In the last 10 years in the U.S. things have changed dramatically. There’s higher debt, higher unemployment, and a bigger government than ever before. The offshore world can bring back the choice, the opportunity, and the freedoms that used to be the norm in the U.S.
These offshore strategies are legal. There is a lot of misinformation out there about going offshore. Don’t believe the hype but do make sure you are fully informed.
There are three offshore havens that are the most popular:
- Tax Haven
- Asset Haven
- Investment Haven
A tax haven is nothing more than a country that imposes low or no taxes on foreigners who work, live, and do business in that country. Tax havens are safe places. They have very good rules and legal policies in place to prevent any type of illegal deals.
“Low-tax” means that these countries have tax rates of between 0% and 25%.
When you consider that the U.S. has the highest corporate tax rate in the world at 39.6%, you can see why businesses are starting to look elsewhere.
Personal tax rates should also be considered when looking at low-tax havens. Many people in the U.S. will pay income tax rates of 25% or more.
But as a U.S. citizen, you are taxed on your worldwide income, regardless of where you earn your money or where you choose to live. So if you move to Panama, you are still required to file and pay your income tax in the U.S.
An asset haven (like Singapore or Switzerland) is a place that has strong laws in place to protect your assets. Countries that are asset havens usually have very good financial and privacy laws. They are great places to establish a trust, an international business corporation, a family foundation, or just a bank account.
Unlike a tax or asset haven, an investment haven offers something that many people need today. An investment haven offers unique investment opportunities as well as having a good legal system that protects your investments.
These countries (Denmark and Uruguay, for example) offer benefits like investment accounts, great real estate investments, and also have stable currencies.
But keep in mind, some investment havens will have high taxes, just like some low-tax jurisdictions are not solid places to bank or invest.
The best plan is to spread yourself and your wealth among multiple havens, so you’re taking the best from each jurisdiction. It’s the old adage: you should live in one country, bank in another, and do business in a third.
You can move yourself, your finances, or your business to an offshore jurisdiction that suits your needs.
Or you can open a bank account, set up a trust or corporation, invest in international markets or buy real estate.
Offshore solutions are for people who really want to take control of their finances. So make sure you know exactly what your goals are and what you want to achieve by moving yourself or your assets offshore.