After the last global economic crisis, many offshore destinations, like the Caribbean, suffered a hit in their economies causing many to be forced into austerity. But despite the economic state, savvy investors continue to capitalize on offshore investments in the Caribbean due to its benefits which far surpasses any cons imposed by the crisis.

Now, years later, the Caribbean has been fighting back to regain control of its economy and is coming out on top as one of the most sought after offshore tax havens. For example, Anguilla offshore companies and Belize offshore companies are now providing American investors with a secure and confidential place to invest their wealth while protecting those assets from any government action as well as unnecessary taxes. In addition to utilizing international companies in the Caribbean for asset protection, offshore trusts are a superb way to ensure that your assets in heirship are dispersed how you want without any legal impositions.

The Caribbean offshore financial sector provides many services to afford the asset protection, privacy and profits investors desire. The Caribbean’s economy is taking a turn for the better. Here are two ways the Caribbean is regaining strong economic stability.

Booming Tourism and Construction Sectors

Two main sectors in the Caribbean are its tourism and construction sectors. Travel and tourism has accounted for 4.5% of the region’s GDP in 2014 and is estimated to grow at a rate of 3.3% per annum from 2015 to 2022.

According to the Caribbean Development Bank, Caribbean countries like St. Kitts and Nevis, and Turks and Caicos Islands each experienced 4% increase in real estate related construction. Belize, Guyana and Suriname also had growth in excess of 3% because of construction-related services.

This rapid growth and estimated increases in growth will greatly assist the Caribbean in maintaining economic stability in years to come.

Strong Debt-Reduction Strategies are in Place

In 2012, overall public sector debt in the Caribbean was estimated at about 79% of regional GDP. Each country has devised a strategy to tackle this debt head on. For example, Belize took advantage of external debt instruments to consolidate its debt into one US dollar loan that provides cash flow relief through changes in both coupon and maturity structures. This loan allows the country to further its development on a whole while reducing its national debt.

All in all, both growing economic sectors and debt reduction strategies will lead to a more stable government. A more stable government leads to longevity of legislation and stabilization of local currencies which benefits offshore investors and guarantees consistency in their offshore businesses and accounts.

Most of the largest companies around the world have long been investing their financial assets and making the most profits on their monies offshore. But offshore investing isn’t only for the wealthy and large multi-million dollar companies; you can capitalize on offshore investments too.

One of the greatest benefits of offshore investing is how easy it is to migrate to the country you have been investing in. If you’ve been planning for your future and want to move to the Caribbean for your retirement, offshore investing is the way to go to make a profit on your hard earned money without it being heavily taxed.

Here, we’ve outlined 5 simple steps you need to take to successfully move your money offshore and capitalize on it for retirement.

1. Pick a tax haven

The most critical step when deciding to move your assets offshore is choosing a tax haven that’s right for you. Although many of these countries may have lots of similarities, there are some differences that may matter most to you.

You’d want to choose somewhere with a convenient location for international travel but is still cost effective. Belize is one such place. Along with the aforementioned qualities, Belize also has a budding offshore financial services sector with attractive benefits. Belize offshore companies, for example, are a popular choice among foreign investors because of the country’s lack of taxation on any profits made from IBCs or assets transferred via a Belize Trust.

Another great retirement destination that doubles as a beneficial tax haven is Anguilla. Anguilla is a developing country in the Caribbean with lots of beautiful beaches great for enjoying endless days of relaxation. To complement its attractive locale, its offshore sector is equally as attractive to investors. Anguilla IBCs provide significant tax exemptions while maintaining international standards in the structure and administration of its financial services regulatory body. Along with IBCs, Anguilla also has LLCs to facilitate international business. Anguilla is able to incorporate companies instantly for anyone anywhere in the world at any time of day.

It is good to shop around and see which country has the most benefits to offer you, as well as which would be the most comfortable for your lifestyle when retirement comes around.

2. Set up a foreign entity

After selecting what country you want to invest in, it’s time to decide what type of international company is right for you.

