Advantages and Disadvantages of Offshore Structures.
What are the main advantages and disadvantages of offshore structures? This is a questions we often receive on our phone lines and e-mails. Since this is a topic that there is not that much information about we would like to share the main points drawing on or 20 years of experience in the field of tax law.
Let us first cover what the main advantages are:
So far people interesting in migrating to an offshore jurisdiction were interested mainly in two things.
- First was anonymity. If one was interested in protecting the identity of their assets one option would have certainly been this one.
- Taxes are the second reason. Plenty jurisdictions offer almost zero tax to their clients. This is however no longer the case but we will cover this in greater detail later on in the article.
These two factors were the main reason why anyone would consider moving to an offshore jurisdiction.
So what has changed and what are the disadvantages of such a decision?
In our opinion there are much better opportunities currently. Furthermore, following the recent wave of much stricter regulations in the European Union, which have made these obsolete.
Having such a company makes it close to impossible to have a bank account within the European Union. Therefore, you will not be able to move funds freely.
There are however much better opportunities such as Bulgaria.
The country has one of the most advantageous tax jurisdictions in the world. As part of the European Union it has a steadily growing economy and a currency that is pegged in value to the Euro.
Furthermore, the country has a flat corporate tax of 10% and a flat income tax of 10%.
By choosing a reputable partner such as Bulgarian Law you can complete the entire incorporation process remotely. We have a dedicated team of lawyers, barristers, accountants and economist who are always up to date with all legislative changes and ready to assist you in any way.
Contact us. The initial consultation is always free of charge for you.