Introduction

The British Virgin Islands (BVI) comprise over fifty islands and cays. The principal island is Tortola, where the capital Road Town is located. The islands, which are adjacent to the US Virgin Islands, form the north western extremity of the Leeward Islands in the Caribbean and are situated some sixty miles (90 kms) east of Puerto Rico. The total land area is approximately 60 square miles (155 kms).

The population is approximately 18,000 and English is the spoken language.

Constitution

The Islands are a British Overseas Territory. The Governor is appointed by the British Government through the Crown and is responsible for defense, internal security, external affairs, public services and the administration of justice. The Legislative Council is comprised of thirteen locally elected representatives and is responsible for all legislation concerning domestic matters, including taxation. The legal system is largely based on that of the UK and the influence of British case law is strong. The taxation system is entirely separate from that of the United Kingdom.

Financial Climate

In recent years, the BVI has expanded significantly as an international financial centre. Financial services, together with tourism, are the two major contributors to the economy and both have shown significant and steady growth for many years.

The Government actively pursues a policy of consultation and co-operation with professional firms engaged in the financial services industry.

The advantages of the BVI include its political and economic stability, low and exempt taxation system, modern financial services legislation, commercial confidentiality, excellent communications and infrastructure and readily available professional expertise.

The official currency of the BVI is the US dollar and there are no exchange controls.