury hotel on Pinneys Beach, four former sugar plantations which have been converted into historic inns (The Hermitage, Montpelier Plantation, Golden Rock and Old Manor Estate), Nisbet Plantation and Oualie Beach Hotel which offer charming beachfront bungalows and the modern condo-style suites at Mt. Nevis Hotel.
POPULATION
The island population numbers approximately 9,000 and enjoys a 96% literacy rate.
ECONOMY & OFFSHORE FINANCE
Tourism remains the primary economic influence on the island, supplemented by a growing offshore finance industry. Unemployment on the island is minimal and the economy is experiencing steady growth. In the last decade, Nevis has emerged as an attractive sanctuary for offshore financial services. Since 1984, Nevis has enacted laws which provide for the creation of offshore corporations, limited liability companies, trusts and related financial services. The legislation provides a full compendium of complementary laws which provide powerful asset protection and are exempt from income, corporation, gift, withholding, estate, asset, inheritance, succession and stamp taxes. Professional attorneys and accountants are available in Nevis to assist the offshore financial sector.
TAX ADVANTAGES FOR OFFSHORE NEVIS COMPANIES
There is no personal income tax on residents of Nevis. Companies doing business or trading with Nevis are subject to a company income tax rate of 40% of net profits earned in Nevis unless they qualify for development and tax concessions under the Fiscal Incentives Act. However, offshore companies registered in Nevis are exempt from such tax.
Under the 1984 Nevis Business Corporation Ordinance, any corporation formed pursuant to the Ordinance which does not carry on business in Nevis is completely exempt from corporate, income, withholding, stamp or asset tax and other fees and taxes based upon activities outside of Nevis. In addition, a corporation is not considered to be doing business in Nevis by maintaining bank accounts in Nevis, holding directors' or shareholders' meetings in Nevis, keeping its corporate or financial records in Nevis, maintaining a registered office in Nevis, investing in Nevis corporations or serving as a partner of a Nevis partnership or beneficiary of a Nevis trust.
COMMUNICATIONS
Nevis enjoys state-of-the-art telecommunications facilities operated by SKANTEL, the local telephone company, with a fully digitized network offering international direct-dialing, facsimile, Internet and pager services. Federal Express and DHL both provide courier service to the island and the local post office provides regular mail service.
BANKING SERVICES
Nevis has a strong banking system consisting of the Government-owned National Bank, the Development Bank of St. Kitts & Nevis, Barclays Bank, Bank of Nova Scotia and the Bank of Nevis. In the event that foreign authorities seek private banking and financial records, complete confidentiality is assured by local laws which demand prison terms for violation of these statutes.
CURRENCY
The official currency of the island is the Eastern Caribbean Dollar, which is fixed to the U.S. Dollar at EC$2.70= US$1, providing a stable rate of exchange. However, U.S. Dollars are widely accepted.
ABSENCE OF EXCHANGE CONTROLS
Along with the absence of exchange controls for corporations not doing business in Nevis, the Island has an unusually liberal exchange system. Import licenses are not required and there are no limits on the amount of foreign or Eastern Caribbean currency that visitors can bring into Nevis. Unused foreign currency may be taken out freely by visitors while unused Eastern Caribbean dollars may be reconverted into foreign currency at local banks.
There are no exchange controls in Nevis and the invoicing of foreign trade transactions may be made in any currency. Importers are not required to make prior deposits in local funds and export proceeds need not be surrendered to Government authorities or to designated banks.
SHIPPING
Fully containerized freight service is available from the U.S. and Europe. Smaller craft service the island carrying goods from Puerto Rico, the U.S. Virgin Islands and St. Maarten.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
