A leading Bermuda businessman has proposed a scheme which will effectively see that territory’s citizenship put up for sale
In an article written in today’s Royal Gazette, businessman Brian Duperreault, chairman of Caroline Bay Ltd., has proposed the establishment of what has been termed a ‘Family Office Plan’ as a way of resurrecting the marina development which ran into financial difficulties and ceased operations in 2018 and reinvigorating Bermuda’s economy. Duperreault calls the proposal an “innovative solution” to aid the revival of the country’s economy in light of the coronavirus pandemic and other ongoing challenges faced by the government.
In exchange for receiving permanent residency in Bermuda, the Family Office Plan encourages high net worth individuals to establish offices on the island from which their investments, insurance, taxes, charitable donations, personal property, security and other family matters would be managed from a special economic zone created at Caroline Bay. As permanent residents of Bermuda, Duperreault suggests that a family’s wealth and inheritance would then be governed by and taxed under Bermuda law, although at present properly established Bermuda trusts and other legal structures already offer this benefit without the additional requirement of citizenship.
In order to qualify for the scheme, the family office would have to meet certain criteria including the purchase of real estate or a residential unit in the special economic zone, hiring Bermudians as part of its workforce, leasing physical office space on the island and investing in the local community.
Duperreault also sets out some of the perceived benefits of the scheme which is designed to create a tangible effect on the economy such as providing the territory with new, external sources of capital, expanded opportunities for employment in both international business and traditional service industries, renewed interest in real estate on the island and an increase in government revenue.
