Imagine waking up every morning to gentle trade winds, the sound of palm fronds rustling, and a view of turquoise waters lapping at white sand beaches. For many, to live in the Virgin Islands is the ultimate vision of paradise. In the US Virgin Islands, it can be your everyday reality.
As a US territory located just east of Puerto Rico, the USVI offers mainland conveniences and lifestyle with an undeniable Caribbean charm. Thanks to its status and location, relocating your business to St. Croix, St. John, or St. Thomas provides a unique opportunity to enjoy island life while maintaining US infrastructure, currency, and policies.
Beyond the obvious appeal of sun, sand, and sea, the USVI boasts benefits that make it an increasingly popular destination for entrepreneurs and remote workers.
From attractive tax incentives to Mid-Atlantic internet speeds, let’s explore what makes America’s Paradise such an appealing place to grow your business.
Island Incentives: Tax Benefits for Businesses
One of the biggest draws for companies considering a move to the USVI is its Economic Development Commission (EDC) program. EDC benefits allow eligible businesses moving to or operating in the USVI to take advantage of:
- 90% Exemption on Corporate Income Tax
- 100% Exemption on Personal Income Tax
- 100% Exemption on Gross Receipt Tax
- 90% Exemption on Most Excise Taxes
Combined with an average year-round temperature of 80°F, it’s easy to see why the USVI is one of the top destinations for aerospace, rum production, biotech, call centers, manufacturing, and maritime operations. The EDC program continues attracting new business investment while retaining companies that have called the islands home for decades.
Additional Financial Incentives
- Duty-Free Imports: Businesses can import equipment, machinery, raw materials, inventory, and personal items completely duty-free. This provides substantial cost savings.
- Foreign Trade Zone Access: USVI Foreign Trade Zone companies can further reduce operational expenses through deferrals, exemptions, and reduced duties.
Strategic Location for Business Growth
Beyond taxes, the strategic geographic position of the US Virgin Islands provides advantages that make it an increasingly popular destination for entrepreneurs and remote workers. Benefits include:
- Prime Access to Major Markets: Situated between North America, South America, and Europe, the USVI provides a prime geographic base to access major consumer markets across the Americas and globally.
- Maritime Transport Connectivity: With deep water ports and its position along Caribbean shipping lanes, maritime transport connectivity rivals major hub ports. Frequent air travel options through airports like Cyril E. King provide direct cargo and passenger routes to the US mainland and beyond.
- Export Incentives: Duty exemptions and access to foreign trade zones empower businesses to target export markets more profitably. The USVI’s status facilitates trade accords across the region.
Additional Business Advantages of Moving to US Virgin Islands
While tax incentives provide significant savings, they aren’t the only reason to relocate your company to the US Virgin Islands. Additional benefits include:
Highly Educated Workforce: With literacy rates over 90%, the islands deliver a reliably educated talent pool. Public and private K-12 schools and partnerships with colleges like UVI support work from overseas.
State-of-the-Art Infrastructure: As part of the US, the USVI delivers similar telecoms and transport that most mainland areas enjoy while retaining its Caribbean identity. Fiber optic networks provide fast internet to support business operations and growth across sectors. Sea and air travel hubs link to the world.
Business-Friendly Laws: The islands foster an accommodating environment for outside business through incentives and simplified legal and regulatory policies. Forming an LLC or captive insurance provider is straightforward. Supportive policymakers recognize commercial growth aids economic expansion, welcoming new business investment.
Cost Savings: The USVI empowers organizations to realize their profit potential through substantially lower operating expenses in areas from real estate and construction to utilities and compensation. Employees will appreciate the US Virgin Islands cost of living, as it is affordable. Combined with tax savings, relocating enables substantially higher margins.
Access to Knowledge and Capital: An established business community spanning rum production to financial services and biotech provides openings for mutual investment, knowledge exchange, and strategic alignment to drive shared results. Local leaders recognize cultivating partnerships expands economic capabilities.
Potential Disadvantages of Moving to US Virgin Islands
While there are mainly advantages to working and living in US virgin islands, there are some potential disadvantages to relocating a business here:
- Small Local Market Size: With under 105,000 residents, the islands have a limited local consumer base. Tourism helps expand market reach.
