Frequently Asked Questions (FAQ)
In order to help you, the visitor, find your answers quickly, we provide a list of Frequently Asked Questions. Here you can find quick answers about what we do, and other common questions.
Isn't moving assets offshore illegal?
Why should I move offshore?
What is Asset Protection?
If I must declare my offshore assets, how can I use an offshore plan to legitimately reduce my taxes?
A friend said that offshore asset protection is immoral, what are your views on that?
If I open an offshore structure, will this lead to tax authority scrutiny?
What is the difference between an IBC, Foundation or Trust?
Can I use my entity to hold ownership of real estate property in my home country?
What are the requirements for filing tax returns, keeping books, etc.?
Are there annual renewal fees for my offshore entity?
What are Nominee Directors Services?
What is your Offshore Fiduciary Structure (IFS)?
Who can benefit from offshore planning?
When is the best time to move offshore?
Why do I need an offshore financial strategy?
Where should I take my offshore investments?
How do I put my money into an offshore asset protection plan?
Once an offshore structure is created, who manages my business?
Is it necessary that I travel to the country where my offshore entity is located?
If I should die, what would happen to my offshore assets and business?
Aren’t offshore financial services just for the very wealthy?
Does having offshore structures reduce my taxes?
Which is the best offshore center to use for asset protection and/or estate planning?
Can I retain control over my money, possibly through investment or bank accounts in my home jurisdiction?
How much does an asset protection structure cost?
What is the minimum amount I should start with?
Are there any other advantages to going offshore?
How do I start?
Isn't moving assets offshore illegal?
There is nothing illegal about moving assets offshore. It is when you move the assets into accounts offshore and do not declare their existence to the tax authorities that you break the law. Any assets over which you have control, domestic or offshore, are probably liable to taxes in your home jurisdiction.
Why should I move offshore?
Moving some of your assets offshore provides you access to modern (and ancient) methods of protecting your assets and reducing your taxes using trusts, international corporations, foundations and other legal entities.
What is Asset Protection?
Asset Protection is a term used to describe the concept of legally transferring your assets into a legal entity which will protect them from attack by frivolous litigation, seizing from government, attack from an estranged spouse - in fact anything which may threaten your hard earned wealth.
If I must declare my offshore assets, how can I use an offshore plan to legitimately reduce my taxes?
Taxes must be paid on profits made on assets under your legal ownership. By the use of certain offshore entities, which vary according to your home jurisdiction, a certain proportion of your assets will no longer bear taxes at the same rate. Please contact us for a plan based on where you reside.
A friend said that offshore asset protection is immoral, what are your views on that?
Some people are quite happy to stay in a system which allows vultures to pray on exposed assets. That is their individual choice. There are other people who prefer to leave the country they love to get away from the system. Offshore asset protection is somewhere in between. There is nothing immoral in trying to protect your hard-earned assets so that you and/or your family can benefit from them later on. It is the essence of rational self-interest.
If I open an offshore structure, will this lead to tax authority scrutiny?
What we advocate is not illegal; it therefore does not attract undue attention from the authorities. It is activities like money laundering, tax evasion and controlled accounts that the tax authorities are interested in, not law-abiding citizens protecting their assets and lowering their tax burdens.
What is the difference between an IBC, Foundation or Trust?
Companies/Corporations are used for profit-making ventures involving business activities such as banking, international trade, securities trading, ownership of assets, etc. Foundations are generally used for non-profit activities such as charities, receiving or giving donations, grants, etc., but can also be used for holding purposes such as holding ownership of Companies/Corporations or any other types of asset. Foundations may hold ownership of corporations for additional confidentiality and asset protection. Trusts are generally used for holding purposes such as owning Companies/Corporations, or holding assets such as real estate.
Can I use my entity to hold ownership of real estate property in my home country?
That depends on the country where you are located and the laws of that country. We do not recommend that US citizens use offshore entities to hold or own real estate due to the extensive reporting requirements. It is generally better for US citizens to have a Delaware or Nevada Corporation or LLC own their real estate and then have their offshore entities own the domestic Corporation.
What are the requirements for filing tax returns, keeping books, etc.?
Generally, offshore jurisdictions have minimal reporting requirements. Often there are no financial records required at all, but these requirements vary from jurisdiction to jurisdiction. We can advise you and recommend specific venues according to your needs; however, you should obtain professional guidance from your domestic attorney or accountant regarding your income tax reporting requirements for your home country.
Are there annual renewal fees for my offshore entity?
Yes. Normally, each jurisdiction has governmental renewal fees, which must be paid annually. These fees are in addition to any resident agent fees, nominee officers, directors or shareholder fees paid to The Finor Group. We will notify you in advance of your annual renewal date with the exact amount due, and we will forward the fees to the appropriate parties once received.
What are Nominee Directors Services?
They are The Finor Group's directors that are appointed for you to maintain your anonymity and privacy, so your name does not appear on the corporate paperwork.
What is your Offshore Fiduciary Structure (IFS)?
The IFS is a complete investment and business scenario that is designed to improve privacy, protection, flexibility and superior performance for your financial affairs. For an ever-increasing number of individuals and corporate bodies, an offshore fiduciary structure (IFS) is essential to building, managing and preserving wealth. It involves the relocation of personal or corporate wealth outside one’s country.
Who can benefit from offshore planning?
