Transaction Structuring

Hard earned perspective on positioning vis-a-vis taxes and asset protection

Across the internet you will find, or may already have found claims of how international investment in real estate can be structured in a way that gives you benefits that include zero tax at home and almost complete asset protection. Several years ago, we investigated these claims and the structures underlying them.

During our investigation, we discovered these strategies depend almost entirely upon the “secrecy” (as opposed to privacy) a foreign jurisdiction provides an investor from the home nations courts and taxing authorities.

Aside from ethical concerns with these strategies, there are increasing practical realities. Home taxing nations have made it their highest priority to pierce the privacy of tax havens and begin imposing sanctions and even criminal penalties on those whose offshore investment strategy has been one that includes avoiding all tax at home.

Distinction between tax-avoidance strategies and asset protection strategies

Comply from a tax standpoint; plan from an asset protection standpoint

Home nations give their taxing authorities tremendous power. This power lets them completely ignore and look through structures and arrangements that separate a beneficial owner from the income generated by investments related to that individual for tax purposes.

However, home nations have commonly not been involved in ignoring foreign structures that assist an individual in protecting their assets from civil suits and other civil seizures.

We believe that in the current environment, adopting an offshore investment strategy that includes techniques and structures to completely avoid at-home tax risks personal disaster. However, we believe that asset protection and tax minimization strategies remain strong options for the offshore investor.

Therefore, we have aligned ourselves with professionals in offshore nations and in the USA that take a conservative position on tax and yet are open to facilitating asset protection with the assistance of offshore entities.

We are happy to share our perspectives and findings on this topic with you.