Offshore investment can be an important component of wealth and asset protection planning. This is a financial tax planning process but NOT tax evasion
Offshore financial planning is much more open than
used to be the case and still has many advantages. This is especially true with
the use of Trusts.
·
Not for tax evasion
·
Lost faith in British & Irish Banks. Never had
faith in Spanish Banks!
·
Strategic financial planning
The term “offshore”
originally comes from financial institutions located offshore from UK in the
Channel Islands, but is now used figuratively to refer to banks in many
regions, particularly Bermuda, the Cayman Islands, Bahamas and politically
neutral European jurisdictions such as Switzerland. The Channel
Islands , however, remain key offshore centres of excellence.
Individuals or organisations (including
companies and businesses) may be interested in placing assets offshore for a
variety of legitimate reasons, including:
1. The existence of a sophisticated
infrastructure of financial institutions and professional service providers
(lawyers, accountants, corporate services, etc). This is particularly true of
Jersey and Guernsey where most of the financial services professionals will
have trained in the UK
2. Tighter government regulation in the
region in which the financial institution is domiciled. This may allow for a
relatively favourable investment environment as compared to onshore.
3. Access to politically and
economically stable jurisdictions. This may be an advantage for individuals who
lack faith in the financial institutions in their ‘home’ country. After
experiences of the last few years many British and Irish people might have lost
faith in Banks. Then, of course, Spanish Banks really are something else!
4. Tax neutral. Having no added
local tax burden is a useful advantage for individuals who are not obligated to
pay tax on worldwide income, or who may be able to defer taxation. It
also allows individuals to structure their assets without having to worry about
local tax complications. This suits many expats.
5. As part of estate and/or asset
protection planning. Another advantage for expats.
6. Broader "global" view than
often found with onshore institutions.
7. Strong privacy and confidentiality
laws to help protect depositor's interests but not Tax evasion.
Financial Pages in Spain
Before considering any offshore
investments you should carefully decide you objectives and what you are trying
to achieve. The expertise in giving you advice needs to be at a high level. I
can recommend advisers with the expertise, if you email me. You might therefore
also like to read my previous post which covers getting good advice.
Tax
Evasion Warning
Individuals
with non-legitimate intentions may also seek to do business offshore, just as
they do onshore, incorrectly assuming that their activities may be more likely
to be overlooked or found acceptable. This of course is tax evasion and is
illegal. The only advice I can offer such individuals is to make themselves
legal and legitimate! Use an authorised and regulated adviser that I will be
happy to recommend to you if you email
me
In addition, it may be helpful to read a post on
Savings and Investments, which could easily form a part of the process outlined
above; http://expatsfrombritain.blogspot.com/2012/03/tax-efficient-savings-for-expats.html
You can write to me with
your personal experiences or to be put in touch with my recommended adviser by
sending me an email
David Goodall
Financial Pages in Spain
