BVI's Foreign Investment Fourth Highest Globally In 2013
by Mike Godfrey, Lowtax.net, New York
04 February, 2014
The British Virgin Islands received more foreign investment last year than Brazil and India combined, according to statistics recently released by the United Nations Conference on Trade and Development (UNCTAD).
The Caribbean territory, home to about 27,000 people, attracted USD92bn in foreign direct investment in 2013. The figure is the fourth highest globally, topped only by the United States (USD159bn), China (USD127bn) and Russia (USD94bn). Brazil and India had FDI inflows of USD63bn and USD28bn, respectively.
The BVI's FDI in 2013 represents a 40 percent increase compared with the previous year.
However, the director of UNCTAD's investment and enterprise division, James Zhan, pointed out that in the BVI's case most of the money from foreign investors was quickly transferred in and out of the country, in contrast to most other countries, where FDI goes mainly into new acquisitions and projects.
Mr Zhan said that the growth in foreign investment in the BVI is likely to slow down due to efforts by the G20 nations to enforce greater tax transparency.
In the BVI there is no capital gains or capital transfer tax, no inheritance tax, and no sales tax or VAT.
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