On
this Page:
- BRITISH
VIRGIN ISLANDS GEOGRAPHY
- BRITISH
VIRGIN ISLANDS POPULATION LANGUAGE AND CULTURE
- BRITISH
VIRGIN ISLANDS GOVERNMENT
- BRITISH VIRGIN
ISLANDS ECONOMY AND CURRENCY
- BRITISH VIRGIN
ISLANDS ENTRY AND RESIDENCE
- BRITISH
VIRGIN ISLANDS BUSINESS ENVIRONMENT
- BRITISH
VIRGIN ISLANDS INVESTMENTS BY FOREIGNERS
British
Virgin Islands Geography
The British Virgin Islands comprise 36 islands
in the Caribbean sea of which only 16 are
inhabited. The islands are located about 80
kilometres east of Puerto Rico, north of the
Leeward Islands and adjacent to the US Virgin
Islands.The aggregate land area of the island
group is 153 square kilometres. The principal
islands are Tortola, Virgin Gorda, Anegada
and Jost Van Dyke.
Generally
the coral islands are relatively flat and
the volcanic islands are steep and hilly with
the highest point being 521 metres at Mount
Sage. The climate is sub-tropical, but the
humidity and high temperatures are tempered
by cooling trade winds.
The
island of Tortola (land of turtle doves) is
the largest of the British Virgin Islands
situated about 130 kms east of Puerto Rico
overlooking Sir Francis Drake Channel, and
has Road Town, the capital, and the international
airport (Beef Island). Frequent scheduled
flights operate to Puerto Rico. Time is (US)
Eastern Standard Time.
Little Forest National Park, a 36-acre wildlife
sanctuary on Virgin Gorda was once the site
of a Spanish fort whose stone walls are still
evident. The Coppermine on the southwest tip
of the island was mined by Cornish miners
between 1838 and 1867 and the mine shafts
remain today. Gorda Peak National Park contains
a variety of indigenous plants and has been
reafforested with mahogany trees. The island's
highest point is 521 metres. An intriguing
group of giant granite boulders form a beach
known as "the Baths" which are a series of
spectacular pools and grottoes flooded with
sea water.
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British Virgin Islands Population,
Language and Culture
The population of the British Virgin Islands
is approximately 31,150 (2012 est) and the
official language is English. The population
consists of a mixture of British, Spanish,
Dutch, Amerindian and Caribbean racial types;
in the last twenty years immigrants in search
of work from other parts of the Caribbean
have more than doubled the population. Some
relatively minor tensions exists between the
newcomers and the 'belongers' who see their
relaxed lifestyle threatened. Proposals for
tough new immigration laws are controversial.
Historically,
the Islands were settled by the Arawak and
Carib Indians. In 1493 the islands were discovered
by the Spanish, however, the first foreign
settlers were Dutch planters. The British
controlled the islands from 1666; they were
part of the Leeward Islands from 1872 until
1956, since when they have formed a separate
territory.
Economic
ties have been forged with the US Virgin Islands
rather than the West Indies Federation of
British Territories.
Tourism
is inevitably a dominant feature of the islands'
present culture. Visitor numbers for 2010
were 842,497 for 2010. In 2009, an overall
increase of 8.6% in arrivals had been recorded
(840,000) notwithstanding a drop of 1% in
cruise passenger arrivals.
Despite the BVI's status as a British dependent
territory (with which the islanders are content)
and many British influences, the prevailing
cultural influences are more American than
British. However, Road Town's picturesque
setting and sheltered harbour still offer
a glimpse of the easy lifestyle evolved over
the last 4 centuries by English, Dutch, French
and Spanish adventurers followed by plantation
owners and early settlers.
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British Virgin Islands Government
The Islands are a dependent territory of the
British Crown, and a member of the Commonwealth.
The legal system is based on English Common
Law. The Queen of England is the Chief of
State who is represented by a Governor appointed
by the Crown. The islands are largely self-governing
since the 1967 Constitution and to a limited
extent rely on UK statutes on international
matters. In 2002 the BVI Government said it
wanted to increase its establishment and asked
for some of the Governor's powers to be transferred
over, recognising the BVI's 'constitutional
maturity and prudential system of government'.