As mentioned in the first step, there are many legal foreign entities that are available for you to choose from. These include the IBC, LLC, trust, and foundation.

The IBC refers to international business company. IBCs are tax free and exchange control free private limited companies that have all profit-earning activities occurring outside its country of incorporation.

LLC refers to limited liability companies.  LLCs offer its owners attractive features like tax exemptions and privacy but with additional asset protection.

An offshore trust is a conventional trust, but it is governed by the laws of the offshore jurisdiction in which it was formed; therefore giving the assets more protection against any legal action taken against the settlor in his/her home jurisdiction.

Private foundations are legal entities set up by an individual or group of individuals to safeguard and administer assets for a specific purpose or person based on the bylaws of the foundation. A private foundation does not have any legal requirements or reporting responsibilities, giving the founders maximum privacy.

There are established offshore financial services providers in the Caribbean that can help you decide which legal foreign entity is right for you.

3. Hire a Nominee

One of the main benefits of investing your financial assets is the privacy that comes along with it. To maintain this privacy and confidentiality of your personal information, a nominee is used to physically conduct business on your behalf in the jurisdiction of incorporation. The nominee’s name will often time be the name that is listed, if necessary, on any registration documents filed in the offshore jurisdiction.

4. Open an international bank account

Opening an international bank account is a fairly easy process, and one that your nominee can do for you to ensure that your personal information isn’t accessed through bank documents. Although, having that sort of information being breached is highly unlikely since in most cases it is illegal for tax collection agencies like the IRS to obtain any information from your nominee.

5. Save your profits for retirement

Now that you’ve got your international company and offshore bank account up and running, you’re free to conduct business internationally and gain returns that you can save for your use during retirement without the worry of having it compromised by any government interventions.

Belize has many offshore investment opportunities to offer. The Belize trust is one that has many beneficial uses. Offshore trusts in Belize allow investors to take control of their assets and safeguard these assets against any lawsuits to be filed against you. Belize trusts are a great means to guarantee your assets are disbursed as you intend them to be without any fear of government interference.

Here are the 3 most beneficial uses of Belize trusts.

Tax Planning

A Belize trust is a good tax planning tool as it can provide substantial income tax savings as well as capital gains tax, inheritance tax and stamp duty if set up properly. Although it’s customary to declare all worldwide income based on government-imposed obligations, you are extended tax credits in your home country for taxes paid elsewhere. And, offshore taxes are often minimal to non-existent in jurisdictions like Belize.

Inheritance Planning

A common practice in many civil law jurisdictions, like France, Japan and the United States, is forced heirship. Forced heirship is when the estate of a deceased person is separated and distributed and passed to the deceased’s next of kin, overriding whatever was stated in the deceased’s will.

A Belize trust is a means to circumvent forced heirship as the assets of your estate will now be property of the trustee in care of the beneficiary and administered under the laws of Belize’s jurisdiction. This fact makes the assets in the trust secure from any legal interference from your home government.

Privacy

Belize trusts provide a wealth of privacy and confidentiality for offshore investors. Because assets will be removed from your possession and now be owned by the offshore trust, those assets will no longer be reported to the government as a part of your asset portfolio, thus legally eliminating the amount of taxes you have to pay at home. By using the trust to secure your assets, you’re gaining privacy, safeguarding your assets against any legal action, and ensuring that your beneficiaries will always enjoy the benefits of the assets you put aside for them.

Offshore trusts in Belize provide unmatched protection for your most valuable assets. Belize offshore trusts are free from being subjected to any liens in your home jurisdiction and offer tax exemptions on any profits or capital gains. Here are 3 ways opening an offshore trust in Belize can help you.

Asset Diversification

Asset diversification is becoming more and more important to the savvy investor. With economic markets becoming increasingly unstable, it’s best to secure your money with offshore investments to ensure that all your assets are not negatively impacted by economic changes in any one jurisdiction.

By diversifying your assets in multiple countries rather than just dividing it between various accounts and stocks within the same jurisdiction, you’re safeguarding your finances against future devaluation as well as any legal ceases.

