CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Guernsey Welcomes Migration Of First Foreign Foundation

Guernsey Welcomes Migration Of First Foreign Foundation

by Jason Gorringe, Tax-News.com, London

08 October 2014


Guernsey's company registry has approved the first ever migration of a foundation from another jurisdiction to Guernsey.

Lloyd's Trust Company (Channel Islands) Limited made the decision to move a Liechtenstein-based foundation to Guernsey following the introduction of foundations legislation in Guernsey last year.

Carey Olsen prepared the migration application for submission to the Registry and advised Lloyds on the foundation's new charter and the rules that needed to be adopted to comply with the Foundations (Guernsey) Law, 2012, as well as legal and regulatory aspects of the migration.

Natasha Kapp, Senior Associate at Carey Olsen, said that the firm has had several inquiries regarding foundation migrations into the island following the introduction of the new law. A foundation has similar features to a trust in that it has a founder who is similar to a settlor, beneficiaries have similar rights to those for discretionary trust beneficiaries, and a foundation's instrument and rules are similar to a trust deed. Foundations are generally a more familiar concept for clients from civil law jurisdictions than trusts, and Guernsey had hoped the introduction of foundations would bring in significant business, in particular from the Middle East.

"Guernsey is very attractive for establishing new foundations because it is a reputable jurisdiction with highly experienced advisers and a sound and rational regulatory environment," Kapp said. "Many existing structures already include foundations established in other jurisdictions and clients can see the benefits that migrating the foundation to Guernsey might bring."

The tax treatment of Guernsey foundations is largely consistent with that of trusts, being generally taxed at a zero rate, in line with the tax treatment of most companies in Guernsey. A 20 percent rate is applicable on income deriving from land or property in Guernsey.

TAGS: environment | tax | trusts | international financial centres (IFC) | Guernsey | Liechtenstein | offshore | legislation

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »