Nevis Multiform Foundation: Tax Treatment, Flexibility, and Setup Process

A Nevis Multiform Foundation is a highly adaptable asset-protection structure that can operate as a foundation, company, trust, or partnership while maintaining a single legal identity.

This flexibility allows wealth planners to shift between forms as strategic needs evolve, without triggering dissolution or loss of rights.

Established under Nevis law in 2004 and implemented in 2005, it offers a modern alternative to traditional wealth-structuring models by combining the protective features of multiple legal entities in one.

This article will guide you on:

• What Is the Nevis Multiform Foundation Ordinance?
• How flexible and transformable is a Nevis Multiform Foundation?
• How to set up a Nevis Multiform Foundation?
• What are the advantages and disadvantages of a Nevis Multiform Foundation?

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La información contenida en este artículo es meramente orientativa. No constituye asesoramiento financiero, jurídico o fiscal, ni una recomendación o solicitud de inversión. Algunos hechos pueden haber cambiado desde el momento de su redacción.

What Is the Nevis Multiform Foundation?

A Nevis Multiform Foundation (MFF) is a self-owned legal entity that combines the features of a trust, company, partnership, or traditional foundation, allowing seamless transformation between forms without re-registration.

Unlike typical foundations or trusts, it maintains legal personality, enabling it to sue or be sued.

Nevis Multiform Foundation Ordinance Framework

The Nevis Multiform Foundation Ordinance, enacted in October 2005, provides the statutory basis for establishing and operating multiform foundations in Nevis.

This legislation was designed to give both local and international clients a highly adaptable vehicle that can operate in one of several forms such as a trust, company, partnership, or traditional foundation and change between these forms over time without losing its legal identity or continuity of ownership.

A key feature of the ordinance is its robust protection against external legal challenges.

It explicitly shields Nevis foundations from the enforcement of foreign judgments related to forced heirship, community property regimes, or other inheritance rules that might conflict with the founder’s intentions.

This makes the structure particularly appealing for international estate planning, as it enables founders to bypass restrictive succession laws in their home jurisdictions.

The ordinance also sets out clear governance requirements, registration procedures, and compliance obligations, ensuring that while the foundation enjoys flexibility and privacy, it also operates within a transparent and legally recognized framework in Nevis.

Nevis Multiform Foundation Structure and Governance

• Founder(s): One or more natural or legal persons may establish an MFF by subscribing to its formation documents and contributing an initial subscription of assets.
• Management board & secretary: An MFF must have a management board and a secretary. The same person may hold both roles provided the secretary is not the sole board member.
• Registered agent & registered office: A Nevis-based registered agent is mandatory; the registered office is the agent’s address for official communications and filings.
• Optional supervisory board (protector): If provided in the constitution, a supervisory/protector body can oversee management and safeguard beneficiary interests.
• Beneficiaries or purpose: Beneficiaries may be named but are not required; an MFF can be established solely for a specific purpose. Templates in the Regulations contemplate both beneficiary and purpose foundations.
• Meetings: While the Regulations allow for board meetings and even require that auditors be notified, they do not set a statutory schedule such as a first meeting within a set number of months or a mandatory annual meeting. Instead, the frequency, format (in person or electronic), and notice requirements are typically determined in the by-laws.
• Records & registers: The MFF must maintain proper books of account and internal registers (including a register of beneficiaries) in legible form at the registered office (or another place the board decides), available for inspection by authorized parties.

How to Start a Nevis Multiform Foundation

The process generally includes:

1. Engage a Registered Agent in Nevis – Only licensed local service providers can incorporate an MFF.
2. Define the Multiform – Decide whether the foundation will initially operate as a trust, company, partnership, or standard foundation.
3. Prepare the Charter and By-laws – The charter outlines the foundation’s purpose, governance, and initial asset contributions, while the by-laws govern day-to-day operations.
4. Appoint the Management Board and Secretary – The MFF must have both roles. The same person may fulfill both titles, provided that the secretary is not the sole member of the management board.
5. Deposit Initial Assets – There is no statutory minimum capital requirement under the Nevis Multiform Foundation Ordinance, though it is common practice to make an initial endowment when the foundation is established.
6. Register with the Nevis Registrar – Upon submission of documents and payment of fees, the Registrar issues a Certificate of Establishment.
7. Maintain Compliance – Keep annual records, pay renewal fees, and adhere to Nevis’ ongoing legal and regulatory requirements.

Asset Protection and Privacy Advantages of a Nevis Multiform Foundation

Disadvantages of a Nevis Multiform Foundation

• Costs of Setup and Maintenance – Professional fees for registered agents, legal drafting, and compliance can be higher than for simpler offshore structures.
• Perception and Regulatory Scrutiny – Some jurisdictions may subject Nevis-based entities to enhanced due diligence due to its offshore status.
• Limited Recognition in Certain Countries – While Nevis law protects the structure locally, some foreign courts may not fully recognize its legal form or asset protections.
• Complexity for Smaller Portfolios – The multiform flexibility may be excessive for clients with straightforward asset holdings, making simpler alternatives more cost-effective.

Nevis Multiform Foundation Tax Treatment

By default, a Nevis Multiform Foundation (MFF) is exempt from Nevis income, capital gains, withholding, estate, and stamp taxes so long as it does not conduct business with Nevis residents, hold Nevis-situs assets, or have resident beneficiaries.

Foundations may elect Nevis tax residency; if they do, they file returns and are taxed at up to 1% (generally on net retained earnings), and can later revoke that election. This option is often used to strengthen treaty positioning.

Even when tax-neutral in Nevis, founders/beneficiaries must still consider home-country tax rules (e.g., reporting under FATCA/CRS where applicable).

Practical Uses of Nevis Multiform Foundations

Ideal for:

• Wealth management and consolidation (e.g., holding IP, real estate, investment vehicles).
• Succession planning and circumventing forced heirship.
• Charitable, pension, or employee-benefit structures.
• Holding digital assets, corporate control, or layered international strategies.

Conclusión

The Nevis Multiform Foundation offers a rare blend of flexibility, legal strength, and confidentiality, making it an attractive option for asset protection, estate planning, and diverse wealth management strategies.

Its ability to change form without losing legal identity, coupled with strong defenses against foreign claims and minimal local taxation, sets it apart from traditional structures.

As with any cross-border planning tool, professional advice is essential to ensure compliance with both Nevis and home-country laws.

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