Reserving Assets for Future Use

An offshore trust in Belize is a great way to safeguard and reserve your assets for future use. These uses can range from a will, to charitable donations, to a future fund for children. Offshore trusts allow you to safely reserve your assets within a legal obligation for the benefit of another – whether that beneficiary is a family member, loved one or charity.

Increased Privacy and Fewer Taxes

The privacy provided by an offshore trust is a big benefit settlors enjoy. When assets are placed into an offshore trust, they are no longer the property of the settlor. Should investors have assets that they don’t want to report to the government, they could place them into an international trust where they would have no obligation to report or declare the assets to their country’s government. Belize offshore trusts provide an added benefit to settlors as these Belize trusts are exempted by law income and corporate taxation. In Belize, there are no estate taxes, inheritance or succession taxes, gift taxes, nor stamp duties levied on any trusts.

The need for asset protection planning has become increasingly important as local governments seem to pry deeper and deeper into your personal finances making those hard-earned assets vulnerable to any litigious actions taken against you in your home country. Luckily, there are legal ways to safeguard your financial assets in order to eliminate any personal ties you have with them. Investing offshore in Belize provides you with those legal asset protection methods that can protect your assets against divorce or any other litigation.

Create a Belize LLC

A Belize LLC (Limited Liability Company) is a great way to protect your privacy as it will become its own legal entity and can function similarly to how a person can without using the owner’s name. A Belize LLC can open a bank account, register a car, have its own phone number, own real estate and more. By performing business affairs using the LLC, you limit exposure of your personal information. Also, in Belize, the LLC’s owner information is not published in public records. So even though the LLC is running as a public corporate entity, it is in no way publicly affiliated with you. Creating a Belize LLC is fast, affordable and secure providing you with unmatched privacy protection.

Buy Belize Real Estate

Investing in Belize real estate can provide tremendous asset and privacy protection for safeguarding your personal finances against any legal action in your home country. With low interest rates on bank savings accounts, investing in real estate is a sure way to profit on your financial assets. Belize real estate provides asset protection at a fraction of the price you’d pay for real estate in the U.S. or other parts of the world. You can buy exclusive beachfront properties in Belize for under $100,000.

Even if this property is in your name, because it is in an offshore jurisdiction, it will be safe from any legal actions being taken against it by your home government. The only way these physical assets would be at risk of any seizures would be if litigations were made in a Belizean court (which is highly improbable).

Property in a foreign country does not form any part of a U.S. property registry or tax database so it is very unlikely for your offshore investments to be linked to you. Owning Belize real estate is a sure fire way to isolate your personal assets completely from your home government, its lawyers and tax collectors.

A Belize foundation is a great way to safeguard your assets for the future while avoiding taxes. Similar to a private trust, an offshore foundation is created to safeguard assets for the future benefit of a beneficiary. However, unlike the private trust, the assets placed in an offshore foundation don’t belong to any one person, but to the foundation as a legal entity.

An offshore foundation is bound by the rules set out in its charter or by-laws. Its administrative decisions are made by a council appointed by the founder. All assets placed in the foundation are independent of the founder or beneficiaries.

Here are some beneficial uses of a Belize foundation.

Succession and Estate Planning

A foundation is a great substitute for a will in succession and estate planning. Similar to a trust, a Belize foundation can safeguard assets for a beneficiary. Because an offshore trust is a separate legal entity from its founder, all assets placed in the trust is no longer associated with any one person.  Thus the assets remain safe and unattainable to any seizures by the government or courts. The assets of the trust are only transferrable to the stated beneficiary and cannot be used for any other purpose.

Since Belize foundations are non-taxable, any estate, gift, or property taxes that may have been levied upon the assets, if they were placed in a will, would not be applied upon transfer from the foundation to the beneficiary.

Also, by using an offshore foundation to safeguard assets for your heirs, you can avoid forced heirship laws that may be in place in your home jurisdiction. The rules set out in a Belize foundation will be honored at the time of your passing despite any heirship rules in your local jurisdiction.

