It’s true that the US tax code can be punishing to the investment class. Capital gains, estate taxes, and a hundred other cuts can sap the strength of your portfolio and leave just a husk of your carefully planned financial legacy for family and loved ones.
But it doesn’t have to be this way. Securing assets in offshore accounts in Central American countries such as Belize offers investors a simple, rewarding, and completely legal way to shield their wealth from onerous domestic taxes. When it comes to protection from tax offshore is the place to be.
Setting Up a Business in Paradise
Let’s say that you decide on Belize as the country with the most advantageous tax rates, described in this article as a “no-tax regime.” The beaches and tropical beauty are wonderful for a visit or longer, but why does setting up a foreign business make sense?
There are two main reasons: Lower taxes and a standard of confidentiality and privacy that the US system can’t or won’t provide. The main requirement for starting a business in another country is that it is located wholly outside of the United States – because then the company’s finances are subject only to the adopted country’s tax laws and privacy policies.
Trusting in Foreign Trusts
As with US businesses located in other countries such as Belize to take advantage of local laws, so is it with foreign trusts. They work the same as regular US trust funds but are geographically located in the foreign country.
A beneficiary is named and payments are made just as in domestic funds, but the foreign trust’s location once again dictates how much is due in taxes and who will pay those taxes. In many cases, the second point will be moot because the first comes to zero dollars.
Give Credit to Credit Cards
Many Americans living the expat lifestyle in Belize or just conducting banking business there can benefit from the tax-shielding programs. Many such businesses are established throughout the Central American region for this very reason.
All interested in tax offshore should click here to investigate the varied accounts and potential credit-based businesses that are available to creatively thinking investors.
There’s a lot to learn when it comes to diversifying, protecting, and even growing your wealth with offshore banking, but many emigres and expats in a fair-tax country like Belize can offer advice and share stories of their experiences in a modern-day paradise to help investors see that this is a financial choice that many everyday investors, not just the 1 percent, are making to keep their assets safe.
Also tax and business professionals at home and abroad can help to guide the beginner when it comes to offshore banking. There is a wealth of information out there for you to learn, facts that will help you to an informed decision on banking in another country.