Top 10 promising offshore zones: saving on taxes in the era of deoffshorization

Let's be frank and say: they wanted to offshore mainly for two reasons. The first is to protect assets, be it property or personal information. It is still possible to protect assets, but administrative and criminal consequences may ensue for hiding information.



The second reason is low or zero taxes. To relieve business of at least part of the burden and breathe freely is the dream of many entrepreneurs. Unfortunately, most countries are on the way to tightening tax laws. Plus, offshore companies that offer tax exemptions are under pressure.







Worst of all, it has become difficult for offshore companies to open bank accounts. Given their distant location from both owners and clients, this is a serious problem. After all, no money - no business.



Despite the general trend, we have selected a dozen countries that can be used today and in the near future.



The list includes those that meet the criteria:

• Good reputation;
• Low taxes (except that one country does not fit in - Portugal, but it is strong in another);
• The ability to open an account (just about Portugal: here it is not only possible to open an account, but it is also easier to keep it than in other countries);
• There are additional benefits and opportunities, such as obtaining a residence permit, licenses and asset protection.

The list is conventionally divided into three groups: classic offshore (Nevis, Marshalls), midshore (Panama, Gibraltar) and onshore (all others).



From a practical point of view for an entrepreneur, there will be a noticeable difference between classic offshore companies and others. And this is only because, despite a good reputation, it will take some preparation before opening a bank account for these companies.

1. Nevis

An island nation in the Caribbean. A classic offshore company with a developed infrastructure, flexible legislation and local banks. Which makes him a member of the list.

2. Marshall Islands

The Pacific Ocean, a tiny state, a large maritime register and a classic offshore. An excellent reputation and flexible legislation make the Marshall Islands one of the most attractive offshore companies of the present.

3. Panama

Maybe someone remembers about the scandal with the Panama dossier, but since then the most important thing has not changed: Panama has remained a profitable place for registering a company, a reliable developed economy. This is not a small offshore, but a country with the Panama Canal, financial industry, industrial zones.

Everything else is territorial taxation: all income received outside the country is taxed at a rate of 0%.

4. Gibraltar

A rocky peninsula bordering Spain but part of the UK. Gibraltar has broad powers, including tax matters. Therefore, there is an opportunity here to open non-resident companies and not pay income tax

5. Hungary

Hungary attracts attention with its low tax rate, its participation in the EU, the ability to open an account in the country. Every year foreign investors are increasingly using Hungary in their structures.

6. Estonia

If you are about IT and plan to save a little, then Estonia is your partner. Suitable place for startups. The only drawback is the difficulty in opening an account for a business focused on working with foreign clients, but it can be solved by accounts in banks and payment systems outside Estonia.

7. Serbia

Serbia is not part of the EU, but is a gateway to Europe. Serbia is used as a springboard and a transit point by entrepreneurs from China, Russia, the United States, and the EU itself. Thanks to the low electricity costs, it is profitable to open even factories here. And in Special Economic Zones (SEZ) they are exempted from VAT, customs duties and offer other benefits.

In addition, Serbia is a tool for entering the classic offshore company into the European market and for opening local accounts.

8.

The most unobvious member of the list: taxes are high, opening an account on the spot can be difficult. What is the offshore benefit? First, the reputation of Old Europe. Secondly, reliability. The problem for many companies is not only to open an account, but also to keep it.

In Portugal, an account can be opened for both local and foreign companies (under certain conditions). And once you've opened an account, it's easier to keep it running than in many other parts of the world.

9. Canada

Calling Canada a low-tax country is hard to beat. But it can be an offshore, if you use the features of corporate legislation. In particular, open a partnership in Canada and make a profit outside the country. Partnerships do not pay corporate tax and distributed profits are taxed at the rates of the country in which you are resident.

For example, if you live in Russia, then after the distribution of profits by the partnership, you will pay 13% income tax. And if you are a resident of a tax-free zone, then nothing.

10. USA

The United States is by far the largest offshore company in the world. They offer zero (or close to zero) tax under certain conditions; lack of automatic exchange of banking information; generally attractive conditions for foreign investors.

Not surprisingly, thousands of foreign-led companies storm the American Olympus every year.



You can tell about each country additionally. If interested - write in the comments, we will figure it out.