“[This] would allow for compliance with the existing Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) legislative framework in St. Kitts and Nevis and by extension, comply with the related international standards set out by the Financial Action Task Force (FATF),” Harris added. Under the Federation of Saint Kitts and Nevis’s latest bill residents and business are legally allowed to:
As news.Bitcoin.com reported in December 2019, Saint Kitts and Nevis is a popular choice for those looking for a second passport. The Federation is one of the most well known regions worldwide for obtaining dual citizenship. Saint Kitts and Nevis Citizenship by Investment Program was established in 1984 and it gives citizenship either through donation or a real estate investment. Just like the new Virtual Asset Bill 2020, the country’s tax laws are pretty lenient compared to places like the U.S. or other countries in Europe. For instance, unless you try to sell an asset within one year of acquisition, no capital gains tax is levied in the Federation. If you do happen to sell before the one-year holding period, then the assets are subject to a 20% capital gains tax.
After the Federation Virtual Asset Bill 2020 passed, the website citizenshipbyinvestment.ch wrote that “virtual currency payments provide the cheapest alternative solution to banking fee and correspondent banking issues faced by the Caribbean.” The website also spoke with Bitcoin.com’s Executive Chairman Roger Ver. The entrepreneur acquired citizenship through the Federation’s program in 2014 after renouncing his U.S. citizenship. “The big benefit is in addition to being able to pay someone from across the cash register table or across the room, you can pay people across the planet,” Ver explained. The Bitcoin.com executive added:
As you know, many of the cars in St. Kitts are bought from Japan, by using a virtual currency you can pay from here to Japan instantly for a tenth of a penny, whereas with the bank wire transfers will cost you a bunch of money and take at least several days.
The Federation’s capital gains guidelines also apply to all types of assets like gifts and inheritance. People researching the friendlier tax laws in Saint Kitts and Nevis will recognize the system of taxation is one of the most lenient worldwide. With friendly capital gains tax laws and the latest bill that legalizes cryptocurrency assets like bitcoin cash (BCH), the Federation of Saint Kitts and Nevis might look even more tempting to those searching for dual citizenship.
What do you think about Saint Kitts and Nevis passing the Virtual Asset Bill 2020? Let us know what you think about this subject in the comments section below.
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