- Import Reliance: The USVI depends heavily on imports with limited local manufacturing. Shipping logistics should be examined.
- Infrastructure Challenges: Recent hurricanes exposed infrastructure vulnerabilities. While improvements continue, issues can cause power, connectivity, and transportation disruptions.
Navigating Logistical Considerations
Import reliance and small market size do necessitate examination of specific logistical considerations around expanding in the USVI:
- Supply Chain Logistics: Importing or exporting materials can be more complex. Shipping times and costs should be thoroughly analyzed to ensure profitable operations.
- Tourism Market Potential: Even with a modest resident population, over 2.5 million visitors come to the islands annually. For many businesses, tapping into this tourist market can significantly boost revenue.
- Strategic Planning: As with any expansion effort, fully modeling various growth scenarios enables the creation of contingency plans to overcome any potential obstacles.
However, the profound business incentives available often outweigh these manageable factors. Strategic planning helps overcome any potential obstacles.
Why Are the US Virgin Islands a Hotspot for Businesses?
Between the financial incentives, strategic location, modern infrastructure, and flexible business laws, it’s easy to see why moving to the USVI has become increasingly popular when relocating diverse industries.
Companies benefit from significantly lower operating costs and greater access to markets and resources than other Caribbean locales. Combining immense business advantages with unmatched tropical lifestyle perks, the USVI delivers an ideal environment to grow an enterprise.
Lifestyle Benefits of Moving to US Virgin Islands
While attractive from a business standpoint, the lifestyle is one of the biggest allures of the US Virgin Islands. Those looking to escape considerable city congestion, high costs of living, or cold winter climates will find the USVI’s relaxed pace and warm weather most appealing.
By relocating your home and business, you can enjoy island living to the fullest. Spend weekends boating, golfing, scuba diving, or simply relaxing on the beach with a good book. An efficient road system and short commutes reduce day-to-day stress while allowing more time with family and friends.
The islands’ multicultural heritage provides a vibrant arts and culinary scene to experience. Helping your employees with moving costs, like offering relocation packages, will help those within your company feel eager to expand to the US Virgin Islands.
Moving to US Virgin Islands: Frequently Asked Questions
What are the main industries and employers on the islands?
Tourism is the top industry, but rum production, financial services, textiles, electronics assembly, construction, and scientific research also thrive thanks to EDC incentives. Major employers include Cruzan Rum, Hess Oil, Vitelco Telecommunications, and Schneider Regional Medical Center.
Why did I choose the US Virgin Islands to move my business to?
I chose the USVI for several key advantages compared to other Caribbean destinations. As a US territory, it provides political and economic stability, modern infrastructure, a skilled workforce, and access to mainland funding and markets while still providing an unbeatable island lifestyle and strategic position near major shipping lanes.
The EDC tax incentives make it even more financially appealing. When comparing domiciles, the USVI came out on top.
Is healthcare available?
As a US territory, the islands have access to quality healthcare. Most major insurance is accepted. Schneider Regional Medical Center on St. Thomas is certified for advanced cardiac procedures, neurosurgery, etc. Specialty care may require occasional trips to Puerto Rico or Miami.
Can I enroll my kids in US schools?
Yes, the islands follow a US educational curriculum. Public schools are available but come with waitlists and challenges. Quality private schools like Antilles School, St. Croix Montessori, and All Saints Cathedral School are popular options.
What trends do businesses see after moving to the US Virgin Islands?
Many companies that relocate to the USVI experience faster-than-average growth and hiring rates. With operational costs reduced through incentives like tax savings, healthcare credits, and property discounts, businesses often reinvest that capital into expansion.
The moderate operating costs and talented workforce also spur the establishment of new headquarters and subsidiaries. Across industries from tech to rum production, the USVI continues to facilitate business investment and development.
Final Thoughts
The US Virgin Islands presents an appealing option for companies looking to reduce operating costs while maintaining access to American infrastructure and commerce.
The territory’s strategic geographic location, incentive programs, educated workforce, and business-friendly laws facilitate profitable expansion for organizations across diverse industries. If you’re considering a move to the Caribbean, look no further than America’s Paradise, the US Virgin Islands.
If you are considering relocating your company to the US Virgin Islands, hiring relocation professionals can help make the move easier.
Contact ARC Relocation today to set up a free consultation call.