Jurisdictions most suitable for asset protection (from both govs and creditors)

CALL US ON +971 50 4467827 - TO SETUP YOUR NON-CRS COMPANY STRUCTURE IN DUBAI.
Bank Accounts, Company Formations, Tax Planning, Residency Solutions, and more

newNomad

Active Member
Dear folks,
was wondering what are the best jurisdictions or structures to move away to or relocate the assets to and avoid any seizures/confiscations/creditor attacks/etc

For example, a person from high tax country who runs a business is found or is to be found with tax irregularities which if fined will bankrupt the business. On top of that there might be creditors involved
So where to move all the liquid assets? (I assume all non-liquid assets in the home jurisdiction are to be liquidated in a fire sale since exposed to seizure, and thus concentrate only on liquid assets)
I.e. jurisdictions which when you move there don't give a f* about what you did somewhere else and maybe only prosecute misdemeanor in their own jurisdiction; or however jurisdictions that do cooperate internationally but only in big ticket disputes (organized crime worth many millions, terrorism...)
I guess some African countries are all like that, but is there anything more reputable and where you can be deemed 'unreachable'? Does it depend also on nationality?

For simple loan-repayment avoidance this mostly works as a charm for small to medium unsecured loans since once you move away the recovery agencies rarely go after you abroad. Not sure abt govs?
 

Sols

Staff member
Mentor Group Gold
Depends on scope. What assets are you protecting and from whom? Under what circumstances?

Asset protection structures often use multiple jurisdictions to complicate matters for hostile actors.

For example, USA, Cook Islands, Nevis, and Samoa can provide all or part of a structure.

One of the most important and also most overlooked aspects of asset protection is timing. You need to plan it out well in advance or the structure can be shattered on the basis that it was not set up in good faith.

Asset protection structures aren't guarantees of a life lived in peace. Just because you hid your fortune in a South Dakotan trust doesn't mean your local government can't (try to) make your life miserable in other ways (for a time).
 

newNomad

Active Member
Depends on scope. What assets are you protecting and from whom? Under what circumstances?

Asset protection structures aren't guarantees of a life lived in peace. Just because you hid your fortune in a South Dakotan trust doesn't mean your local government can't (try to) make your life miserable in other ways (for a time).

Assets defined as liq assets ($ on account) + some real estate (which always can be liquidated at least before it's in some way seized by the gov but in that time one is already in a deeeeep trouble)
Typical circumstance is you have a business and revenues, you are either not fully compliant with tax returns or perhaps even declaring but not paying
Usually the administrations do not chase you until you are in a deep hole for past due taxes, intrests, social contributions, various local stamp duties, whatever. In addition you might have taken bank loans for the business so you have X in assets but XXX in booming liabilities you are not servicing.
The question is where to move, physically perhaps also, together with the account and not be disturbed. I.e. open a private bank account in Dubai, transfer everythin to that account, board the first plane and not respond or be reachable for anything/notices/tax administration orders etc.
Where can one be undisturbed? I don't even know if someone can be extradicted just on basis of tax debts or unsecured loan obbligations but yeah the new jurisdiction should not extradict nor seize the assets brought into it on basis that is simply out of their scope to serve orders which do not come from their jurisdical system and that any affair which happened outside that particular jurisdiction is irrelevant and cannot be prosecuted in the 'new' jurisdiction.

Trusts/foundations you are referring to perhaps serve well if structured properly and on time, but mostly against private creditors, not sure if they hold against claims made by the gov/tax office
I guess many people use crypto as a dirty solution, just wire everything around, buy cryptos from all posible OTC desks and stash it somewhere that it cannot be found, but wondering is there anything else..?

The country where I lived at some point had a public list (available online) of the biggest tax defaulters in the country...there were like public figures on it, people owing like 20,50 even 100 million $ and actually walking or driving in a Porsh undisturbed around and everyone knew them
They even had companies and holdings to their names and fully operational, did day to day business....how do they pull it off? In a way to owe ton of taxes and just never have to pay up
 