Pension Funds

An international foundation can be used as a vehicle to set up and maintain a pension scheme for a company or organization. Foundations are ideal for this as it keeps all the funds in the pension scheme well accounted for but independent from any one owner until the time of retirement for each pensioner. Also, having the ability to amend the by-laws as necessary makes it easy to add and remove pensioners.

Charitable Purposes

Belize foundations are the most suitable legal entity for safeguarding funds for your charity. By creating an offshore foundation, you can not only ensure your charity receives your donation, but also ensure that there is continuity in donations for your charity’s cause. The by-laws allow for rules to be set for an infinite amount of time, so even after your passing the purpose of the foundation does not change and the foundation’s council can still maintain it for the charity’s continued benefit.

Asset Protection

A Belize foundation is an asset protection and wealth management alternative to the Belize IBC. Offshore foundations allow investors to transfer ownership of their assets into a completely separate legal entity to avoid any loss due to personal liabilities, while still maintaining control over how the assets are managed and distributed.

This is possible because the founder has the power to amend the foundation’s by-laws as well as appoint or remove any member of the foundation’s council.

Consult a Belize foundation specialist, to find out how an offshore foundation in Belize can work for you.

There’s a common misconception when people hear the word “offshore”. More often than not, when you hear about anything done offshore, it’s connected to an illegal act to launder money. But that is certainly not the case majority of the time.

Offshore banking and investing is done to preserve existing assets and reduce any risks or liabilities from being levied upon them. Offshore banking is readily available in Belize, and there are experienced offshore services providers ready to provide you with a wide range of offshore investment services to protect your assets. Here are 3 ways Belize offshore investing can help you.

1. Broaden your investing opportunities

Offshore investments provide many more investment opportunities that you would have by keeping your assets only in your country of residence. Offshore investments provide less risks and a healthy return.

2. Tax Relief

The most common benefit of offshore investing in Belize has to be tax relief privileges that investors enjoy here. Belize has developed legislation on the formation of international business companies (IBC), private foundations and offshore trusts that allow for significant tax exemptions resulting in savings for you.

3. Avoid Forced Heirship

Forced heirship exists in many countries and occurs when a person’s will is altered after death. In a forced heirship there is one portion called the “indefeasible portion” where the forced estate is pass along to the deceased’s next of kin; then the second portion, known as “free estate” will be freely disposed of by the will. Forced heirship is a feature of civil law legal systems that do not recognize the total freedom of testation.

If you live in a jurisdiction that encourages forced heirship, you can avoid having your assets distributed in a manner contrary to what is stated in your will by forming an offshore trust in Belize. Because the offshore trust would be formed in Belize, your country of residence would have no jurisdiction to state how your assets are distributed after death.

If you’re ready to get started with offshore investing, contact International Corporate Services Limited (ICS). They have years of experience in the formation of international business companies in Belize as well as Anguilla, Nevis, Seychelles, Dominica, Panama, BVI and Nevis.

These two offshore financial services are the most commonly debated since they provide many benefits but are very similar in nature. Here we will discuss what each service is as well as their advantages and disadvantages to help you decide which would be best suited for you.

What is an offshore trust?

An offshore trust is a fiduciary relationship formed in an offshore jurisdiction in which a “settlor” transfers assets to a “trustee” for the benefit of a “beneficiary” or “beneficiaries”.

Offshore trusts are mainly used to ensure that assets in heirship are exempt from any legal seizures that may be implicated against the settlor’s assets in their home jurisdiction. However, offshore trusts can be developed at any time and for many other reasons than just fulfilling a will.

Trusts are not a legal entity but rather a legal obligation that is agreed upon among two parties (the settlor and trustee) for the benefit of a third party (beneficiary).

There are three minimum certainties that must be present in every trust that makes them valid:

1. “Certainty of Intention” which clearly states his intention of establishing the trust and grant the trustee with legal control of the assets.
2. “Certainty of Subject Matter” which clearly states the assets that will form the trust.
3. “Certainty of Objects” which clearly states for whom the trust was created and who will receive any subsequent assets held in the trust.

