1. LEGAL LANDSCAPE FOR NEXT 12 MONTHS

The Turks and Caicos Islands (“TCI” or the “Islands”) are based in the northeastern Caribbean, have the status of a British Overseas Territory (“BOTC”) and are governed by a locally elected Parliament, with a British appointed Governor. The Islands have the same status as other BOTCs in the region, like Anguilla, Bermuda, BVI, and Cayman.

TCI has a common law legal system, based largely on UK laws, and right of appeal to the Privy Council in London. The local currency is the United States Dollar.

The Companies Registry and Land Registry provide a modern, transparent and legally reliable system of registration for companies and title to land. The land registration system is the Torrens system, which is deemed to be one of the soundest in the English speaking world. The system provides conclusive evidence of the ownership of, and interests in land, all encumbrances and appurtenances on title, including all charges, mortgages, restrictions, restrictive agreements, cautions, benefiting or burdening written easements, and leases of the land. The Torrens system provides for the indefeasibility of title, that is guaranteed by the Government to be accurate.

With most TCI attorneys, magistrates and judges having first qualified in the UK, Canada, Jamaica or other highly reputable large Commonwealth countries or renowned Caribbean jurisdictions, before admission to the Turks and Caicos Islands Bar or Bench, the quality and integrity of the Bar and Bench is highly respected.

TCI continues to maintain a tax efficient and regulated framework aimed at attracting both foreign investors and protecting local residents. TCI imposes no direct taxes, including no income, capital gains, gift, inheritance, succession, estate, wealth, dividend or corporate taxes and no annual property taxes. Government revenue is instead generated through a series of indirect taxes (such as hotel, restaurant & tourism taxes, customs import duties, one-time stamp duty on real property purchases (or share transfer duty on transfers of shares in landholding companies), and departure tax. Revenue from the financial services sector also represents a substantial share of Government income.

In order to modernise key statutes, in recent years, there have been amendments to the Companies, Trusts, and Insolvency Acts, which have largely followed the successful BVI models. TCI Government has established and funded a recent body, TCI Finance, to promote the local finance industry.

TCI maintains a comprehensive regulatory framework that oversees nearly all segments of the financial services industry, including banks, insurance providers, brokers, agents, company management firms, trust companies, investment dealers, mutual fund administrators, and money transmission businesses.

The Financial Services Commission (FSC) operates independently from the TCI Government and is responsible for supervising and regulating all licensed entities under the financial services regulatory statutes, and for monitoring financial services activity across the jurisdiction, including companies, banks, trusts, insurance companies, anti-money laundering & anti-terrorism laws & procedures.

TCI’s anti-money laundering framework reflects international best practices. Combating money laundering and terrorist financing is a key priority for the Government and the FSC. Local service providers are required to comply with the applicable regulations and may be subject to regular compliance audits by the FSC.

As a result, any individual or entity seeking to establish a legal structure or obtain licensing in TCI must meet the relevant regulatory obligations. TCI’s anti-money laundering regulations continue to be strengthened to align with international standards and evolving FATF requirements and are also complaint with The Global Forum on Transparency and Exchange of Information for Tax Purposes (the Global Forum) with regards the International Standard on Transparency and Exchange of Information on Request (EOIR). TCI is open to sharing information with foreign jurisdictions.

There are a number of tax information exchange agreements which TCI has entered into with various countries whereby TCI has agreed to co-operate with relevant jurisdictions in tax matters through the exchange of information. www.gov.tc/eoi/

More generally there have been legal updates in 2025 in particular that should reassure investors that TCI laws progress in line with other major jurisdictions regarding equality, transparency and integrity:

a) Recognition of same sex marriages by the TCI Court of Appeal

In 2025 the TCI Court of Appeal ruled that the Immigration Act shall be construed with the definition of “spouse” being met by a same sex marriage which is lawful overseas.

b) Ultimate Beneficial Ownership Disclosure for Companies

From 30 June 2025, the Beneficial Ownership (Amendments) Regulations 2025 expanded access to foreign and domestic competent authorities with responsibilities for combatting money laundering and general law enforcement.

