TURKS & CAICOS: An Introduction to Trust Companies

The Turks and Caicos Islands: A Trusted Jurisdiction

Economic and political stability

The Turks and Caicos Islands present a compelling case for high-net-worth fiduciary planning due to their combination of legal predictability, institutional integrity, and proactive economic policy.

As a British Overseas Territory, the jurisdiction benefits from a legal system grounded in English common law. The Judicial Committee of the Privy Council in London serves as the final court of appeal. This arrangement provides consistent legal continuity and reinforces investor confidence in the rule of law.

Institutional integrity is reinforced by the Integrity Commission. Established by statute and constitutionally entrenched, the Commission is responsible for enforcing anti-corruption measures, overseeing disclosure compliance, protecting whistle-blowers and leading public education initiatives on ethics. Its independent status strengthens public administration and the credibility of the broader governance framework.

Economically, the Turks and Caicos Islands are underpinned by a tourism-driven model. Tourism accounts for approximately 65% of GDP. After a sharp contraction in 2020, the economy demonstrated resilience with a 9% rebound in 2021. Continued growth of 5–6% was projected in subsequent years, underscoring the jurisdiction’s macroeconomic stability. The use of the United States dollar as the official currency further eliminates exchange rate volatility and enhances certainty in long-term structuring.

A key development in 2024 was the launch of TCI Finance, a public-private initiative to promote the jurisdiction as a leading international finance centre. Led by Chief Executive Officer Paul Pirie, a financial services expert, TCI Finance seeks to strengthen and expand sectors including fiduciary services, family offices, insurance and banking. The Deputy Premier, the Honourable E. Jay Saunders, publicly endorsed the initiative as a milestone in national economic diversification and a strategic move to enhance the territory’s international financial reputation.

These combined features offer a uniquely stable environment for wealth preservation, supported by legal continuity, transparent governance, sustained economic growth and forward-looking financial services policy.

Trust law landscape

The Turks and Caicos Islands offer a mature, flexible and fiscally neutral trust law framework designed for the needs of international families, fiduciaries and institutional trustees. Underpinned by a modern statutory foundation and supported by established fiduciary practice, the jurisdiction continues to attract sophisticated wealth planning activity across discretionary, dynastic, philanthropic and commercial structures.

The core trust legislation, the Trusts Act, was extensively revised in 2016 to replace the earlier 1990 statute. The Act expressly provides for discretionary, purpose, charitable, protective and asset protection trusts. Perpetual trusts are permitted, positioning the jurisdiction competitively for dynastic planning when compared with common law jurisdictions that retain limited perpetuity periods.

A significant advantage is the exclusion of foreign heirship rights, reinforced by statutory firewall provisions. These protect the validity and enforceability of local trusts against conflicting claims arising under foreign succession laws. In addition, the Act supports settlor-reserved powers and enables special-purpose trust structures, including trusts of company shares, which are frequently used in cross-border holding arrangements.

The trustee regime is codified under the Trust Companies (Licensing and Supervision) Act, which is administered by the Turks and Caicos Islands Financial Services Commission (the “Commission”. Trustee licensing is subject to professional standards, regulatory oversight and fit-and-proper-person assessments. Both restricted and unrestricted licences are available, ensuring regulatory scalability. Trustees are required to act with diligence and impartiality, to keep trust property segregated and to maintain accurate records. These obligations reflect core fiduciary duties derived from English equity, which remains the legal foundation of TCI’s private client regime.

From a tax perspective, the Turks and Caicos Islands offer full tax neutrality. There is no inheritance tax, capital gains tax, income tax or corporate tax, nor is any stamp duty levied on the creation of a trust. This makes the jurisdiction particularly attractive for cross-border settlors seeking a stable and predictable fiscal environment in which to hold global assets.

