International financial services and real estate currently play an important role in Nevis economy. International financial services are commonly referred to as offshore financial services, and these contribute to Nevis economy in many ways.
Nevis economy can be considered to be low tax, given that there are no personal income taxes; but domestic companies are required to pay tax on profits. For offshore companies, like Seychelles company, insurance, foundations, trusts and banks, Nevis economy does not impose any taxes on capital gains, income, profits, estate, gifts and interests, among others. Nevis economy has become very attractive as a result of the offshore financial services sector of the Nevis economy.
Nevis economy is also supported by the Fiscal Incentives Act which qualifies specific business for tax breaks, exclusion from duties on raw material imported into the island, parts and production machinery, as well as concessions.
Nevis economy has developed a successful real estate sector which enables foreign investors to build homes and set up businesses in Nevis and thereby contribute to the economy of Nevis. Economic development in real estate has helped to develop infrastructure and create jobs within Nevis economy. Nevis economy with regards to real estate is also associated with the Citizenship-by-Investment Programme which makes it possible for foreign nationals to invest in Nevis economy and then apply for Nevis citizenship.
The Citizenship-by-Investment Programme has been a major part of Nevis economy and has helped in accumulating funds for the Sugar Industry Diversification Fund. Investments into this fund are important to Nevis economy, as it was set up to help diversify the economy of Nevis following the closure of the sugar industry. This event negatively affected the economy of Nevis, and caused economic hardship due to the loss of livelihood suffered by sugar farmers and other related sectors.
Foreign exchange through tourism and trade are important to Nevis economy. Nevis does not have any exchange controls, which is positive especially for foreign investors wishing to do business in Nevis. Economic growth has been stimulated by banking, which too has gained strength in Nevis economy.
Sound and investor friendly economic policies contribute to stability in Nevis economy. This in itself is ideal for investment and doing business both on a domestic level and in the sense of non nationals who visit and frequently make this peaceful island their second home.