Offshore – Tax Free

In a world prone to changes and insecurity, managing finances in a way that works out in your best interests in the long run and according to your own circumstances is of utmost importance. Many of us hear about offshore tax free companies, accounts and trusts, but most times do not have the necessary knowledge or resources that would enable us to wisely and fully explore our offshore tax free options.

It is no doubt that more and more, we see how the brunt of economic crises falls on the shoulders of tax payers, most of whom are average working class people and business owners with mortgages, rent, child care expenses and personal commitments. Offshore tax free accounts and companies do not seem fitting for most of us, but they are one of the ways in which major savings and financial arrangements can be made through offshore tax planning.

Offshore tax free accounts in particular come in handy to any of us who at no point in our lives thought that we would have settled or worked in a country other than ours. Expat workers and retirees opt for offshore t tax free banking because it helps to minimize taxes both on interest accrued on income and savings. Furthermore, expats are able to access international offshore tax free banking services via their offshore bank.

Offshore tax free companies are widely used for many reasons. These range from shielding assets, economizing on taxes, conducting international trade and business; and getting these things done privately. Offshore tax free banking is also a gateway to receiving tailored banking services, investment and tax advice, credit and debit card facilities and offshore tax free online banking, which make life so much easier. A UK citizen is comforted with the idea of offshore tax free banking in the BVI or the English speaking Caribbean because of the close political and historical ties shared with Britain, and even more so if the offshore bank is a British branch that offers loans, mortgages and insurances as though they were banking in the UK itself. In this way, offshore tax free banking is an extra opportunity to resolve so many personal and business matters. With offshore tax free banking, we are also looking at multicurrency accounts, merchant and investment accounts, which serve to enhance business success, earnings and growth in an environment free of taxes.

Offshore tax free companies and entities are important to the world economy in that they largely influence capital and investment flows as significant sums of funds invested in offshore tax free countries facilitate the financial and social development in countries with offshore financial sectors. Offshore tax havens are able to further develop as countries with sound economic and political stability due to financial progress accomplished through the provision of offshore tax free services and products. Most offshore tax free countries embarked upon offshore financial services as a means of diversifying their economies, which in most cases are typically based on either agriculture or tourism.

An important aspect of developing sound offshore tax free policies also has do with sturdy and unquestionable offshore frameworks through legislation established to govern offshore tax free activities. By developing offshore tax free sectors, countries are able to provide employment and thus enhance the spending power of its citizens and residents. This spills over into infrastructural development as offshore tax free corporations establish their offices in offshore tax havens and are provided with offshore tax exemptions.

Offshore tax free entities such as offshore trusts and foundations are ideal for carrying out both family and corporate affairs privately. Offshore tax free trusts are used for protecting and saving funds set aside for under age children and close relatives or could be used for setting aside funds to assist children with furthering their education. An offshore tax free trust can also be used for keeping property and valuable possessions in the name of a family for a number of generations. This is especially beneficial to high net worth individuals such as executive corporate managers of huge firms, doctors, pilots, lawyers and engineers who are at high risk of litigation are able of safe guarding a reasonable portion of their assets by placing them in an offshore tax free trust or foundation.

Offshore tax free trusts differ from offshore foundations on the basis that an offshore tax free trust is legally owned by the trustee, who is able to claim the assets of the trust, whereas an offshore tax free foundation is an independent legal person and because of this is not legally owned by anyone or corporation, which means that the assets placed in an offshore tax free foundation cannot be claimed. The only way that these assets can be acquired is by establishing a Letter of Wishes which is similar to a Trust Deed, for transferring the foundation’s assets to a beneficiary. Offshore tax free foundations provide a greater extent of anonymity to persons and firms that wish to keep their banking and investment activities strictly confidential. Offshore tax havens generally state the minimum and maximum number of beneficiaries that an offshore tax free foundation can have.

Offshore tax free international business companies (IBCs) can be used in a variety of ways. Offshore tax free IBCs are frequently used by businesses wishing to expand their services to other countries where they believe they are better able to increase sales. Offshore tax free IBC uses include trading and holding, consultancy work and internet services. Setting up an offshore tax free company is usually a prerequisite set by most offshore tax free banking institutions. Offshore banks which offer merchant account facilitate the processing of online payments, thus allowing online companies the opportunity to experience quicker turnovers and providing services to a wider market through offshore tax free multi currency facilities which make it possible to receive and make payments in a variety of currencies. An offshore tax free international business company is an ideal way to expand a company or for venturing into new businesses.

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