The regulatory landscape also includes the Companies Act and the Beneficial Ownership Regulations, which require the maintenance of beneficial ownership registers for qualifying entities, namely companies. Disclosure and accessibility to these company registers, including for companies with trustees as beneficial owners, is in line with evolving international standards on transparency and anti-tax avoidance. Access to the register is limited and specific based on an application to the Commission, payment of a fee, solely to certain domestic and foreign authorities and law enforcement authorities or to a third party where there is a demonstrated legitimate interest. This is complemented by the Companies and Limited Partnerships (Economic Substance) Ordinance, which requires in-scope entities to demonstrate physical presence and core income-generating activity. Importantly, the framework is designed to preserve operational efficiency for non-resident trusts that fall outside the definition of relevant activities.

The jurisdiction remains fully compliant with Financial Action Task Force (FATF) and OECD expectations and has not been subject to blacklisting. As a British Overseas Territory, the Turks and Caicos Islands maintain a stable legal system grounded in English common law, with final appeal to the Judicial Committee of the Privy Council in London. English is the official language, and the courts are equipped to handle complex fiduciary disputes with a pro-trust orientation.

The Turks and Caicos Islands offer a distinctive combination of legislative flexibility, fiduciary continuity, tax neutrality and regulatory credibility. These attributes collectively support the jurisdiction’s continued role as a strategic hub for wealth preservation and fiduciary innovation across generations.

Court system and dispute resolution

The legal system of TCI is based on English common law with local statutes and some UK statutes extended to apply specifically to TCI. TCI has a codified constitution, a Supreme Court (its court of first instance) and a Court of Appeal. The Judicial Committee of the Privy Council remains TCI’s final appellate court.

In addition to conventional litigation, TCI offers resolution through alternative dispute resolution, with both arbitration and mediation available. The Arbitration Act Chapter 4.08 governs domestic and international arbitration agreements and arbitration proceedings. There is no restriction on what subject matter may be arbitrated and parties are free to make choice of law and procedural decisions.

The Court-Connected Mediation Rules 2025 have also been introduced in TCI and allow civil matters to be referred to mediation. While mediation is not mandatory, it is strongly encouraged by the courts in during the pre-trial phase of proceedings.

The Commission is responsible for the administrative regulation of financial services in TCI, including trust companies and the trust industry more generally. The Trusts Act 2016, Trust Companies (Licensing and Supervision) Act 2016, Trust Companies (Regulations) 2016 and Trust Companies Code 2016 provide a modern, comprehensive regime for the regulation of the trusts industry and trust companies in TCI.

The Supreme Court of TCI generally has jurisdiction over TCI trusts, but also has jurisdiction in cases where the trust is a foreign trust, the trustee is a TCI resident, any trust property is located in TCI, the trust’s administration takes place in TCI, the parties submit to the court’s jurisdiction, or if the trust’s terms specify that the Supreme Court should have jurisdiction.

Regulatory environment

In TCI, trust companies are regulated under a modern, mature and robust legal compliance framework. It is designed to ensure integrity, accountability and professionalism in trust services on the Islands.

The primary regulator of trustees and trust companies in TCI is the Commission, established under the Financial Services Act. The Commission regulates trust companies by overseeing licensing, supervision and enforcement under the Trust Companies (Licensing and Supervision) Act and the Trust Companies Code.

Examples of the legal compliance framework include licensing requirements, governance and oversight standards, supervision, and certain prohibitions and restrictions. TCI offers restricted and unrestricted licences, where the former is designed for the management of specific named trusts and the latter allows for management of multiple trusts. An applicant must satisfy “fit and proper” criteria as part of its application for licencing, which the Commission reviews and approves. Capital requirements include a minimum paid-up capital and the Commission requires a statutory deposit to be made and held with it. TCI trust companies must develop and implement a governance framework setting out clear roles and responsibilities and risk management systems. Any changes in control or key functions require prior Commission approval. Ongoing Commission supervision and compliance require trust companies to maintain professional indemnity insurance and the submission of audited financial states and regulatory returns.