There are many other factors that make up a valid trust; but without the three abovementioned certainties, the trust will be invalid.

What is a private foundation?

A private foundation is an independent self-governing entity that is set up and registered by an official body within the jurisdiction of where it was set up in order to hold an endowment provided by the founder and/or others for a particular purpose for the benefit of beneficiaries. Private foundations do not have the ability to engage directly in commercial activities and does not allow member to hold shares.

What are the main differences between an offshore trust and a foundation?

• A private foundation is an independent self-governing legal entity; while a trust is a legal obligation between two parties.
• A private foundation is registered and publicly recorded to the government; while the specifics of a trust are not normally readily available to the public.
• The assets of a private foundation are placed into the foundation on behalf of the beneficiary and not in the custody of any one person; while the assets of the trust are placed in the custody of a trustee on behalf of beneficiaries
• Trusts may be used for certain commercial activities while a foundation cannot.

How are trusts and foundations similar?

• Both are set up for the benefit of their beneficiaries.
• Neither have shareholders, only beneficiaries.

If you want to find out more about how an offshore trust or private foundation can work for you, contact the Belize offshore experts at ICS.

International Corporate Services Ltd. (ICS) is a premier licensed International Financial Services provider in Belize. They focus on the formation of Belize IBC’s, Belize offshore trusts and private foundations in Belize.  Below we’ll uncover some frequently asked questions about Belize foundations.

What is a Private foundation?

A private foundation is an independent self-governing legal entity that is set up and registered by an official body within a jurisdiction in order to hold an endowment for the benefit of beneficiaries. Private foundations do not engage directly in commercial operations and exists without shares.

Private foundations are like a hybrid between an offshore company and an offshore trust because it can take part in business transactions like an IBC and has beneficiaries like a trust. But an offshore foundation is developed separately from these entities and has its own special applications.

Why do I need a foundation?

Private foundations are a great way to protect assets against any future personal liabilities. By creating a Belize foundation and gifting these assets (endowments), they will become free and clear from any claims made personally against you.

Belize foundations can also be used to mitigate forced heir ship provisions. By forming a foundation to manage the assets, you are guaranteed that the assets will be distributed in accordance to your wishes.

Would I be able to regain control of my assets after forming the foundation?

You can still have control over your assets by naming yourself as the ultimate beneficiary of the foundation or by undertaking the role of the protector of the foundation. As the protector, you can override the powers of the foundation council.

Who is the protector of a foundation?

The protector of a foundation is someone that is appointed by the foundation’s creator. The appointed protector of the foundation will have the ultimate say in how the foundation is run. The protector can also be the founder of the foundation but not a member of the foundation council.

What is the legal status of a foundation?

All Belize foundations are legal corporate entities with a legal personality as well as rights and status of a separate and independent person. The private foundation can enter into contracts; sign agreements; own bank accounts; buy and sell, trade and conduct business; and own shares or interest in other companies.

Can a foundation be a shareholder of an offshore company?

Yes it can. A Belize foundation can be involved in any legal business activity, and this activity can in turn create wealth for the foundation.

What is the difference between a Belize foundation and an offshore trust?

Foundations and trusts have very similar qualities but they have very unique purposes. A foundation is a corporate entity with its own legal personality separate from its founders, councilors and beneficiaries. On the other a hand, a trust is a legal arrangement that involves a formal transfer of assets from settlor to the trustee for the benefit of a beneficiary.

The assets of a foundation are owned by the foundation and not by any one person. The assets of a trust are legally owned by the trustee and the beneficiary has beneficial ownership.

To remain valid, a foundation simply needs to be properly incorporated; but a trust must meet certain conditions at all times to be effective.

Contact ICS for more information on establishing Belize foundations and other offshore formations. ICS also provides offshore company formations in various jurisdictions including Anguilla, Seychelles, Nevis, Dominica, BVI and Panama.