EU asset protection

adriatique

New Member
Hi everyone,

I have a company in the EU which is currently owned by me personally and I'm looking for the most cost effective way to protect my ownership from creditors, lawsuits, etc. The country in question has civil law.

Based on the data I've seen, most people in my country use a Panama foundation or a Liechtenstein trust (although I've seen a foundation being used as well).

I've also heard that a Cook Islands trust is absolutely the best and most secure asset protection solution in existence.

Please let me know your thoughts on this. Thanks in advance.
 

Martin Everson

HNWI Offshore Consultant
Business Angel
Mentor Group
I have a company in the EU which is currently owned by me personally and I'm looking for the most cost effective way to protect my ownership from creditors, lawsuits, etc. The country in question has civil law.
Who will be facing creditors/lawsuits you or the company?
 

adriatique

New Member
What is the activity of the company?
enterprise software development & real estate holding. I assume it would be in my best interest to split this into two limited companies.

I want to avoid the following:
1) someone suing my company and getting ahold of my real estate which is on the company books at the moment
2) #metoo bullshit (living with someone for 3 years or more counts as marriage)
3) someone suing me personally and confiscating my company shares
 

Martin Everson

HNWI Offshore Consultant
Business Angel
Mentor Group
What do you guys define as "substance" in 2020? just for all the guys around here who don't know what you mean :D
Basically no letter box company.

In Netherlands for example for a company to be considered tax resident it would need to meet at least the following. You can't just setup a Netherlands company while living in i.e France and call the company a Dutch company for tax purposes if it does not meet the following at the very least. The company without the following would be tax resident in France and they will inform the other tax authority of this...lol.

  • At least 50% of the members of the board of directors, with a right to make decisions, live or factually reside in the Netherlands;
  • The directors residing in the Netherlands have sufficient knowledge to perform their activities in their capacity as a director of the Dutch company. The company has the adequate personnel (either of its own or from third parties) for the adequate execution and registration of the transactions;
  • The (most important) board decisions are made in the Netherlands;
  • The (main) bank account of the Dutch company is in the Netherlands;
  • The bookkeeping of the Dutch company takes place in the Netherlands;
  • The Dutch company has (at least up to and including the moment of filing the APA/ATR complied with all its tax obligations;
  • The Dutch company has its registered address in the Netherlands, while the company is, according to its best knowledge, not (also) a resident of another jurisdiction for tax purposes;
  • The Dutch company’s minimum equity is adequate in relation to the functions performed (taking into account the risks assumed and assets used).
 

mange38

Trusted Member
Business Angel
Well those rules don't seem so harsh, especially if the BV is just used as a holding. It's not like you will have employees in the Netherlands
 

Gediminas

Offshore Tax Advisory
Business Angel
Mentor Group
Commercial Service
Hi,

Jurisdiction is important however even more important is how asset holding/protection vehicle is structured. In any case asset protection (from potential creditors) works only you don’t have any claim at the moment you contribute assets to the structure. Otherwise, in most countries such transactions would be considered as artificial (actio Pauliana claim).

In my opinion, a properly structured irrevocable discretionary foundation in Liechtenstein is the best asset protection vehicle, but it depends on many factors. Also, unit-linked life insurance solutions in Switzerland are extremely solid asset protection vehicle (if you are not US citizen since they try to avoid working with US citizens).
 

hernanday

Building Trust
Entrepreneur
Hi everyone,

I have a company in the EU which is currently owned by me personally and I'm looking for the most cost effective way to protect my ownership from creditors, lawsuits, etc. The country in question has civil law.

Based on the data I've seen, most people in my country use a Panama foundation or a Liechtenstein trust (although I've seen a foundation being used as well).

I've also heard that a Cook Islands trust is absolutely the best and most secure asset protection solution in existence.

Please let me know your thoughts on this. Thanks in advance.
Avoid Liechtenstein, it is a grossly corrupt jurisdiction probably the worse one, run by a dictatorship and the courts have defended trustees who stole from the beneficiaries of a billionaire and locked them out of their own money, your assets are not safe there.
 
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