The Chief Minister Ralph T O'Neal was concerned
that rules for the conferment of Belonger
Status should be brought into line with the
granting of nationality under the British
Nationality Act, 1993, in order to remove
confusion over the granting of passports.
At
the end of February 2007, the UK and the BVI
government successfully completed negotiations
for a new constitution for the islands. Described
by Lord Triesman, British Minister responsible
for the Overseas Territories, "as an
important step forward for the territory,"
the new constitution will devolve significant
new powers to the BVI Government.
The
new constitution was approved by the BVI Legislative
Council in May 2007. This includes a chapter
on fundamental rights, setting out the key
human rights that will be protected for all
individuals in the territory. In the field
of international affairs, groundbreaking provisions
will allow for the devolvement of extensive
new powers to the BVI Government. The new
constitution will also give the BVI Premier
greater influence in setting the Cabinet agenda.
It also creates a new role of Cabinet Secretary
to facilitate the workings of the Cabinet.
The
Governor appoints an Executive Council, made
up of members of the House of Assembly. The
House of Assembly comprises 13 elected members
(nine representing district constituencies
and four the whole territory), one member
appointed by the Governor, a Speaker elected
from outside by members of the Council and
the Attorney-General as an ex-officio member.
Elections
in November 2011 saw a victory by the Virgin
Islands Party, with the election of Orlando
Smith as Premier. The next election is due
to be held in 2015.
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British Virgin Islands Economy
and Currency
The currency of the British Virgin Islands
has been the United States dollar since 1962,
although banks maintain accounts in sterling
as well. There are no exchange controls. The
two mainstays of the economy are tourism and
offshore financial operations. Minor industries
include fishing, rum distilling and construction.
Exports include fish, rum, sand and gravel,
fruits and vegetables.
Tourism
accounts for an estimated 45% of GDP. BVI
is also an established centre for the charter
yacht industry. Agriculture
is minimal since there is very little arable
land; the islands consist mainly of hills
and beaches with the exception of Anegada
which is very flat.
The
financial services industry in the British
Virgin Islands can fairly be described as
a runaway success, particularly in recent
years. There were 457,331 active companies
incorporated in the BVI by the end of the
third quarter in 2011, including 545 Limited
Partnerships. There were 17,056 new registrations
in the third quarter of 2011. There is no
doubt that the BVI is an attractive offshore
destination, offering stability, high levels
of privacy, good reputation, flexible legislation,
English language etc. Other centres have all
these things also; but the BVI seem to be
flavour of the month. The most important offshore
activities are trust management, mutual funds
and captive insurance. Banking has not been
encouraged, as an apparently successful defence
against money-laundering.
Minister
for Finance Ronnie W. Skelton told assembly
members in 2010 that the government had received
almost 60% (USD164 million) of its total revenue
from the financial services industry in 2009.
GDP
growth has been muted in recent years, but
GDP per head at USD30,341 in 2009 is one of
the highest in the world.
The
BVI is an associate member of the Organisation
of Eastern Caribbean States (OECS), which
is gradually constructing a free trade zone.
The members signed an economic agreement on
December 29, which will form an Economic Union
in the region. The new treaty updates the
Treaty of Basseterre, which first entered
into force in June 1981, and entered into
force on August 1, 2011. It will further remove
barriers to trade between national markets
in goods, services, movement of capital and
labor forces, which will transform the islands
into a single financial and economic space.
Eleven sectors have been listed in the treaty
for joint action. These include civil aviation,
agriculture, tourism, education, environmental
sustainability, marine, disaster response,
and telecommunications.
The
OECS includes the islands of Antigua and Barbuda,
Dominica, Grenada, St Lucia, St Vincent and
the Grenadines, Montserrat, St Kitts and Nevis.
Anguilla and the British Virgin Islands (BVI)
are associate members. The islands, except
the BVI, already share a number of institutions
including a central bank and a common judiciary.
