Seychelles has the smallest population of any state in Africa, however they hold the distinction of being, per capita, the most highly indebted country in the world according to the World Bank, with total public debt around 122.8% of GDP and ironically Seychelles remains the richest territory in Africa in terms of GDP per capita.
The Seychelles is a totally independent state generating its own income. Because of economic contraction (the economy declined by about 2% in 2004 and 2005 and lost another 1.4% in 2006 according to the IMF) the country was moving downwards in terms of per capita income; however, the economy came roaring back in 2007 growing by 5.3% due in part to the record tourism numbers, but also the booming building and offshore industries which also continue to set records.
A Seychelles International Trust offers a flexible, private way of protecting investments and providing for the future of your family or loved ones. The trust regulatory framework is provided by the International Trusts Act of 1994, and regulated by the Seychelles Business Authority (SIBA).
The trust is completely tax-free outside of the Seychelles. Although created specifically to hold assets outside of the jurisdiction, the trust may also own and trade in shares, operate bank accounts and conduct other business in the Seychelles subject to permission from the authorities.
The trust's outstanding feature is its privacy. Neither the settler nor the beneficiary has to be publicly named in any document or register. Only the trustee must be named, but the trustee can also be a corporation, and if the corporation is a bearer-share or structured in the right way it will be very hard to pinpoint a beneficial owner. Capital Conservator can also provide nominee trustees in the Seychelles.
Benefits of the International Trust:
• An international trust may be created in writing, by will or by oral declaration
• One-off registration fee
• Both settlers and trustees can be named as beneficiaries
• The trustee can be a corporate body
• The names of settlors and beneficiaries are confidential under Seychelles Law, unless a Court orders disclosure under the Anti-money Laundering Act
• Forced heirship judgements are specifically excluded
• the law governing an international trust is the law chosen by the settlor to be the proper law
• an international trust is valid and enforceable in Seychelles
• Tax exempt for income derived outside Seychelles
Restrictions
• The trust property may not include any Seychelles movable or immovable property
• The settlor must reside outside the Seychelles for the duration of the trust
• If a trustee or settler is a beneficiary he cannot be the sole beneficiary
Management
The trust is managed by trustees, who are given funds in trust by the settler for the benefit of a beneficiary.
The settler cannot be a Seychelles resident, and is not named in any public document or register.
Two trustees are needed to oversee the trust. One has to be a Seychelles Resident. Alternatively a corporate body can take the place of both trustees. Trustees are publicly registered. A trustee may be liable for assets held within a trust if he is also a beneficiary.
The beneficiary(ies) need not be named, unless a Seychelles resident or corporation.
The settler or trustees can be beneficiaries but not the SOLE beneficiary.
Taxes
An international trust is exempt from all tax as long as income is derived from outside the Seychelles.
Privacy
The disclosure of information or documents relating to an international trust can only be effected if requested by the attorney general, and only in extenuating circumstances involving criminal activity such drugs, money laundering or arms-trafficking.
Protection against seizure
The Seychelles trust will not be made void in the event of the settler's bankruptcy or due to any action or suit against the settler made by his creditors. The exception is if it is proved beyond doubt that the trust was made with intent to defraud creditors, or if the settler was insolvent at the time when the trust property was vested in the trustee.
The onus of proof of the intent to default rests with the creditor.
Seychelles trusts start at US$5000.00. The total cost depends upon the services required and the complexity of the trust.