Additionally, the 2025 Regulations expanded access applications to the following persons who satisfy a “legitimate interest” requirement (being that the information is sought for the purpose of preventing, detecting, investigating, combating or prosecuting money laundering or its predicate offences or terrorist financing). Persons with a legitimate interest who may apply for access are limited to those:

(1) engaged in journalism or bona fide academic research;

(2) acting on behalf of an organisation whose purpose includes the prevention or combating of money-laundering, predicate offences or terrorism financing; or

(3) seeking information in the context of a potential or actual business relationship or transaction with the company about whom the information is sought

c) All Foreign Probate to be re-sealed by TCI Courts

The Probates (Re-sealing) (Amendment) Act 2025 expands the powers of the TCI Court to seal (review and apply the Court seal to) a probate or letters of administration in respect of the estate of a deceased person, which was granted by a court from any country worldwide, including a non-Commonwealth country. This enhances the integrity of Estates that include TCI assets, particularly where worldwide there have been more frauds relating to the assets that are part of international estates.

d) Landholding Share Transfer Duty Administration & Reporting

The administrative, valuation and one time tax reporting following the purchase of shares in a TCI landholding company have been enhanced and transferred to the Ministry of Finance, in order to reduce the risks of under reporting when shares are transferred or issued in a TCI landholding company. This ensures the process goes through the equivalent checks and balances as an asset transfer of real property.

2. UPCOMING THREATS AND OPPORTUNITIES

The coming year presents both challenges and opportunities.

On the opportunity side, TCI laws can be advantageous for individuals looking to relocate to TCI, especially those individuals seeking residency for all types of tax efficiency and succession planning reasons. There is relatively straightforward permanent residency status based on a minimum investment in a home or business of US$1 million.

The hotel, tourism, leisure and real estate sectors have remained robust over the last year. Luxury tourism remains a central pillar of the TCI economy. The Islands continue to attract substantial foreign direct investment (mainly from north Americans, with some British, European and south American investors), particularly in five-star hotel/ condominium resorts, professionally managed luxury villa communities and independent villas/estates.

TC Sotheby’s International Realty reported that at year-end of 2024 total sales values closed in TCI during that year were US$693.5 million. Overall sales’ values for the first three quarters of 2025 were reported as significantly lower, due to a 25% decrease in sales volume, but the sales’ prices have remained resilient. The total current value of listed real estate on the TCI market (largely due to new pre-construction condominium and villa projects exceeds US$1billion).

Real estate, business and general investment was over recent decades concentrated on Providenciales, the country’s primary commercial and tourism centre, but investment is growing substantially in the capital island Grand Turk and in South Caicos (both with modernised airports), and North Caicos (with plans substantially to renovate their airport) and some of the other smaller more private cays.

Providenciales also has facilities for privet jets and yachts, which have been modernised or built over recent years to welcome HNWI and UHNWI investors.

On the threats side, there is uncertainty of immigration status/rights to work within some industries (such as real estate brokerages) for some working residents and certain business licensing categories potentially being further restricted for foreigner investors, but all these concerns are being considered by Government so that investors should be reassured.

3. WHAT ADVICE YOU WOULD GIVE TO CLIENTS

Thorough legal due diligence of properties, in particular homeowner associations, condominium associations (strata corporations) and businesses is essential before investing or relocating to the Islands. Strategic planning is highly advisable to ensure the investor can obtain all the Government licences, permits or permissions they may require to build, renovate and/or rent out a property or operate a business and/or employ employees or contractors.

Tax implications with a home country professional adviser should be evaluated before making decisions regarding residency or relocation to TCI, as a tax efficient base for long-term wealth protection, lifestyle choice and/or operating a business.

Each client’s circumstances are unique. Having expert advice ensures optimal structuring of investments, residency, holding of assets (including real property, all forms of personal property, yachts, jets and other forms of investments, insurance and estate planning); and the holding and operating of businesses (including its assets and staff).

4. HOW YOU MAINTAIN CLIENT SATISFACTION

We understand that each client’s circumstances take time to listen to carefully and we provide clear, accurate, commercial and compassionate guidance. Every investor is different, and we make ourselves highly available and tailor our approach to ensure each client is advised fully on the laws, procedures and timelines for their individual needs and goals.

The Stanbrook Prudhoe team offers a depth and diversity of expertise, experience and background across the Atlantic and throughout the Caribbean. We offer a collaborative approach which allows us to offer a seamless and comprehensive service, combining technical excellence, with empathy and discretion.

We offer reasonable fee and billing transparency, letting clients know regularly compared to fee estimates.

5. TECHNOLOGICAL ADVANCEMENTS

Virtual client meetings via Zoom and other platforms offers, quick, simple, more cost and time effective communication, legal and practical advice than in person meetings and high volumes of emails. Many foreign investors only seek legal and practical advice when they are outside TCI, so remote meetings are now a daily convenient means of working together. All our attorneys work via our highly protected Cloud system, so they are available to work efficiently from the office, at home or when travelling outside the Islands for business.

TCI does not currently have any legislation or taxation for digital assets. However, they are in the planning stages for a comprehensive cryptocurrency and digital asset regulatory framework.