ANGUILLA: An Introduction

As a zero tax jurisdiction, Anguilla provides corporate and personal tax planning opportunities. After gaining legal independence from St. Kitts and Nevis on 19th December 1980, Anguilla has developed its own industries, including a financial services industry, while remaining a British Overseas Territory.

The country has enhanced the exclusively high-end tourism sector, along with the financial services, fishing, and boat-building industries.

The beautiful island that stretches to only 16 miles long and has some of the world’s highest ranked beaches adds to the appeal, recognised by tourists and investors alike.

Anguilla is the most north-eastern of the Caribbean Leeward Islands and is located east of Puerto Rico and six miles north of the French/Dutch island of Saint Martin/Sint Maarten. The average temperature in Anguilla is 80 °F (27 °C) with the summer months producing the hottest periods. Anguilla encompasses several smaller islands off of its mainland coast, with an abundance of marine life and bird inhabitants.

Anguilla’s capital, The Valley, rests in the centre of the island, adjacent to Clayton J. Lloyd International Airport and 15 minutes from both the main ferry terminal in Blowing Point and the main seaport in Road Bay. The Eastern Caribbean Central Bank is the overarching regulator and monetary authority, assisting in balancing the two currencies in circulation. The Eastern Caribbean dollar (official currency) and the US dollar are both traded, with an exchange rate fixed at XCD2.70 / XCD2.68 to USD1.

Government  

Anguilla’s political stability can be admired by neighbouring islands. The dependence on British administration highlights the aspects of sovereignty which Anguilla has relinquished. To this day, the country is governed by its 1982 Constitution with eight amendments, the most recent one being in 2019.

The 2019 amendments changes the title of Chief Minister to Premier and introduces a limit of two consecutive terms for the Premier. It substitutes the term Anguillian for a person who belongs to Anguilla, and revises the categories of people who qualify as Anguillians. It also makes some changes to the qualifications for elected membership of the House of Assembly and the qualifications of voters, and enables the establishment by legislation of an island-wide single electoral district in addition to the single-member electoral districts into which Anguilla is divided. With effect from the next dissolution of the House of Assembly, it abolishes the office of nominated member of the House of Assembly.

The government consists of three branches: executive, legislative and judicial. Anguilla is governed with a top down approach, stemming from the Monarch (Queen Elizabeth II) in England, who appoints a Governor. The Governor is the highest authority in Anguilla and appoints the Chief Minister. The Chief Minister is the head of government, who delegates the local affairs to the elected officials in the House of Assembly. Elections for the Assembly (consisting of seven elected members) are held every five years.

The most recent election took place in 2015, when the Anguilla United Front (“AUF”) party won a majority of seats in the House of Assembly, under the administration of Chief Minister Victor Banks. Pam Webster, principal of WEBSTER LP, was the seventh elected member, and is the only independent candidate elected and the only member of the Assembly not a member of the AUF party. The next elections will be this year i.e. 2020.

Anguilla Legal System 

The legal system in Anguilla is based on English common law in accordance with the Anguilla Constitution. It is administered by the Magistrate’s Court, the High Court and the Court of Appeal of the Eastern Caribbean Supreme Court of Justice. There is a final right of appeal to the Privy Council in the United Kingdom. The Attorney General is sworn in at the House of Assembly and is accountable to the Governor.

Anguilla is bound by legal decisions handed down by the High Court and, in the case of appeals, by the Eastern Caribbean Supreme Court. The appeal court of last resort is the Privy Council in London, England. The law firms in Anguilla provide high-quality legal services to clients all over the world.

Financial Services Industry 

Anguilla’s financial services are regulated by the Anguilla Financial Services Commission, with the aim of continuing the growth of this sector and stabilising the EC dollar and the US dollar exchange rate. Anguilla is a dynamic financial services jurisdiction, both in the public and in the private sectors. The varying tax advantages, low minimum capital requirements, and offshore and captive insurance legislation allow for an expansive financial sector looking to develop further each year. Anguilla began to develop a financial services industry following the 1993 Mokoro Report, which concluded that Anguilla's offshore financial services were a natural complement to the tourism industry. The result of this was an extensive legislative reform programme, culminating in the 1994 enactment of legislation. This was designed to encourage the development of a well-regulated offshore financial services industry. There are ambitious plans for the future and Anguilla intends to continue to make its mark in the Caribbean and to position itself as a major player in the international financial services arena.

The Financial Services Commission commenced operations on 2nd February 2004. The Commission ensures that Anguilla meets international standards and that it stands out among various other jurisdictions. The zero tax policies and positive rapport contribute to the island's attractiveness for potential foreign direct investment in a quality offshore jurisdiction.

The National Commercial Bank of Anguilla and Scotiabank are the two banks operating in Anguilla.

Additionally, Anguilla also has an online company registration network, known as ACORN, which enables companies to be established and maintained in Anguilla in a swift and efficient manner. Once all documentation has been submitted a company can be incorporated in less than 24 hours.

Employment  

To hire non-Anguillian nationals, it is necessary to establish that the position cannot be effectively filled by an Anguillian national or a naturalised citizen. If it is established that a non-Anguillian national is the best candidate for the position, they must be granted a work permit by the Government of Anguilla prior to commencing employment. An alternative route is to establish a business in Anguilla which entails different, but rather straightforward requirements. The current legislation in relation to employment in Anguilla is the Labour Relations Act, 2018 and the Labour Relations (Amendment) Act, 2019.

Real Estate 

Land and property in Anguilla is open for purchase to both Anguillian nationals and non-Anguillian nationals, who are referred to as 'aliens'. Property tax is assessed on the annual land value at a flat rate of 0.075%. Aliens purchasing land need to obtain an Aliens Land Holding Licence as an individual or as a corporation.

Citizen by Investment  

In addition Anguilla also benefits from new citizen by investment legislation in the form of the Anguilla, Economic Residence Act, 2019.