Most of the largest companies around the world have long been investing their financial assets and making the most profits on their monies offshore. But offshore investing isn’t only for the wealthy and large multi-million dollar companies; you can capitalize on offshore investments too.
One of the greatest benefits of offshore investing is how easy it is to migrate to the country you have been investing in. If you’ve been planning for your future and want to move to the Caribbean for your retirement, offshore investing is the way to go to make a profit on your hard earned money without it being heavily taxed.
Here, we’ve outlined 5 simple steps you need to take to successfully move your money offshore and capitalize on it for retirement.
- Pick a tax haven
The most critical step when deciding to move your assets offshore is choosing a tax haven that’s right for you. Although many of these countries may have lots of similarities, there are some differences that may matter most to you.
You’d want to choose somewhere with a convenient location for international travel but is still cost effective. Belize is one such place. Along with the aforementioned qualities, Belize also has a budding offshore financial services sector with attractive benefits. Belize offshore companies, for example, are a popular choice among foreign investors because of the country’s lack of taxation on any profits made from IBCs or assets transferred via a Belize Trust.
Another great retirement destination that doubles as a beneficial tax haven is Anguilla. Anguilla is a developing country in the Caribbean with lots of beautiful beaches great for enjoying endless days of relaxation. To complement its attractive locale, its offshore sector is equally as attractive to investors. Anguilla IBCs provide significant tax exemptions while maintaining international standards in the structure and administration of its financial services regulatory body. Along with IBCs, Anguilla also has LLCs to facilitate international business. Anguilla is able to incorporate companies instantly for anyone anywhere in the world at any time of day.
It is good to shop around and see which country has the most benefits to offer you, as well as which would be the most comfortable for your lifestyle when retirement comes around.
- Set up a foreign entity
After selecting what country you want to invest in, it’s time to decide what type of international company is right for you.
As mentioned in the first step, there are many legal foreign entities that are available for you to choose from. These include the IBC, LLC, trust, and foundation.
The IBC refers to international business company. IBCs are tax free and exchange control free private limited companies that have all profit-earning activities occurring outside its country of incorporation.
LLC refers to limited liability companies. LLCs offer its owners attractive features like tax exemptions and privacy but with additional asset protection.
An offshore trust is a conventional trust, but it is governed by the laws of the offshore jurisdiction in which it was formed; therefore giving the assets more protection against any legal action taken against the settlor in his/her home jurisdiction.
Private foundations are legal entities set up by an individual or group of individuals to safeguard and administer assets for a specific purpose or person based on the bylaws of the foundation. A private foundation does not have any legal requirements or reporting responsibilities, giving the founders maximum privacy.
There are established offshore financial services providers in the Caribbean that can help you decide which legal foreign entity is right for you.
- Hire a Nominee
One of the main benefits of investing your financial assets is the privacy that comes along with it. To maintain this privacy and confidentiality of your personal information, a nominee is used to physically conduct business on your behalf in the jurisdiction of incorporation. The nominee’s name will often time be the name that is listed, if necessary, on any registration documents filed in the offshore jurisdiction.
- Open an international bank account
Opening an international bank account is a fairly easy process, and one that your nominee can do for you to ensure that your personal information isn’t accessed through bank documents. Although, having that sort of information being breached is highly unlikely since in most cases it is illegal for tax collection agencies like the IRS to obtain any information from your nominee.
- Save your profits for retirement
Now that you’ve got your international company and offshore bank account up and running, you’re free to conduct business internationally and gain returns that you can save for your use during retirement without the worry of having it compromised by any government interventions.