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British Virgin Islands Entry
and Residence
All non-residents, including British citizens,
require a passport to enter the BVI, except
that Canadian and US citizens need only a
birth certificate, certificate of citizenship
or voter registration card. However, under
the US government's Western Hemisphere Travel
Initiative (WHTI), citizens of the United
States, Canada and Mexico will also have to
present a passport or other accepted document
that establishes the bearer's identity and
nationality, in order to enter or re-enter
the United States by air from within the Western
Hemisphere. This has applied to visitors to
the Caribbean since January 2008.
Visas
are given for up to six months' stay provided
that there is a return or onward ticket and
evidence of sufficient funds.
In
order to work in the BVI, a work permit is
needed, except for 'Belongers', naturalised
citizens and holders of a certificate of residency.
Work permits are issued only when there is
no suitable local applicant for the job.
At
the time of writing, in order to lease or
purchase land, non-Belongers must obtain an
Alien Landholding Licence. Applications for
a Licence must be accompanied by two personal
financial references, one bank reference,
two character references, police record, a
filing fee of USD200 (per individual) or USD300
(per company) is paid at the time of application.
Once the licence has been granted applicants
pay an acceptance fee of USD600 per person
and USD1000 per company. Licences carry a
2 or 3 year commitment to develop unimproved
land.
In
December, 2004, the government outlined the
details of a new immigration policy framework
in a bid to clarify the rules surrounding
applications for residence and ‘belonger’
status. Chief Minister Orlando Smith explained
that the Board of Immigration would make recommendations
in 2005 concerning those who applied for residence
status before January 1st 2003 and had lived
in the territory continuously for the last
twenty years. In June, 2005, 92 of these individuals
received residence and belonger certificates.
Approvals
for those applying for residency status after
January 1st 2003 are limited to no more than
25 persons per year. The government also stressed
that in all cases, individuals cannot be away
from the BVI for more than 90 days in any
calendar year if they want to qualify for
residency status.
Smith
acknowledged that controlling immigration
in the territory represented a “very
serious challenge” for the government,
and explained that a balance must be struck
between welcoming outsiders and protecting
the privileges afforded to BVI citizens.
In
March 2008, Premier and Minister of Finance
Ralph O’Neal announced in his budget
speech that comprehensive immigration reform
would be a priority in 2008.
"We
will amend existing legislation to implement
additional control measures. Current legislation
will be reviewed to ensure compliance with
international laws, human rights and other
conventions. As we embark on the reform process,
we will ensure citizen participation by conducting
regular consultations with representatives
of the community, advocacy groups and other
private sector organisations," he revealed.
As
part of this process, has begun preparations
to streamline immigration procedures by creating
a "one-stop process" for obtaining
entry permits and work permits.
For
further information, the Immigration Department
can be contacted at:
341
Waterfront Drive,
Ashley
Ritter Building,
Road Town,
Tortola,
BVI
Tel: 1-284-494-4399
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British Virgin Islands Business
Environment
The BVI have an excellent business infrastructure
with good telecommunications; this coupled
with the widespread use of the English language
and a legal system largely based on English
law makes the island a very convenient and
effective business base. The very large numbers
of offshore companies, trusts, insurers and
mutual funds on the islands are supported
by a well-developed and diverse professional
services sector.
To do business in the BVI (as distinct from
establishing an offshore trust or company)
a Trade Licence is required from the Trade
and Investment Promotion Department. The application
form is accompanied by a financial statement,
police record, two business references (for
the individual or the company applying) and
financial details of the proposed business.
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British Virgin Islands Investments
by Foreigners
Under the Pioneer Services and Enterprise
Ordinance, ten-year tax holidays and import
duty exemptions on capital equipment are available
for investors into enterprises for which there
is a 'special need' in the territory.
Under
the Hotel Aid Ordinance, ten- or twenty-year
tax holidays and import duty exemptions on
building materials and equipment are available.
The
Administration is generally supportive of
investment into a range of activities, including
food processing, tourist-oriented manufacturing,
film production, beverage production, yachting
services, and most recently, e-commerce.
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