International standards of information sharing, such as those established by the US Foreign Account Tax Compliance (FACTA) and the OECD’s Common Reporting Standard (CRS), also play a significant role in shaping the regulatory framework of trust companies in TCI. TCI is a FACTA Model 1 jurisdiction by virtue of its Intergovernmental Agreement with the United States of America. FACTA is enforced through the Trust Companies (Licensing and Supervision) Act. Enforcement of these international standards are woven into the Trust Companies (Licensing and Supervision) Act by virtue of its requirement for trust companies to maintain robust compliance systems, where we see the submission of annual compliance requirements and internal audit findings report to the Commission.

There are clear penalties for non-compliance with the TCI regulatory regime. This reflects TCI’s commitment to setting and maintaining high standards in its financial sector. Administrative sanctions include suspension or revocation of a trust licence, restriction of business activities, such as accepting new clients or managing new trusts, or public warnings by the Commission. An administrator may be appointed to take control of the trust company’s operations. Financial penalties include fines for breach of licensing requirements, governance failures, non-compliance with requirements relating to holding and dealing with customer assets or obligations to report violations, which could be substantial. Criminal liabilities may arise if operating without a licence.

The regulatory framework aims to be preventative as much as punitive, requiring trust companies to set and maintain strong internal controls and transparent operations. TCI has a consistently risen to international standards and is currently in good standing with the European Union and OECD in respect to international tax co-operation and transparency (no longer EU blacklisted as of February 2024). This is a strong signal of TCI’s credibility and alignment with global regulatory standards.

Market developments and trends

The fiduciary services market in the Turks and Caicos Islands has matured significantly, transitioning from a niche component of legal practices to a structured domain of independent, professional trust firms. Specialist trust companies are now widely preferred over ancillary trust departments within law firms. Trustee licensing requirements and capital standards introduced under modern legislation ensure that only properly regulated entities operate in the market, and regulatory vigilance is maintained by the Commission. For example, a public notice issued in January 2025 highlighted that only companies listed on the Commission’s website held legal trust‑licence status.

This regulatory robustness has facilitated consolidation and professionalisation within the sector.

Global mobility continues to inform high‑net‑worth client strategies. The Islands support residency through investment, offering both permanent and temporary routes. Investment in real estate or business can secure a Permanent Residence Certificate, enabling flexible planning and jurisdictional freedom. English is the official language, reinforcing access and service delivery for international clients where English is the common business language.

Philanthropic and sustainability trends are influencing fiduciary offerings. The jurisdiction permits both charitable trusts and non‑profit structures, enabling trustees to support philanthropic objectives. Clients increasingly favour trusts over foundations for their governance flexibility and potential for perpetual duration.

Generational planning remains central to demand. Trust structures in TCI are designed for longevity and flexibility, offering mechanisms such as revocable or irrevocable trusts, perpetual trusts and private trust companies. These features meet evolving expectations for dynastic wealth preservation and beneficiary engagement.

ESG and philanthropic preferences are shaping trustee service offerings globally. While specific local data is limited, the jurisdiction’s trend toward regulated transparency signals readiness to align with international standards. A key development is the beneficial ownership register, which provides “legitimate interest” access to regulators, foreign authorities and members of the public with valid reasons. This underscores a shift toward global compliance without sacrificing client confidentiality.

The Turks and Caicos fiduciary market combines regulatory integrity, professional consolidation, global client mobility and evolving ESG‑aligned services. These trends affirm the Islands’ capability to meet the sophisticated demands of modern, multi‑generational wealth structuring.

Opportunities and challenges

The Turks and Caicos Islands trust and private wealth sector operates in a competitive global environment where external pressures create both structural challenges and strategic opportunities.

Globally, international banks are reducing exposure in non-core jurisdictions. For a jurisdiction that uses the United States dollar and relies on international clearing infrastructure, this introduces practical difficulties. The response from the Turks and Caicos Islands, however, has been targeted and constructive. Ongoing dialogue with regulators in North America and Europe, combined with significant investment in compliance technology and licensing oversight, has strengthened the jurisdiction’s profile as a serious and forward-looking financial centre.