There are many individuals and businesses that can and do benefit from offshore planning. Those who should investigate the benefits of offshore financial planning include:
i.Professionals that are subjected to a high degree of legal liability in the course of their
profession (lawyers, doctors, dentists and accountants);
ii.Those individuals and businesses that manufacture consumer products, build commercial buildings/homes and those contractors who create our infrastructure such as roads and other public and private facilities;
iii.Individuals planning marriage who seek to protect their assets prior to their marriage;
iv.Those seeking offshore investments as an alternative investment vehicle.
When is the best time to move offshore?
While the ideal time to set up your offshore entities is before you acquire wealth, it may not always be possible or even known that you will need such a plan. Moving assets offshore, after you are aware of potential claims against these assets or just prior to bankruptcy, will not, in all probability, protect those assets. Those individuals that move their assets prior to attack have the best chance of preventing the seizure of their property and wealth. Today is a better time to go offshore than tomorrow.
Why do I need an offshore financial strategy?
While there are many reasons for offshore strategies, some of the more common reasons for going offshore include:
i.Protection from lawsuits, creditors and disputes arising from marital problems;
ii.To provide asset protection;
iii.To take advantage of offshore investment options;
iv.To increase your financial privacy;
v.To facilitate the transfer of wealth for estate purposes.
Where should I take my offshore investments?
There are currently over 65 tax friendly venues available worldwide. Each of these jurisdictions offers advantages and disadvantages depending on your needs. Careful planning and consideration is essential to determine where to place your offshore investments. Factors to be considered include:
- Taxation rules and rates;
- IBC, trust and foundation (as appropriate) statues in the proposed jurisdiction;
- Political and economic stability;
- Extant secrecy and privacy statues;
- Property rights;
- Infrastructure of proposed jurisdiction;
- Proximity of venue should you wish to visit.
- The advice of a professional offshore financial advisor is strongly recommended!
How do I put my money into an offshore asset protection plan?
We can assist you in opening offshore banking and investment accounts with major financial institutions. Once these accounts are established, it is possible to transfer monies directly to the bank or brokerage firm at your discretion.
Once an offshore structure is created, who manages my business?
In the case of an offshore company, trust or foundation, The Finor Group will assign professional support where necessary so as to comply with the regulations of both the investor’s country and the host county where the entity is established. Our clients are normally designated as representative attorneys and they are empowered to "manage" the day-to-day affairs of the offshore structure.
Is it necessary that I travel to the country where my offshore entity is located?
You do not have to live in or visit the offshore venue where your entities are located. Your business is transacted through The Finor Organization’s secure electronic messaging systems.
If I should die, what would happen to my offshore assets and business?
For assets held in a Foundation, they would become the property of the beneficiaries, similar to a living will. In an offshore venue, probate fees are normally non-existent, inheritance taxes can be minimized and perpetuity rules generally do not apply. If you do not have a Foundation but have your assets in an IBC, those assets would be transferred through the provisions of a Last Will and Testament. This is a strong argument for the combination of a Foundation and an IBC, where the Foundation owns the IBC. Without the Foundation, your privacy may be compromised by the disclosure of offshore assets in your will.
Aren’t offshore financial services just for the very wealthy?
No, offshore financial services can provide asset protection for individuals of all income levels with private, secure structures that discourage or prevent asset attack.
Does having offshore structures reduce my taxes?
It depends on the tax regulations of your citizenship. Residents of France and the United States of America, for example, must report income regardless of where earned. Citizens of other countries may not have similar reporting requirements and may realize significant tax savings. You should check with your financial advisor/accountant to determine what savings, if any, can be realized by placing assets offshore or by earning income outside of your home country.
Which is the best offshore center to use for asset protection and/or estate planning?
Most modern tax havens are very alike with respect to their tax laws and services, although some do offer entities not available in others. Certain tax havens have developed bad reputations over the years due to abuse by certain elements of the offshore industry, but most are quite safe. As with any financial plan, it is usually best to use a mix of jurisdictions, picking the best from three or four areas.
Can I retain control over my money, possibly through investment or bank accounts in my home jurisdiction?
Many people would like the 'safety' of an offshore asset protection structure but would like to keep complete control over the assets, trading accounts etc. This is possible but gives a direct link to the assets and will probably lead to any legal structures that were set up being ignored for both tax and protection purposes. Offshore asset protection does require you find people you trust to advise you and take care of finances for you.
How much does an asset protection structure cost?
At The Finor Group we believe in providing value for money for our clients. Furthermore, when providing our services, our focus is on building the quality and value of relationships with our clients over an extended period of time. Complete asset protection structures start as low as US$5,000 for an average family, with annual costs as low as US$2,000. Of course this cost rises with the complexity involved, but rarely exceeds US$15,000 initial costs.
What is the minimum amount I should start with?
That depends on your reasons for going offshore. If it is for asset protection you should be considering how much you are risking by not going offshore, namely lawyers fees, time, loss of assets etc. If it is for tax reasons you should be looking at the annual costs against how much tax you can save (i.e. US$18,000 is 30% of US$60,000.)
Are there any other advantages to going offshore?
Once a structure has been legally created it can be used for international trade and investment. This opens up a whole new arena that the average unstructured citizen cannot usually access.
How do I start?
The best place to start is to contact us and to fill out our feedback form.
