Tax Haven Benefits: 10 Essentials for Escaping the IRS

Tax haven benefits are necessary for credible offshore asset protection. This is not nearly as controversial as it seems. Although it is unfortunate that the best tax havens often evoke condemnation from the OECD, there is on the other hand much to admire about these beautiful tax haven countries.

How can you take advantage of the best tax haven benefits? 1) Your asset protection plan must be based in a legitimate offshore tax haven. 2) You also need a multi-layered strategy to be effective.

This post will tell you everything you must know. How can you get the best offshore asset protection in a legitimate tax haven? 

Legitimate Offshore Tax Havens

So who are the biggest critics condemning offshore tax havens ? Mostly OECD countries with huge inflows of illicit funds are unequivocally the sharpest critics. On the other hand, peace loving, palm fringed tropical islands with no standing military or international propaganda network make an easy target.

Indeed, the ratio of illicit funds flow on a global scale shows that 99% is held in OECD tax havens, while only 1% is held by stereotype tropical islands. Therefore, you should not let a few bad apples deter prudent tax planning. Legitimate tax havens offer long term solutions.

Why Do You Need Tax Haven Benefits?

There is in fact much to admire about legitimate tax havens. To be clear, the best tax haven countries respect the financial privacy of their citizens and residents. Additionally, they are vibrant democracies with strong majorities in support of the financial sector. Why shouldn’t legitimate high net worth individuals seek their protection? The benefits are mutual.

Furthermore, many good reasons exist as to why you should stop funding the runaway budget deficits of your government. Where is the reciprocity in paying a 40% income tax rate? Is it foreign wars, lavish fiscal stimulus and financial bubbles galore? The answer is unequivocally no. You need a Plan B to protect your family, your assets and your future. Tax haven benefits provide the foundation.

Just like fire alarms, parachutes and life boats, an offshore asset protection strategy is a minor inconvenience to set up. However, there are huge paybacks on the day disaster strikes. Do not wait until the day of the crash, be ready for the unexpected, you will thank me later. Time is of the essence.

Is Your Offshore Asset Protection Plan Credible?

You must have a credible connection to a tax haven country. This nexus can be in the form of citizenship, tax residency, offshore trusts or incorporation. Better yet, a combination of all four is ideal. As a result, your offshore asset protection plan will be enforceable.  

  1. Tax Haven Citizenship – Do you have a clean background, verifiable source of funds, clean bill of health? So far, so good. To establish a nexus through citizenship by investment, these factors must be fulfilled.
  2. Tax Residency – Live in the country for the requisite period of time per year to establish tax residency. Usually a minimum of 6 months or less will suffice. However, for credibility it is advisable to have multiple connections to the country not only residency e.g. citizenship, real estate ownership.
  3. Incorporation – An offshore corporation is an invaluable source of tax free income. Easy to acquire, your new company can be registered offshore within 1 or 2 days at a nominal cost. Ideal for use with an offshore trust.
  4. Offshore Trust – A legal instrument such as a offshore asset protection trust will provide a diverse asset ownership structure. Used in combination with other tax haven benefits such as a corporation or citizenship, it can be impenetrable.
  5. Credibility – Last but not least, your tax haven benefits must be accepted internationally. What do I mean by this? The country that is imposing tax on you must recognize your tax haven residency claim. Indeed, a multi-layered asset protection plan will ensure legal credibility.

Combining the best tax haven benefits to create an effective offshore asset protection strategy is not a slam dunk proposition. To be successful you will need lasting connections. It is a one~two punch. Done correctly, your offshore asset protection will last a lifetime.

Tax Haven Benefits List

  1. Citizenship Programs
  2. Secrecy Laws and Privacy
  3. Diverse Asset Ownership Structure
  4. Legal Protection
  5. Colonial Legacy Benefits
  6. Political Neutrality
  7. Credible Due Diligence
  8. Caribbean Tax Residency
  9. Secure Investment Options
  10. Supporting Links

Citizenship by Investment Programs

Tax haven benefits need the solid bond of citizenship. Since the best tax haven countries also offer citizenship by investment programs, this bond can be efficiently secured. It is very beneficial being allowed to forgo traditional citizenship requirements such as marriage, foreign language, long term residency requirements et cetera.

For qualified applicants with a clean background, verifiable source of assets and medical certificate traditional requirements are obsolete. You must also make the required minimal investment into the host country’s economy. As a result, you can have the best tax haven citizenship within 2-3 months.   

Approval can be predetermined which is an additional benefit. Therefore, we know in advance if your application would face obstacles. If so, we would prepare accordingly. Then once citizenship is secured, you have the strongest possible connection to build on. But most importantly, you would now also have the option of renunciation.

