Detailed Review Of the British Virgin Island’s Economy
The British Virgin Islands are mainly known for their status as a tax haven and their particularly attractive environment for businesses. The location is so advantageous that a KPMG report published in 2000 found that 41% of global companies were registered in the BVI. It is also estimated that 5,000 companies are created there each month. Other important economic sectors in the British Virgin Islands are tourism (50% of the GDP) water sports, fishing, construction, fruit production and rum distillation.
The British Virgin Island’s Economic Strengths:
- Very favourable offshore tax system.
- Fast and efficient company registry.
- Modern telecommunications infrastructure.
- Flexible financial services legislation.
- No limit to offshore activity.
The British Virgin Island’s Economic Weaknesses:
- Relatively poor international reputation
- Strong association with tax avoidance and evasion
- Focus of anti-offshore European legislation
- Not recommended for European clients