Today we discuss why offshore companies can be powerful tools to protect your assets, optimize your business and drastically increase your net profits.
Why your Tax Residency matters
Contrary to what is said, do not expect to incorporate an offshore company and automatically slash your tax bill to 0.
It is not that simple.
Implementing an offshore company strategy without planting the proper tax residency flag can lead you to several issues and it might not have any upside from a tax standpoint.
For instance, let’s say that you are a Spanish tax resident and you incorporate in the Seychelles. You will enjoy some benefits related to asset protection and achieve a certain degree of privacy, but you won’t have any tax benefit.