BVI Trust

The BVI Trust Breakdown

ABVI Trust, Highlighted

A trust run through a Private Trust Company: the BVI route for holding assets across generations without putting your name on a public company file.

A BVI trust is a trustee-held arrangement under the Trustee Act: the settlor puts assets into the trust, the trustee holds legal title, and the beneficiaries benefit under the trust deed [1][2]. The Otonomos version pairs the trust with a Private Trust Company (PTC), a BVI company that acts as the trustee. A PTC can act for one trust or several, and is exempt from needing a trust licence as long as it stays unremunerated and uses a registered agent that holds a Class I trust licence [1][4]. For the founder, that means the trustee role sits in an entity the family can influence rather than a third-party institution. Add the Virgin Islands Special Trusts Act (VISTA) and the trustee can hold BVI company shares without having to manage the business [1][3]. BVI law trusts are generally free of income, capital, gift and estate taxes, with exceptions we cover below [1][3].

360 years
Maximum perpetuity period for BVI trusts created after May 2013 [1]
0
BVI income, capital, gift or estate taxes on BVI law trusts, subject to exceptions [1][3]
$12,405
Otonomos Starter Kit, listed on the order page [10]
Section B

What makes it distinct

Four things a BVI trust does that a plain holding company does not.

VISTA
The trustee holds the shares, you keep running the company

A VISTA trust lets a settlor place BVI company shares in trust while the trustee stays out of administrative and managerial responsibility, so the founder or nominated directors can keep running the business [1][2][3].

HEIRSHIP
Firewall against forced-heirship claims

The BVI has no forced heirship regime of its own, and the Trustee Act includes firewall provisions (s83A) that shield a BVI trust from foreign succession rules and judgments [1][2].

PRIVACY
A thin public footprint

A PTC's publicly filed memorandum and articles only need to state that it is a private trust company, not name directors, shareholders or trusts [4]. Beneficial ownership data sits with the Registrar and is disclosed only to authorities or on a showing of legitimate interest [5].

DURATION
Built to last generations

Trusts created after May 2013 can run for up to 360 years, with wait-and-see provisions, and settlors can reserve certain powers without invalidating the trust (s86(2)) [1].

CBVI Trust vs Cayman Private Foundation vs Panama Foundation

Three vehicles for long-horizon holding structures, built on three different legal ideas.

BVI Trust (with PTC)Cayman Private FoundationPanama Foundation
Legal formTrust: trustee holds legal title under a trust deed; a PTC can act as trustee [1][4]Foundation company with no members, overseen by a Supervisor [8][9]Foundation under Law 25 of 1995, run by a council [11]
Tax on the vehicleNo BVI income, capital, gift or estate tax on BVI law trusts; exceptions for BVI-resident beneficiaries, BVI land or BVI business [1][3]No direct taxation of companies in Cayman [7]Exempt from Panamanian taxes except an annual fee; distributions exempt if only non-Panamanian assets and income [11]
Who runs itTrustee, with powers the settlor can reserve; VISTA lets the trustee stay out of managing BVI company shares [1][3]Directors, plus a mandatory Supervisor once memberless [8][9]Council: three members if individuals, one if a corporation [11]
Public recordA PTC's filed memorandum and articles need not name directors, shareholders or trusts [4]Memberless, so no shareholder register to disclose [8][9]Charter is filed publicly and lists council, registered agent and founder (a nominee can be used) [11]

A trust runs on trustee duties, a foundation on a charter and a council or board. Which one fits depends on where your family, assets and succession rules sit; get advice before choosing.

Section D

What to keep in mind

01
Someone has to be a licensed trustee, or a qualifying PTC

Professional trustees are regulated by the BVI Financial Services Commission [1]. A PTC avoids the trust licence only if it is a BVI company that states it is a PTC in its memorandum, uses a registered agent with a Class I trust licence, does no remunerated trust business and does not solicit the public [4]. Its trust business is limited to related trusts, meaning beneficiaries who are connected to the settlor, a charity or the settlor [4].

02
Ownership information is reported, just not published

BVI beneficial ownership data is held by the Registrar through the VIRRGIN platform, which replaced BOSS in 2025. Disclosure to non-authorities requires a legitimate-interest request and is limited to holders of 25% or more; the amendments do not create a public register [5]. The Trustee Act also provides for a register of trusts in an entity's ownership structure, with access for persons showing legitimate interest [2]. Trustees must keep trust records for at least five years [1].

03
Economic substance depends on what the PTC does

A trust is not itself a legal entity, but a BVI-incorporated PTC can fall within the BVI economic substance rules if it carries on a relevant activity, such as holding equity or lending. Acting as trustee is generally not a relevant activity [6]. Reporting goes through the registered agent to the International Tax Authority within six months of the financial period end [12].

04
Reporting abroad still applies

The BVI has implemented FATCA and CRS and is party to tax information exchange agreements, and trustees cannot be exempted from AML obligations [2][3]. BVI tax neutrality does not decide tax elsewhere: the treatment depends on the settlor, trustee, beneficiaries and other jurisdictions involved [3]. Speak to a tax adviser in your own jurisdiction.

ECosts

What Otonomos charges to set one up.

STARTER KIT
Trust Initialization & Settlement (one-time)included
Annual Trust Service Fee (annual)included
Incorporation (one-time)included
Government Fee (annual)included
Economic Substance Filing (annual)included
Registered Address & Office (annual)included
Total$12,405
PRIVACY PACKAGE
Corporate Director (annual)bundled
Nominee Shareholder (annual)bundled
Total$7,200
POPULAR ADD-ONS
Corporate Director (annual)$4,800
Nominee Shareholder (annual)$2,400
Change of Beneficiary (one-time)$810
Cross-jurisdictional guidance & structuring advice$2,000
Section F

Get started

Ready to actually set one up?

The order page has the live pricing, add-ons and checkout. This page was just the homework.

§Sources

Frequently Asked Questions

Usually yes: professional trustees are regulated by the BVI Financial Services Commission. The exception is a qualifying Private Trust Company, which can act as trustee without a trust licence if it is unremunerated, limited to related trusts and uses a registered agent holding a Class I trust licence.

To a degree. The Trustee Act confirms that reserving certain powers, such as choosing governing law or appointing and removing trustees, does not invalidate the trust. A VISTA trust also lets the trustee hold BVI company shares without managing the company.

The trust deed is not filed. A PTC's public filing only needs to say it is a private trust company. Beneficial ownership information is held by the BVI Registrar and is not a public register, though access can be requested by parties who show a legitimate interest.

BVI law trusts are generally free of BVI income, capital, gift and estate taxes, with exceptions for BVI-resident beneficiaries, BVI land and BVI business. Tax where you, the settlor or the beneficiaries live is a separate question for a local adviser.