Black Ledger – Country Profile

The Cook Islands is one of the most powerful—but controversial—jurisdictions in the world for asset protection trusts. Its legal framework is designed to shield assets from foreign judgments, with strong debtor protections and virtually no recognition of foreign court orders. This makes Cook Islands trusts extraordinarily difficult to penetrate, especially for U.S. litigants. However, this same strength invites scrutiny from regulators and tax authorities, and any use must be paired with full compliance and legal substance. There’s no personal income or capital gains tax, but the jurisdiction is not suitable for banking or residency. Best deployed as an “asset protection flag” within a legally sound, multi-jurisdictional structure.