S PAC E FOR S UBSTAN CE:
IMPLICATIONS, OPPORTUNITIES AND IMPACT ON THE BVI COMMERCIAL AND RESIDENTIAL REAL ESTATE MARKET
By CHRIS SMITH Managing Broker Coldwell Banker
T
he Economic Substance Act requires that a company that is tax resident in the BVI must have adequate staff and office space in the BVI itself. How this will be determined or how strictly it will be enforced remains unclear but one thing that is certain is that the BVI has to up its game in terms of quality infrastructure to accommodate this new demand.
16
BUSINESS INSIGHT | BVI Means Business
We have not seen a large immediate increase in requests for either office space or residential accommodation but an increased demand is still anticipated. Now is the time for current landlords and those considering investing or developing property to make smart choices with their future projects and in terms of renovating or repairing existing structures. If, because of this new legislation, BVI companies have to restructure because of logistical needs that make the BVI impractical for a physical presence, or if new businesses are considering where to set up – a like-for-like comparison between BVI and our rival Caribbean jurisdictions is inevitable. How does our infrastructure for business and residential accommodation hold up to such scrutiny? The BVI has many opportunities to expand and improve its inventory in each category.
