Part 4: Spotlight on the British Virgin Islands (BVI)

Why set up a Family Office in the BVI? 

When establishing a family office, choosing the right jurisdiction is one of the most critical decisions. Family offices require a stable, efficient, and secure environment for managing and preserving wealth across generations. The British Virgin Islands (BVI) has long been recognised as a premier jurisdiction for wealth management, offering a wide range of financial structures tailored to family offices.

From tax neutrality and legal stability to flexible investment structures, the BVI provides a compelling environment for family offices looking to safeguard assets, optimise tax efficiency, and maintain confidentiality. We explore each of these in the article below. 

1. Tax efficiency and neutrality

One of the strongest advantages of the BVI is its tax-neutral environment. The jurisdiction imposes:

• No capital gains tax
• No inheritance tax
• No estate duty
• No corporate or income tax on offshore entities

For family offices, this tax neutrality ensures that wealth can be accumulated, preserved, and transferred across generations without incurring unnecessary tax burdens. This enables families to focus on long-term wealth management and strategic investment without the complexity of navigating multiple tax obligations.

2. Strong legal framework and stability

The BVI operates under English common law, providing a well-established and predictable legal framework. This stability is essential for family offices structuring trusts, investment vehicles, and succession plans. The jurisdiction has developed specialised financial structures such as:

• BVI vista trusts – Allowing families to retain control over assets while benefiting from trust protections.
• BVI reserved powers trusts – Enabling the settlor to maintain key decision-making powers over the trust.

These structures offer legal security while ensuring family members remain actively involved in wealth management.

3. Privacy and confidentiality

High-net-worth families value confidentiality when managing wealth, and the BVI provides strong legal protections for privacy. Unlike many jurisdictions that require public disclosure of financial structures, the BVI maintains strict confidentiality with limited reporting obligations.

• Ownership details of BVI Business Companies (BCs) are not publicly accessible.
• Trust and investment structures are protected by robust privacy laws.

This level of confidentiality allows family offices to operate with discretion, shielding financial affairs from public scrutiny.

4. Cost-effectiveness and efficiency

Compared to other wealth management hubs, the BVI offers a cost-efficient regulatory environment. Family offices benefit from:

• Lower setup and operational costs compared to other financial centres.
• Streamlined incorporation processes for trusts, funds, and business companies.
• Minimal corporate governance requirements, reducing administrative overhead.

These advantages make the BVI an attractive jurisdiction for families looking to maximise wealth while minimising unnecessary expenses.

5. Stable political and economic environment

The BVI is a British Overseas Territory, benefiting from political stability and strong regulatory oversight. This stability reassures family offices that their wealth is managed in a jurisdiction with:

• A reliable legal and financial system.
• A pro-business regulatory framework.
• Strong protections against political and economic uncertainty.

For families seeking a secure and neutral jurisdiction, the BVI provides a safe environment for long-term wealth management.

What tailored solutions does Ocorian BVI offer Family Offices? 

Family offices require flexible financial structures to manage investments, trusts, and inheritance planning. The BVI offers a suite of customised solutions, including:

1. BVI Business Companies (BCs)

BVI Business Companies are a preferred structure for family offices due to their flexibility and tax benefits. Often used for holding global assets, managing cross-bored investments and structuring join ventures, BVI BCs benefit from zero taxation on income, capital gains, or inheritance, making them an optimal vehicle for intergenerational wealth preservation.

2. BVI Vista Trusts

BVI Vista Trusts allow families to retain significant control over their wealth while ensuring proper succession planning. These trusts are ideal for Protecting family assets from external claims and preserving wealth across generations while maintaining governance control.

Unlike traditional trusts that require independent trustee management, Vista Trusts enable families to direct investment strategies without compromising legal protections.

3. BVI Reserved Powers Trusts

Reserved Powers Trusts grant the settlor key decision-making powers over the trust, including the ability to appoint or remove trustees, control over investment strategies and the right to modify beneficiary arrangements.

This structure allows family offices to maintain active oversight of trust assets while benefiting from the legal protections of a trust arrangement.

4. BVI Approved Fund

Family offices seeking pooled investment structures can utilise the BVI Approved Fund, which provides a streamlined regulatory framework, a cost-effective way to manage shared wealth and flexibility to invest in a variety of asset classes.

This structure is ideal for families looking to manage wealth collaboratively while benefiting from professional fund management.

5. BVI Incubator Fund

For families interested in venture capital or early-stage investments, the BVI Incubator Fund offers a low-cost, flexible structure for funding start-ups and emerging businesses. This fund is particularly attractive to families focused on impact investing or entrepreneurial ventures.

6. BVI Private Investment Fund

The BVI Private Investment Fund is designed for family offices that require a customised investment vehicle. This structure is perfect for families looking to create a dedicated investment platform that aligns with their long-term financial goals.

How can Ocorian help? 

Ocorian has a wealth of experience and offers a full suite of tailored of corporate, funds and fiduciary services across a network of 20+ wholly owned offices spanning all the world’s financial hubs, including Hong Kong. 

The British Virgin Islands stands out as an ideal jurisdiction for family offices paired with a wide range of financial structures, the BVI provides tailored solutions to meet the unique needs of family offices. Whether managing multi-generational wealth, structuring private investments, or preserving family legacies, the BVI offers a world-class jurisdiction for family offices seeking security, flexibility and efficiency.

Our clients are at the heart of what we do. We offer enhanced and expert services to our clients, wherever they are located.