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Where to set up a tax free offshore company? BVI, Belize, Mauritius Islands, Panama...?

zeeoffshore

New member
Which jurisdiction do you recommend in terms of reputation, cost-effectiveness, process simplicity, banking system...?
 

Sols

Entrepreneur
They all have (more or less) bad reputation and banking is difficult. Belize is cheapest and easiest. BVI second. Then Mauritius.

But it's 2020. Offshore companies are almost always useless, unless you establish an office there and have people working for you.

What do you want from an offshore company that a just forming a local company and opening a local bank account can't do?
 

zeeoffshore

New member
the purpose is tax savings.
when you say bad reputation and banking is difficult, you mean we might face problems in receiving payments from our clients? please clarify.
 

Admin

Forum Moderator
Staff member
What do you want from an offshore company that a just forming a local company and opening a local bank account can't do?
It is actually a interesting question you rise there, I think I will reopen this in a new thread to get suggestions what the purpose other then tax evasion or banking may be.

I know that there are other purposes for such entities then just the already mentioned reason, but maybe there are even more.
 

Sols

Entrepreneur
the purpose is tax savings.
That's probably not realistic. Unless you live in a tax haven, you can't legally save on tax by having an offshore company. If you live in a developing country with limited tax law enforcement, you might be able to illegally not pay tax where you live.

The concepts of tax residence, CFC, and related topics have been covered before on this forum and you can find a lot of information about it if you search.

when you say bad reputation and banking is difficult, you mean we might face problems in receiving payments from our clients? please clarify.
You will have problems opening an account to begin with. It's not impossible, especially if you are OK with an E-Money Institution (EMI) and not a traditional bank.

This is fine if all you need it SEPA/EUR access but for other currencies and non-SEPA payments, the EMI is reliant on correspondents/partners and you may find it difficult to access GBP, USD, CAD, SGD, and so on with an offshore company.

You may also run into problems receiving payments, if your clients' finance departments don't like seeing invoices from tax havens. Some companies will refuse to work with offshore companies.
 

Martin Everson

Offshore Retiree
Mentor Group Gold
Elite Member
I know that there are other purposes for such entities then just the already mentioned reason, but maybe there are even more.

Yes there are. For non-bank passive investment or ownership activties offshore companies are good.
 

reesek

EU IBANs for everyone!
Silver Member
for asset structuring i would say, complicated shareholder agreements and proper dividend distribution
also for securitization and liquidity events (sales/purchases of assets in a SPVs)

but for tax evasion non(mis) reportable accounts are becoming new offshores
 
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