Renunciation of your original citizenship is indeed the ultimate protection against the government changing income tax regulations after you have already relied on them. This enables you to avoid new exit taxes and rules meant to deter offshore tax residency before they can become effective.

However, you need the passport in advance. Do not wait until it is too late to rush for the exit. Beat the crowds and get your tax haven citizenship today.

Secrecy Laws and Privacy Protection

Secrecy is the Damocles sword of all offshore asset protection plans. Indeed, the best tax haven benefits include legal protections for your privacy. For example, if a bank employee passes your information to an unauthorized entity such as a news reporter, it is a criminal offense.

There are many examples of mass produced offshore company formations that were fraught with insecurity e.g. Panama Papers, LuxLeaks, Pandora Papers. However, the vast majority of personal information that was leaked was circumstantial, meaning it had no proven associations with crime.  

To ensure your privacy is secure, be wary of quick solutions in risky jurisdictions. British Virgin Islands, Panama and Jersey are offshore magnets with notorious reputations. There are better alternatives.

Caribbean countries such as Dominica and St Kitts and Nevis, offer offshore asset protection in addition to the world’s best citizenship programs. There is no requirement to ever notify your country of origin about your application.

St Kitts citizenship with Nevis LLC used in combination with the Nevis Trust will secure your assets beyond the reach of the most voracious creditors. This time tested offshore asset protection strategy is off the radar or even if they can find it, it is impenetrable.

Diverse Asset Ownership Structure

Diversify the ownership structure of your assets, but retain control. Some of the world’s wealthiest families, including the Rockefeller dynasty, have used asset protection trusts for generations.

However, there is nothing exclusive about asset protection trusts. The world’s most secure trusts, both onshore and offshore are financially accessible even if you are not wealthy. You certainly do not need to be a billionaire to form an offshore asset protection trust.

Indeed, trusts are legal instruments that have been used since the time of the Crusades to protect assets. Rest assured that they are time tested and completely legit.

Reputable tax haven countries such as St Kitts and Nevis offer the time tested security of offshore trust protection. For example, the Nevis Trust in combination with the Nevis LLC is impenetrable. It protects the assets inside the trust, yet with the requisite legal structure, the settlor can still retain control.

In addition, trust beneficiaries and also the settlor can be a St Kitts citizens. Although not required, it will increase the credibility of your offshore asset protection plan. The level of protection will be enough to deter the most formidable legal team, including the IRS.

From top to bottom, tax haven countries provide legal tools for offshore asset protection. Constitutional protection is the same for citizenship by investment as it is for birth citizens. Additionally, stringent due diligence during the application process ensures the longevity of the programs.

Furthermore, offshore asset protection trusts are legally fortified. Even creditors with formidable legal resources at their disposal such as the IRS have failed to crack the protection of the Nevis Trust.

Indeed, the Nevis International Exempt Trust Ordinance provides for the creation of various types of international trusts. Legal facilitation is provided for Charitable Trusts, Non-Charitable Trusts, Spendthrift Trusts, Protective Trusts and Qualified Foreign Trusts. Notable legal protections for the Nevis Trust include:

  1. Forced heirship rules are not enforceable against the settlor.
  2. The rule against perpetuities does not apply.
  3. Foreign judgements against the trust are not enforceable in Nevis.
  4. The sole remedy available for the creditor is to allege fraudulent transfer of the trust assets.
  5. Creditors must allege fraudulent transfer within one year after the transfer of the trust assets to be effective. 
  6. Level of proof for alleged fraudulent transfer is “beyond a reasonable doubt and with clear and convincing evidence”.
  7. A creditor of a beneficiary cannot compel or force a distribution with regard to a discretionary interest in an international trust.

Colonial Legacy Tax Haven Benefits

The world’s best offshore tax havens referenced in this post were all part of the colonial web of the United Kingdom. They have now become member countries within the British Commonwealth, British Overseas Territories or British Crown Dependencies.

Certain legacy benefits within the countries remain such as the use of English Common Law. Additionally, English is the spoken language. Citizens of the Commonwealth also have certain privileges within the UK such as the right to vote (for residents) and your children may access schools and work visas inside the UK.

Commonwealth Citizens can also obtain assistance in British consulates and embassies where your own country does not have a embassy or consular presence.

Furthermore, tax haven benefits are implicitly backed by the British Parliament. The UK parliament has legal oversight over the Crown Dependencies and British Overseas Territories. If necessary, they could override local legislation in those countries. However, they have not done so to date which provides implicit backing to Caribbean tax havens.

