Take your wealth offshore and get the benefits you need.

Are you still holding all of your wealth in domestic accounts? You could be missing out on asset protection, advantageous taxation, and international investment opportunities back home — there so SO many ways to tap into financial freedom. One of the hardest decisions is which jurisdiction offers the most advantages to international investors.

Low-cost jurisdictions may solve that problem for you.

A low-cost jurisdiction is a global financial location that is utilized by savvy investors to take advantage of favorable taxation. Typically, these jurisdictions offer tax incentives for international investors. The tax incentives even benefit these jurisdictions because since many foreign investors are coming from all over the world, it encourages the growth of their economy by attracting wealth from other countries.

Favorable tax systems draw individual investors and corporations from around the world. They provide banking services to foreign entities, allowing them to save money, and making it more appealing than continuing their financial business in their home countries.

The investor or corporation is not the only one that is getting something from this arrangement. The nation draws in capital to its banks and other financial institutions. The wealth that is gained is used to maintain or create a thriving economic sector, making it more attractive for global investors. Even though the taxation may be small, these jurisdictions are earning significant amounts of money, they would not be gaining otherwise. Additionally, foreign investments often create jobs for the local community.

What to do in a low-cost jurisdiction

Primarily low-cost jurisdictions are utilized for offshore banking. International banks in the Caribbean typically offer high security and privacy, which many individuals do not receive with their domestic banking systems. Offshore banks also provide a range of funds and investments that aren’t available in your home country. It’s an easy and great way to diversify your portfolio.

Low-cost jurisdictions are also the perfect place to form an offshore company. An offshore company allows you to move your assets to an offshore company that protects them, diversify your investments, or even save money while living abroad.

The Caribbean

The Caribbean is known for sandy beaches, high rates of tourism, and expat communities from all over the world. What some don’t know is that it can be the perfect place to hold wealth offshore. Many nations in the Caribbean offer attractive taxation, privacy, and regulations around banking and taxation.

Let us take a look at low-cost jurisdictions in the Caribbean that are drawing foreign investors from around the world.

Bahamas

The Bahamas is a top tourist destination and also a hotspot for its offshore financial market. It is one of the perfect destinations for forming an offshore company.

The country, with nearly 700 islands,  has a thriving tourism sector and thriving political climate, drawing in individuals from all over the globe. Not only are people enjoying the tourist attractions, but they are also enjoying the Bahamian banking system that allows foreigners to open bank accounts, register offshore companies, and manage offshore trusts, all with tax advantages.

This Bahamas was the first country in the Caribbean to implement strict banking secrecy laws, stating that information pertaining to offshore bank account holders is only permitted to be disclosed by order of the Bahamian Supreme Court. With no capital gains tax, inheritance tax, personal income tax, or gift tax, the Bahamas is a top destination for those hoping to save on taxes, especially older, wealthy individuals since the 1990s.

Cayman Islands

Like most of these Caribbean jurisdictions, the Cayman Islands have strict privacy laws used to protect account holders.

The islands offer one of the most attractive tax systems for both individuals and corporations. Here, corporations can be formed and retain assets without paying taxes. When this is done for business purposes, it is entirely legal.

Offshore companies in the Cayman Islands pay a licensing fee directly to the government every year rather than pay taxes. The amount of authorized share capital the company has is used to calculate this fee.

Nevis

Both individuals and companies are choosing Nevis as the destination for their offshore company because it offers privacy, proper asset protection, lawsuit protection, and more.

The government is wholly committed to the privacy and protection of those who are legally using their banking system for business practices.

An offshore company in Nevis offers favorable taxation on the income generated from anywhere in the world, with a lack of income, estate, inheritance, and capital gains taxes. For an LLC in Nevis, you will only need a single director and officers are discretionary. Share certificates are optional, which means the share register is the primary record for shareholders.

Belize

Belize is a stable country that offers excellent banking for individuals, especially those living in the United States, due to the proximity of the countries. Even if one doesn’t live in the US, international account holders can take advantage of bank cards, accounts, CDs, securities, loans, mortgages, and the protection of precious metals.

Another benefit for account holders in Belize is that international accounts are not subject to local taxes or exchange control restrictions. Privacy is another leading factor in choosing banking in Belize, as well as the fact that international banks in Belize only allow international clients.

If the Caribbean is not what you are looking for, read about well-known low-cost jurisdictions in Europe.

If you are ready to begin your offshore investment journey, or if you need a push in the right direction, contact the team of Alpen Partners today!