If you ask someone what an offshore company is, you will often receive in response that it is a company constituted in a tax haven (so far there), but also that it is a form of company used only by gangsters, traffickers and terrorists, which of course It is immoral and illegal to ride something like that. Even the most aware, will tell you that it is an expensive, complicated and, ultimately, not worth it.
As you can guess, none of these maxims is true, despite how widespread they may be. No wonder, after all, neither the States nor the media will do much to demystify this.
The reality is that neither the States, nor the people who use them to benefit and live at the expense of others, have any right over your money or your assets and, in fact, no matter how hard they try, they cannot even prevent you from Get out of the system, the offshore company is one of the possible paths.
In today’s article you can read what an offshore company is and for whom it may be worthwhile to create such a company. Let’s talk about the reality of tax havens and why taking advantage of them is not illegal, immoral or even complicated.
Clarification: Tax and offshore paradise are used as synonyms; Onshore is the opposite of offshore.
Why you shouldn’t fear to register companies in tax havens
Setting up an offshore company, in any tax haven, does not constitute tax evasion or an act of money laundering. Setting up an offshore company is:
- completely legal
- a practice carried out by most of the big companies you know
- much cheaper than you think
- simpler and faster than you can imagine
- Eaten bread if you have the necessary contacts and knowledge
Moving your business to a tax haven is nothing more than a decision, an intelligent decision in search of a better use of the opportunities offered by the global market (similar to moving your residence ). It is simply the implementation of the maxim “ go where they treat you best ” (which we talked about in the Theory of the flags ).
States do not have the right or the ability to control what you do. In fact, there is a strong competition between them for earning you as a citizen (so you pay taxes there, of course).
“And if you are not convinced by the services or the treatment your State offers you, you leave.”
Of course, the states try to create posters in order to take away your ability to move, this is what leads them to create associations such as the Organization for Economic Cooperation and Development ( OECD ) that promote blacklists of tax havens to put aside countries that offer “too good” conditions for their clients (citizens).
But this does not matter to the States that depend on their income as tax havens and have also understood their function much better:
“Serve its citizens, instead of milking them until they have nothing left to give . “
Reasons to move your business to a tax haven
What reasons lead entrepreneurs to move their businesses to tax havens?
- They want to protect their assets from possible litigation and legal problems.
- They want to protect their company from political and economic instability.
- They want to avoid the useless and expensive obligations imposed by many governments to report on the state of their company’s finances (audits, forms, balances …).
- They want to escape the strong fiscal pressure that endangers their existence.
As you can see, it is not a matter of money laundering or tax evasion, all they want is to increase their capital and save taxes.
Taking advantage of the offshore world is a simple path for the smart entrepreneur who has decided to stop working for others, who wants to protect his shareholders and maximize his profits. It is a 100% legal path that they follow following the rules that their country of origin imposes on them.
Even if you are Spanish, German, Mexican or Chilean, you have nothing to fear as long as you adhere to what the law dictates (in Spain, communicate the existence of the offshore company to the Treasury).
For whom it is worth moving the company to a tax haven
In Libreado we have all kinds of readers. We find executives and students, young and old, people with international experience and people without it … For many of you it makes no sense to set up an offshore company or move the existing one to a tax haven. In fact, you will first have to concentrate on creating a business model that gives money.
To keep your offshore company in the most economical jurisdictions you will have to have at least € 500 per year. Logically, it does not make sense to set up the company in a tax haven until you can save yourself more in taxes than it will cost you to maintain your company (in fact, you should think hard if you constitute any type of company either onshore or offshore until you start to enter enough money).
Beyond these limitations, anyone can register their company in a tax haven, but for some it will be easier and more advisable than for others.