The Turks and Caicos Islands has no direct taxation of any kind.

The Turks and Caicos Islands does not levy any tax, therefore there are no tax exemptions.

The Turks and Caicos Islands does not have income tax.

In the Turks and Caicos Islands, a tax called stamp duty is payable on the purchase of property within the islands. This tax is payable by anyone purchasing property in the islands. The stamp duty rate is based on the island on which the property is being purchased and is in a range up to a maximum of 10%. 

Most non-residents and non-citizens that own property in the TCI utilise a company when purchasing property rather than buying in their individual names as it is more administratively convenient. 

The Turks and Caicos Islands is a British Overseas Territory with a local parliament which has limited authority to raise taxes. So far, neither of the two political parties has ever indicated that they would impose taxation on the  nation, and we think the chances of such a measure are very low. 

The Turks and Caicos Islands are signatories to numerous TIEAs, the following being the most notable. 

• The TCI signed up to the Common Reporting Standard (CRS) regime as early adopters in 2017. Financial institutions within the TCI have until March 31st of each year to complete their CRS reporting to the Financial Transactions Information Exchange (FTIE). 
• Financial institutions within the TCI have until June 30th to complete their Foreign Account Tax Compliance Act (FATCA) report and to file it with the FTIE. 
• The TCI has implemented the Economic Substance regime, and each company in the TCI has until March 31st to complete its reporting. 
• The Turks and Caicos Islands have a beneficial ownership register. At the moment, the register is not public. Companies have 15 days after incorporation, registration or re-domicile to file with the Financial Services Commission the information regarding the beneficial owners of the entity.   

There are no notable cultural considerations in succession planning.

The Turks and Caicos Islands is an attractive jurisdiction to structure in as there are robust statutory provisions preventing claims based upon forced heirship (see 2.3 Forced Heirship Laws), divorce claims (in certain circumstances) and by creditors of settlors after a very limited period.

Turks and Caicos does not have forced heirship laws, and does not recognise claims brought under such laws.

The basic starting point on marital property is similar to English law; dependent on the length of the marriage, property and wealth built after the date of marriage may be regarded as joint, subject to each party’s contribution to its creation. If the parties are properly advised, prenuptial agreements can have persuasive effect but are not legally binding. As always with matrimonial issues, we strongly recommend taking advice on the basis of the relevant specific facts. 

In the TCI, the transfer of property attracts a stamp duty which is payable to the government. However, there are exemptions, which are usually in these categories: 

• transfer for natural love and affection;
• transfer to charitable organisation; 
• transfers between associated bodies; and 
• transfers to the Crown or TCIG.

There are no applicable vehicles or planning mechanisms as there is no tax.

The TCI currently does not have any laws or regulations for the operation of digital currency. 

Under the 2016 Trust Ordinance, as amended, Turks and Caicos law provides for the full suite of VISTA trusts, Private Trust Corporations, Settlor Controlled Trusts, Special Purpose Trusts, Revocable Trusts, Irrevocable Trusts and Discretionary Trusts. 

Trusts and trust law are well respected in the Turks and Caicos Islands, where English law cases have persuasive effect, and the judiciary is well versed in trust law. 

There are no Turks and Caicos tax issues arising from the service by a TCI resident as trustee of a foreign trust, or from a beneficiary or settlor of a foreign trust being resident in TCI.

There are various ways in which a settlor can retain control over trust assets.

When settling assets into a Turks and Caicos trust, any creditor would need to allege and prove that any such settlement was undertaken whilst the settlor was, as a result of the transfer or at the time of the transfer, insolvent, and any such claim would be statute barred four years after the date of settlement.

Trust and corporate structures are commonly used, with family governance charters and supervisory boards to regulate and resolve disputes.

When a partial interest in an entity is transferred, during lifetime or at death, the fair market value of the interest for transfer tax purposes is adjusted to reflect a discount for lack of marketability and control, although  the relevant stamp duty charge (as this is the only relevant tax in Turks and Caicos) heavily depends on the coherence and credibility of the supporting valuation report. 

Disputes with trustees are uncommon, but they do happen. Most family trust disputes are resolved through court proceedings. 

Following the English law approach to the assessment and quantification of loss and damage, TCI courts generally avoid the award of punitive or multiples of damages, tending instead to a conservative approach to assessing provable direct losses caused as a result of any finding that a party has breached a contract or a duty of care.

Corporate trustees offering fiduciary services for reward owe extensive common law and statutory duties, and must be regulated and licensed by the Turks and Caicos Financial Services Commission (TCIFSC). Such entities need to carry high levels of professional indemnity insurance, have a full annual audit by an approved auditor, and submit to frequent inspections and reviews by the TCIFSC. 

Following English law authority, it is very difficult for a claimant to seek to pierce the veil of a corporation and to affix individuals with liability for that corporation's wrongdoing, but it is theoretically possible if the claimant can establish that the corporation had no real separate legal identity, and was just acting as the alter ego of an individual. Similarly it is open to a claimant to argue that a trust is a sham, and that in reality the so-called trust is merely an extension of an individual. Good-quality structures and management by a good trustee will help defeat any such claims. Fiduciaries can contractually protect themselves from claims, but never for fraud. 

There are no specific laws or regulations concerning asset allocation or investment management, but there are common law duties of care to manage assets to the standard of a reasonably competent manager. 

There is no special regime governing the asset allocation or other investment management methodology that applies to fiduciaries in the Turks and Caicos Islands. There is a statutory regime for a special purpose trust to hold and run an active  business.

Applicants for temporary or permanent residence must satisfy a range of criteria and be of good character. There are various bases on which temporary or permanent residency by investment can be available.

Permanent residency can lead to a discretionary grant of citizenship, but it is a long haul.

There are no special planning mechanisms for minors or adults with disabilities in the Turks and Caicos Islands, but this requirement could be covered by a properly drafted trust deed.

Appointing a guardian, conservator or similar party requires a court proceeding and ongoing supervision by the court, but in limited circumstances only, and the Turks and Caicos Islands  do not have an LPA statute.

There is scope to apply to court for the appointment of a guardian if a person is mentally incapacitated, but no other specific measures.

By law, legitimate, illegitimate and adopted children are to be treated the same. There is no specific surrogacy law.

This is the subject of a current case in which the claimant is arguing that same-sex marriages, which are not recognised under TCI law, should be as to do otherwise is discriminatory under the written constitution. The outcome is awaited. 

In the absence of tax, the only relevant legal regime is the requirement for any charity or other not-for-profit entity to register with the TCIFSC.

Usually a simple company limited by guarantee is used for charitable planning.