There is a lot of information noise around offshores, and we often fall victim to myths and look at them through black-and-white glasses. However, an offshore company is first of all an instrument that serves the purpose and has its peculiarities and limitations, and this is the way we propose to look at it in this post. We are a group of experts working with offshores for over 20 years, so we know all the ins and outs.
According to popular mass media beliefs, the main reason why entrepreneurs opt for offshore jurisdictions is zero or low tax rates. However, this information is outdated as it comes from the times when offshores were mainly associated with aggressive tax optimization schemes. Those times are gone, and people choose offshores to take advantage of a secure judicial system for business, as well as privacy and asset protection that they often cannot find elsewhere – and low taxes come as a bonus. If one of these is your priority, read a longer article on the best offshore tax havens on our portal and ask any questions you have, and our experts will be glad to answer them.
Geography of offshores
We traditionally think that an offshore jurisdiction is a beautiful island with palm-fringed beaches lost somewhere in the ocean. In reality, only some of them fit this description, and you will find many other countries on the current list of best offshore jurisdictions that don’t (and some of them would be a surprise, like the US or UK). In fact, there are more than 100 offshore zones (if we take into account those that provide tax incentives) and 40 classical tax-free offshore destinations.
Here are the main offshore zones:
- Traditional ones: no tax on most business operations, and a possibility to form trusts and foundations that ensure privacy and reliable asset protection.
- European ones: special territories in European states where you can pay zero taxes if you fulfill certain conditions.
- Asian ones: China, Hong Kong, and Singapore.
- Other states offering offshore zones: US, Canada, New Zealand.
- Conditional offshore zones: Georgia, Turkey, and the United Arab Emirates.
A wide choice may be good news or bad news: it’s great to have a choice, but you may be unsure how to select the destination that will help you reach your goals rather than bring problems. We know this meal of choice, and this is the reason why our team has developed free offers to help you select the right jurisdiction for your company and bank account opening. You can see a full list of our offshore services on our portal.
Remember: choosing a jurisdiction is like choosing a car. You cannot reasonably expect a sports car to be a good vehicle for rough terrain, so be sure to match the road to the model.
Let’s take a look at the most popular areas in which opening an offshore company may bring substantial benefits in 2023:
- Asset protection. Diversification is one of the pillars of proper asset protection, so transferring a part of your assets abroad (to a reliable place, of course) will automatically mean better protection. Our top four list includes Nevis, Belize, Cook Islands, and Marshall Islands.
- Offshore banking services. Switzerland still takes the first place, and you can benefit a lot from Swiss banking provided that they agree to onboard you as their bankers tend to become over-meticulous. And if you need a robust center that focuses on US dollars, Panama is the answer (even Panama Papers failed to tarnish its reputation). Need a crypto account? Take a close look at the Bahamas. Remember that our experts can help you become a bank customer without much hassle even if the bank is picky about customers.
- IT and software development. If you are going to engage in this sphere, the top list is Serbia, Turkey, or Singapore.
- Offshore real estate. One way to save your money from inflation is to invest in real estate, and here we can recommend the UK, Ireland, Portugal, Spain, Italy, Cyprus, and France.
- Cryptocurrency and trading. The best crypto-friendly jurisdictions include Nevis, Antigua, the UAE, Switzerland, and Serbia.
Keep in mind that these are general recommendations, and you can address our experts to get a customized solution for your situation.
What are the best offshore destinations to form a company in 2023?
And there is no precise answer to that question as we will ask you “best for what?” in reply.
Just to give you an idea:
- Marshall Islands is a great choice if you need to quickly establish a company, and there are always ready-to-use companies available that you can buy.
- If you need a jurisdiction that will impose no taxes on your global income, opt for Antigua.
- You can have a really powerful duo in Nevis: an offshore trust for asset protection (trusts in Nevis are really the best!) and an LLC for business operations.
- If you need a hub that has a lot of global connections and is a tax haven at the same time, Panama will give you just what you want.
- The BVI is a classic offshore destination that is appreciated due to its reputation, but it has a slight tendency to become over-regulated, though.
If your priorities include freedom from submission of reporting, audits, or being glued to one place to hold meetings, just opt for one of the above jurisdictions and enjoy your business operations.
However, some of you may want to choose a jurisdiction that never stirs up dissatisfaction of global regulating authorities or bank institutions, think of midshores and onshores. These may be more expensive in terms of set-up and maintenance, and you will have to ensure more transparency. On the other hand, you will have substance for your business and lifestyle benefits. Our top list here includes Switzerland, Cyprus, Montenegro, Singapore, Panama, Serbia, and the UK.
You may have quite a number of parameters that a suitable jurisdiction should have, and in this case, we strongly recommend booking our free consultation for those who find it hard to make a proper choice. Follow the link above to schedule a meeting now.
We wish you the best of luck in your undertakings!