Political Neutrality

Small island tax havens in the Caribbean and South Pacific are politically neutral. As a result, they have no standing militaries. This non-aggressive foreign policy means that they have no notable enemies. Therefore, citizens of Caribbean countries plus Vanuatu are free to travel and enter business arrangements where it would otherwise be forbidden. The stigma of beggar thy neighbor international relations which your former country imposed is no longer a barrier.

Credible Due Diligence

Due diligence protocols for citizenship and bank account applications are necessities for all parties involved. Strong protection is needed to maintain international credibility. Fortunately, Caribbean tax havens have well established due diligence regimes. Additionally, their established offshore financial centers allow seamless international transactions in foreign currency.

Indeed, it is worth the trouble to complete the stringent due diligence process. As a result, long standing citizenship programs such as the St Kitts and also Dominica are ideal.

On the other hand programs that have lapsed their due diligence regime loose favor in the eyes of international banking institutions. It is best to invest in predictable well established citizenship programs with well respected international banking protocols.

These programs are available and with the guidance of our expert team, qualified applicants have nothing to fear.

Caribbean Tax Residency

Citizenship opens all doors to tax residency. As a citizen of a tax haven country, you have an immediate claim to tax residency overseas. As I have explained many times before, a strong offshore asset protection plan with credible links to a tax haven allows you to establish tax residency in a broad selection of countries.

However, tax residency where citizenship is lacking is devoid of the legal credibility which has become increasingly necessary. This is especially true with rapidly changing financial regulations. To be clear, the global tax net can still be eluded, but you need a lasting solution.

As a US citizen, foreign tax residency is irrelevant because wherever you go, you are still a tax resident of the US. Therefore, you retain US tax obligations. So for US citizens, there are very few options other than renunciation in order to escape US income tax and financial hegemony.

Other countries such as the United Kingdom may accept a tax haven residency claim without the bond of citizenship e.g. deemed domiciled rules. Nonetheless, they can change the rules again. It is best to have the indefinite protection of citizenship in addition to other links to the country, including residency.

Do you want to establish tax residency without citizenship? Residence in the country from 2-6 months per year will usually suffice, depending on the local regulations. But the credibility of bare bones residency is ambiguous without additional links to the country. Indeed, a strong multi-layered nexus is necessary to be effective. Otherwise, you could get stuck paying tax just the same.

Secure Investment Options

Caribbean tax haven benefits include real estate investment options. Do you want to invest in luxury real estate that will also provide you with a tax haven passport? It is possible to buy trust shares or deeded real estate that is part of an established 5 star Caribbean resort. The versatility of choosing the real estate investment option to qualify for citizenship is extraordinary. 

  1. The property can be sold after the holding period to recoup the investment while retaining citizenship in perpetuity.
  2. Earn a respectable investment yield of 4-5% through the profit sharing program.
  3. Stay at the resort for one week per year rent free.
  4. The citizenship program provides price support. As a result, market volatility outside the program is not a factor. The market price is stable, year in year out.
  5. Inflation hedging is possible through investment in Caribbean real estate. Indeed, well established luxury resorts can raise room rates accordingly. Plus, the market price is pegged to citizenship.
  6. Trust shares secure the privacy of the real owners behind the real estate trust. Therefore, ownership is 100% confidential.
  7. Trust ownership also allows you to avoid transfer taxes when it comes time to sell.

Choose from our selection of luxury properties. Quality is better than quantity, invest in time tested developers with strong political bonds to the host country. Additionally, get the best investment yield plus the best selling price when it comes time to exit.

There is no necessity to buy property during the construction phase, well established options are already available.  

Post citizenship services include providing you with supporting links to your tax haven. As a result, a multi-layered nexus will withstand any legal scrutiny that may arise. The quintessential links needed include a tax identification number, local driver’s license, local address, SIM card/phone bills plus a local source of income.

How can you acquire these essentials? Local real estate ownership is a tremendous asset to have. In addition to qualifying for citizenship, local real estate ownership goes a long way in providing the most important links.

Besides a local address connected to the property, you will own a local asset. Also, the resort properties generate income. Through the profit sharing programs you receive an investment yield from local sources. All of these elements add up to form a multilayered protection strategy to ward off international income tax.

Furthermore, the lifelong benefit of citizenship is everlasting and can be passed on through generations. What have you got to lose? Apply today for your second citizenship and open the doors to global access and economic freedom.

My partners and I have 35+ years of experience working with the Caribbean citizenship programs plus Vanuatu. As a result, we are well established with the local real estate developers and government agencies. You can rest assured that we will provide optimal service at the lowest cost in the most efficient manner possible.

Time is of the essence. Secure the future of your family, your assets and your freedom with citizenship by investment.