Last edited:

marioIT

Active Member
not a lawyer,
UAE - they signed treaties a few years ago but not really extraditing anyone for tax matters as far I know. But double check with your country.
I know plenty of people running away from Eu governments "hidden" there, either fraud or worse...
I said "hidden" cause everyone sees them driving their Ferraris or Lambos, it's not like they have to hide smi(&%
you can find every species there: from human traffickers to mafia mobsters, from drug cartels to tax evaders, scammers etc. They're all there living the good life :)
 

newNomad

Active Member
not a lawyer,
UAE - they signed treaties a few years ago but not really extraditing anyone for tax matters as far I know. But double check with your country.
I know plenty of people running away from Eu governments "hidden" there, either fraud or worse...
I said "hidden" cause everyone sees them driving their Ferraris or Lambos, it's not like they have to hide smi(&%
you can find every species there: from human traffickers to mafia mobsters, from drug cartels to tax evaders, scammers etc. They're all there living the good life :)
As I thought Emiratis are hard on those who do any petty crime in their country but seem quite liberal to escapers from other countries...But maybe someone knows more
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
was wondering what are the best jurisdictions or structures to move away to or relocate the assets to and avoid any seizures/confiscations/creditor attacks/etc

North Korea. They have a food shortage at moment however so bring your own.
 

azb1

Entrepreneur
Any country will be perfect , Only condition apply is that You have money to bribe and You know how to play with law.
In any country you find story how street smart people play with law and roaming freely in country even after committing crime.
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
Ok and what about the 2nd and 3rd best?
In this hypothetical scenario we're talking about extremely moderate NAV, 7 figures at best. And the money is 100% licit (clean SOW).

A lot of jurisdictions I would have recommended are now boot licking countries of EU or US. It's amazing how things have changed so quickly.

In terms of assets I would hold them within a offshore trust. A trust held up well with this Russian at least for his yacht :p.


P.S Even Peter Schiff has his Connecticut mansion in Cook Island trust ;)
 
Last edited:

uplana

Corporate Services
Mentor Group Gold
But Cook Islands is not easy to bank with as we have read a million times on this forum already, so how would you do it?

What about the car, property etc. you want to pay, say in France, Germany, Sweden - will they accept that it's a Cook Islands company that buy all this?
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
But Cook Islands is not easy to bank with as we have read a million times on this forum already, so how would you do it?

I have no experience with Cook Islands and it does not appeal to me personally.

What about the car, property etc. you want to pay, say in France, Germany, Sweden - will they accept that it's a Cook Islands company that buy all this?

If you are worried about confiscation then don't hold any assets anywhere in EU even in name of an offshore trust. Move your assets and yourself well outside their influence.
 

GPT

Active Member
Every structure needs to be reevaluated every 5 years. Every 10 years a structure changes.

I would hold real estate / cars etc in a company. The shares of that company can be held by an offshore trust or foundation. This doesn’t have to be the most protective structure as it only creates an extra layer as to avoid the authorities to doubt how things work. Make sure to have proper (rental) agreements in place and you should be ok.

your assets you hold in a different structure from which you only have an invoice relationship with the real estate / cars structure.

the above has worked in a dozen of situations in western countries that I am aware of.

keep in mind that it is a simplified example. Reality depends on personal needs and wants.
 

newNomad

Active Member
Every structure needs to be reevaluated every 5 years. Every 10 years a structure changes.

I would hold real estate / cars etc in a company. The shares of that company can be held by an offshore trust or foundation. This doesn’t have to be the most protective structure as it only creates an extra layer as to avoid the authorities to doubt how things work. Make sure to have proper (rental) agreements in place and you should be ok.

your assets you hold in a different structure from which you only have an invoice relationship with the real estate / cars structure.

the above has worked in a dozen of situations in western countries that I am aware of.

keep in mind that it is a simplified example. Reality depends on personal needs and wants.
Ok but does it work agains confiscatio? I.e. the company assets cannot be clawed even if it is demonstrated that I put in place a trust somewhere to hold the shares of that company which was created only for a "holding" purpose?
Also more details are needed regarding the trust...can I be the settlor and UBO at the same time? Do I need professional trustee or could be a relative? Etc...
Trust needs be irrevocable? Which purpose whould be cited?
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
Ok but does it work agains confiscatio? I.e. the company assets cannot be clawed even if it is demonstrated that I put in place a trust somewhere to hold the shares of that company which was created only for a "holding" purpose?

Depends on the jurisdiction of the trust. Some will render the trust invalid if it was later found to have been setup during i.e litigation, on-going investigation or during a divorce. This was case in Jersey last time I checked years ago with my trustees.

Also more details are needed regarding the trust...can I be the settlor and UBO at the same time?

