An offshore jurisdiction is not just a country with favourable tax conditions. It is a territory with a regulatory regime useful for business, financial and personal purposes. In 2020, the emphasis on the use of offshore jurisdiction has shifted from business to personal matters.
Acquisition of a second legal passport
In 2020, wealthy citizens of developing countries became more interested in acquiring second citizenship in offshore jurisdiction than in business optimization. Citizenship is achieved through investment programs and in some cases – acquisition of real estate in the target country.
For example, for a Russian or Ukrainian business person, such a purchase provides more significant security guarantees, creates tax advantages and allows visa-free entry to many countries of the world. The COVID-19 pandemic event has stimulated the demand for passports from countries with special tax conditions.
Creation of foreign funds
Wealthy people often want to avoid a conflicting division of capital between heirs, for example, among children from different marriages. For this purpose, you can place money in private funds in other countries, with favourable regulatory climate. These funds are independent of the laws of emerging economies such as Russia, Ukraine or Kazakhstan. The funds invested in the fund cease to be considered as personal assets and become part of the fund. Heirs or creditors will not be able to obtain rights to these assets by court order, since the founder does not have ownership, and the courts of the foundation’s jurisdiction do not support the recovery of assets from such funds.
Both ways of using offshore jurisdiction have the purpose of increasing personal safety and capital safeguarding. In the event of intractable problems in the country of origin, the entrepreneur can move to an offshore jurisdiction as its citizen and retain his assets.
Oracle Capital Group offers the most relevant jurisdictions for your business, helps the client open a bank account, and also provides full accounting and audit services for your new company or fund. Among the popular offers in 2020 are companies and funds in the Bahamas, Jersey, Seychelles and the British Virgin Islands.