Operational frictions around onboarding and cross-border complexity also remain. Account opening for trust-related entities can involve lengthy due diligence and extended timelines. These inefficiencies, while frustrating, reflect the jurisdiction’s emphasis on rigorous know-your-customer and anti-money laundering standards. Leading trust companies have responded by adopting secure client portals, enhancing internal governance, and investing in onboarding infrastructure to shorten processing cycles. These efforts demonstrate a shift from reactive compliance to embedded institutional discipline.

Offshore jurisdictions are no longer used to hide assets, though some public perception and regulatory scrutiny concerns remain. However, the highly regulated framework in the Turks and Caicos Islands ensures all service providers must adopt a more transparent and professionalised approach. Trustees now see education, ethics, and proactive client communications as essential to maintaining credibility. Misunderstandings about the legitimacy of trusts remain widespread, but the jurisdiction can lead in reframing the narrative by showing that trusts, when regulated and properly administered, serve legitimate family governance, philanthropic and succession-planning functions.

The regulatory environment is evolving in ways that reinforce this positioning. The Financial Services Commission has launched the Company Registry portal, enabling digital filings and improved registry access. In 2024, the jurisdiction benefitted from an IMF technical assistance mission, which supported supervisory enhancements and strengthened credit risk modelling. The recent expansion of the beneficial‑ownership register, which launched under a “legitimate interest” model, introduces a balance between transparency and privacy. Access is granted only to those who can demonstrate a valid need, such as foreign authorities, while allowing individuals facing serious personal risk to apply for confidentiality exemptions at an administrative cost. This nuanced approach signals TCI’s willingness to engage with global standards and protect the interests of legitimate clients.

While challenges such as de-risking, onboarding inefficiencies and global scrutiny remain real, they are being met with institutional maturity and operational innovation. By integrating regulatory foresight, technological upgrades and client-responsive service models, the Turks and Caicos Islands is not merely surviving global financial headwinds but emerging as a distinctive jurisdiction—credible, resilient, and strategically positioned for modern fiduciary planning.

Future outlook

The Turks and Caicos Islands are positioning themselves as a digitally enabled, client-focused and globally relevant jurisdiction for fiduciary services over the next decade. The government’s 2025 to 2026 budget projects record revenues of USD549.5 million and targets infrastructure, education, and digital transformation, with a goal to double GDP to USD3.5 billion within five years. Upgrades to ports and airports, including South Caicos airport now offering direct flights from Miami, reinforce the jurisdiction’s proximity to the United States and its accessibility to international clients.

Digital transformation remains central. The Commission has committed to embedding financial technology into regulatory frameworks, with support from an IMF technical assistance mission that enhanced supervisory capacity and credit risk systems. The Companies Registry portal has improved filing and registry access, signalling a shift towards operational efficiency and modern regulatory infrastructure.

Regulatory reform continues to advance. New legislation is in development to address digital assets, decentralised finance structures and artificial intelligence. In June 2025, access to the beneficial ownership register was expanded under a legitimate interest model, allowing vetted individuals and authorities to view records while preserving confidentiality for those facing personal risk. This framework reflects international transparency standards while maintaining client privacy.

Private investment is deepening. Invest TCI has facilitated more than USD1.2 billion in foreign direct investment, with recent developments by Ritz Carlton, St Regis, Andaz, and a USD1.2 billion agreement with Palace Resorts. These projects reinforce long term investor confidence and position the Islands as a dual hub for luxury real estate and private wealth planning.

Real estate remains a key asset class. In 2023, the median luxury home price reached USD3 million, doubling from the previous year despite a modest decline in volume. This reflects tight supply and sustained demand.

The jurisdiction combines tax neutrality, use of the US dollar, and a legal system based on English common law. Constitutional protections and a need to know regime for information sharing preserve privacy while supporting compliance. With targeted investment in artificial intelligence, digital education and regulatory reform, the Turks and Caicos Islands are not only responding to global shifts but emerging as a distinctive and future ready centre for high value fiduciary services.