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Economy and Banking Sector of the British Virgin Islands

British Virgin Islands
Location
Caribbean Sea
Population  (2012)
27 800
EU Status
not part of the EU (OCT)
Currency
USD (United States dollar)
Nominal GDP
n/a
Credit Ratings (as of Sep 2016)
-/-/-
Consolidated Banking Assets
n/a
Deposit Guarantee
0 USD
Number of Banks
6

The British Virgin Islands (BVI) are a British overseas territory situated in the Caribbean Sea.

Tourism and offshore financial services are the most important sectors of the British Virgin Islands' economy: each generates roughly half the national income.

There are 6 banks operating in the British Virgin Islands.

List of Banks in British Virgin Islands

National Currency

USD (United States dollar)

Credit Ratings (as of Sep 2016)

Fitch Moody's S&P
- - -

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of the British Virgin Islands: 1 Signed Agreements

British Virgin Islands signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

 Switzerland

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 25 Signed Agreements

British Virgin Islands signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

 Aruba (Apr 2013)
 Australia
 Canada (Mar 2014)
 China
 Czech Republic
 Denmark
 Finland
 France
 Germany
 Iceland
 India
 Ireland
 Netherlands (Jul 2013)
 Norway
 Sweden
 United Kingdom
 United States

There are also several agreements between British Virgin Islands and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):

 Curacao
 Faroe Islands
 Greenland
 Guernsey (Apr 2013)
 New Zealand
 Poland (Nov 2013)
 Portugal
 Sint Maarten (Dutch part)

Automatic Exchange: Starts in September 2017

British Virgin Islands signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in the British Virgin Islands
IGA in effect since 30 June 2014, Model 1

British Virgin Islands has FATCA agreement with the U.S. in effect since 30 June 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in British Virgin Islands are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is non-reciprocal: the British Virgin Islands' financial accounts hold in U.S. financial institutions will not be reported to the British Virgin Islands' authorities.

Further Information

Deposit Guarantee Scheme

Maximum Protected Amount
0 USD

Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

There is no deposit guarantee scheme in British Virgin Islands.

Banking Supervision

Financial Services Commission

Banking Sector Structure

Number of Banks
6

Currently there are 6 credit institutions operating in British Virgin Islands.