TURKS & CAICOS Law and Practice Contributed by: David Stewart, Thomas Bucknall and Gareth Bathgate, Coriats Trust Company Limited
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 Com - pliance 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. Economic substance remains an area of international scrutiny and ongoing legislative attention. • The Turks and Caicos Islands have a beneficial ownership register. Companies have 14 days after incorporation, registration or re-domicile to file with the Financial Services Commission the informa - tion regarding the beneficial owners of the entity. New regulation came into force this year allowing domestic and foreign law enforcement, anti-money laundering and anti-terrorism authorities access to the register. Members of the public, such as jour - nalists, academic researchers, or persons pursuing a business relationship or transaction may access the register if they can prove a legitimate interest in doing so. Access will only be granted following an application procedure, payment of associated fees, and formal approval from the Commission. Named beneficial owners may apply for non-disclosure where there is a serious risk of harm, thereby balancing transparency requirements with privacy concerns. 2. Succession 2.1 Cultural Considerations in Succession Planning There are no notable cultural considerations in suc - cession planning. 2.2 International Planning The Turks and Caicos Islands is an attractive juris - diction to structure in as there are robust statutory provisions preventing claims based upon forced heir - ship (see 2.3 Forced Heirship Laws ), divorce (in cer - tain circumstances) and by creditors of settlors (see 4.1 Asset Protection ) after a very short period. In
practice, high net worth families commonly use dis - cretionary trusts and related corporate structures to ring-fence assets from forced heirship claims, reduce exposure to future matrimonial claims in appropri - ate circumstances, and enhance protection against creditor challenges. Claims by creditors seeking to set aside transfers to a trust are subject to strict statutory requirements and limitation periods, providing a high degree of certainty for properly established structures. 2.3 Forced Heirship Laws The Turks and Caicos Islands does not have forced heirship laws and does not recognise claims brought under such laws. 2.4 Marital Property The basic starting point on marital property is similar to English law; dependent on the length of the mar - riage, property and wealth built after the date of mar - riage 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 mat - rimonial issues, taking advice on the basis of the rel - evant specific facts is strongly recommended. 2.5 Transfer of Property 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 cat - egories: • transfers between associated bodies; and • transfers to the Crown or TCI government. 2.6 Transfer of Assets: Vehicle and Planning Mechanisms There are no applicable vehicles or planning mecha - nisms as there is no tax. 2.7 Transfer of Assets: Digital Assets At the time of publication of this guide (11 August 2026), no comprehensive Virtual Assets/VASP regime is yet in force. However, the Turks and Caicos Islands government and Financial Services Commission have published detailed proposals for a Virtual Assets Busi - • transfer for natural love and affection; • transfer to charitable organisation;
613 CHAMBERS.COM
Powered by FlippingBook