Generally you cannot be settlor and beneficiary in a lot of jurisdictions. Typically if you wanted to do this then you would ask the trustees to form a throw away shell company which will act as settlor and you will act as beneficiary. The assets will have to be settled into the trust in such a way as to avoid any connection. Likewise you can settle into the trust assets in your name and ask trustees to setup and manage a shell company as beneficiary to the trust (very common). Down the line you can invoice the shell company for consulting fees and draw down money that way.

Do I need professional trustee or could be a relative? Etc...

I would ONLY use a professional trustee although it may not be a requirement in some places where a family member can be a trustee.

Trust needs be irrevocable? Which purpose whould be cited?

Yes Trust should be irrevocable to be taken seriously. You want to show you have no control over the trust assets whatsoever. Purpose cited should be to pass on assets to future generation even if you have no kids. Complex Trusts allows for a class of beneficiaries to be defined i.e "future children of Mr XYZ".
 

GPT

Active Member
Ok but does it work agains confiscatio? I.e. the company assets cannot be clawed even if it is demonstrated that I put in place a trust somewhere to hold the shares of that company which was created only for a "holding" purpose?
Also more details are needed regarding the trust...can I be the settlor and UBO at the same time? Do I need professional trustee or could be a relative? Etc...
Trust needs be irrevocable? Which purpose whould be cited?
Depends on the jurisdiction. Several Caribbean countries have provisions where it would work against "confiscatio".
 

qqq

New member
Very interesting topic, if I hold assets in my name (so no trust or foundation at the moment, even if I'm looking to set it up in the next years), and I am a citizen of a European country (like Italy, Germany or France) but resident in the UAE and with all assets outside the EU, asset are in Russia and UAE (real estate, bank account and shares of the company), in the case of old fiscal crimes in europe is it possible to confiscate the assets I hold today in the emirates? What are the nations that do not extradite for tax offenses?
 

newNomad

Active Member
Very interesting topic, if I hold assets in my name (so no trust or foundation at the moment, even if I'm looking to set it up in the next years), and I am a citizen of a European country (like Italy, Germany or France) but resident in the UAE and with all assets outside the EU, asset are in Russia and UAE (real estate, bank account and shares of the company), in the case of old fiscal crimes in europe is it possible to confiscate the assets I hold today in the emirates? What are the nations that do not extradite for tax offenses?
I guess depends of how old is an "old" fiscal crimes....but yeah interesting about "extradiction of tax offenders"
 

Milky Moon

Offshore Research & Development.
Entrepreneur
I guess depends of how old is an "old" fiscal crimes....but yeah interesting about "extradiction of tax offenders"

Several things to consider:

1) "possesion is 9/10ths of the law"; ie if you have assets and those are owned by a trust, these assets can (and will) be seized, you will have to show the UBO of those assets before they are released.

2) Switzerland does not allow for seizing of assets before a verdict. (so you will have time to 'move' those assets, if you lose you have an additional problem, but this buys you time and sometimes 'others' just want to tie you up in red-tape)

So plan carefully and hire the experts. If you have no budget for cunsultants, you do not have a problem that needs solving :cool:
 

qqq

New member
I have the budget, problem is find someone that is trustable.

Over the years I have learned that one consultant cannot be trusted, but it is necessary to expose what a consultant proposes to another consultant to hear a double opinion on the same problem and the same proposed solution. The real problem is that generally everyone has their own structures to sell to you, they don't care about protecting you and spending 50k€ for a non-ad-hoc structure it's definitely something I would like to avoid.
 
  • Like
Reactions: 369

GPT

Active Member
I have the budget, problem is find someone that is trustable.

Over the years I have learned that one consultant cannot be trusted, but it is necessary to expose what a consultant proposes to another consultant to hear a double opinion on the same problem and the same proposed solution. The real problem is that generally everyone has their own structures to sell to you, they don't care about protecting you and spending 50k€ for a non-ad-hoc structure it's definitely something I would like to avoid.
And that is the biggest “problem” of the industry and why I personally changed my approach to having a team around you that assists in setting up a structure.

A team consists at minimum out of fiscal accountants from the jurisdictions involved.

Plus, most important, always, always, always have three proposals or plans. If two are mostly in the same direction then that is likely to be a workable solution. Hi at never bet on “one horse”.

Most providers use “their” one hit wonder which in reality can be a good solution if you fit in their criteria. If however something is not fitting for you then such an approach might not work and even cost more in the long run.

Also, if you can’t afford the consulting, consider seriously on whether offshoring is for you. And if you are truly a HNWI then you also know that consulting fees are not even charged. These fees became unfortunately mainstream because of too many wannabe’s.
 
Top