What is the best way to protect assets offshore? Unfortunately, in this day and age you have got to look before you leap. Times change, since offshore asset protection has now become somewhat controversial, the first step would be to avoid British Overseas Territories and Crown Dependencies.
Here is why they should be avoided: Indeed, for decades asset protection in those jurisdictions was the most popular mass market strategy, but thanks to some egregious oversights, the inevitable has occurred. This has become readily apparent with the unfolding scandals in the British Virgin Islands which come in the wake of the Panama Papers. As a result, the Cayman Islands along with the Channel Islands could soon be the next chips to fall. A wise investor will look elsewhere.
Nonetheless, the necessity of using a plan B to effectively protect your assets and yourself is more pertinent now than ever before. But you must do it in a legitimate country. Fortunately, this is much easier than it sounds!
Allow me to introduce you to a 100% legitimate tax haven such as St Kitts and Nevis. They have successfully built on their long standing, good reputation for the St Kitts citizenship by investment program. Not to mention, St Kitts and Nevis is a politically neutral country.
In further benefit, St Kitts and Nevis offers legal tools to protect your assets offshore, it is not only citizenship anymore. This includes the Nevis Trust, Nevis LLC and Nevis IBC. Continue Reading→
Table of Contents:
- Protect Assets Offshore with a Multi Layered Strategy
- Buy St Kitts and Nevis Real Estate to get St Kitts Citizenship
- Procure St Kitts and Nevis Tax Residency Credentials
- How to Protect the Beneficial Owner
- Protect Assets Offshore with the Nevis LLC
- Introduction to the Nevis IBC
- Superior Protection with a Nevis Trust
- Choose iGlobal to Protect Assets Offshore
Protect Assets Offshore with a Multi Layered Strategy
The reason for using St Kitts and Nevis to protect your assets offshore is simple, just avoid the obvious. This island federation in the Eastern Caribbean eliminated all personal income tax way back in 1980. Therefore, they have a long history of being tax free. Additionally, their banking privacy laws are strict with prison sentences for violations. Yes, it is similar to Switzerland but without the shady reputation and Byzantine tax laws.
To be clear, St Kitts and Nevis is a clean break from traditional money laundering centers mentioned above that are hidden in plain sight. In St Kitts and Nevis, safely protect your assets using a multi pronged approach.
Start with the world’s most venerable citizenship by investment program. In addition, peruse the exclusive asset protection options on the Island of Nevis. Learn how to use this multi layer protection strategy. I will tell you everything you need to know in order to accomplish your objectives in the most efficient cost effective manner possible.
As a result, create multiple layers of protection that will secure your assets for many lifetimes. Now you can pass wealth through generations and avoid high inheritance tax rates in the United Kingdom and the United States.
All in all, when you protect your assets in St Kitts and Nevis, it will pay for itself many times over in a short period of time.
Protect Your Assets with St Kitts and Nevis Real Estate
There are several real estate investment opportunities in St Kitts. Since the grand opening in 2017, the Park Hyatt, St Kitts investment option has emerged as the best of them. As a result, citizenship applicants can purchase 1/2 share in the property for an investment amount of $220,000. This will satisfy the investment requirement for the citizenship program.
Applicants will also need to verify their source of funds, provide police certificates and get a medical examination. The process to qualify for the citizenship program is simple and straight forward.
Since our clients are 100% legit, this is not an obstacle. Proper verification is essential, we will guide you through every step of the process. You can have your new passports within 3 months and be protecting your assets offshore soon afterwards.
Park Hyatt, St Kitts Purchase Benefits:
- Sell the property in seven years to recoup your capital.
- You also earn a 4-5% investment yield along the way.
- Stay there rent free for 7 days per year.
- Establish an important nexus to the St Kitts tax haven.
- Trust shares protect the confidentiality of the beneficial owner.
Acquire St Kitts Tax Residency Credentials
The cornerstone of the best asset protection plan is citizenship in the right jurisdiction. It logically follows that a citizen of a county also has a legitimate nexus. As a result, opening offshore bank accounts, new residency applications and acquiring other essentials is a seamless process because you have the right documents prepared in advance.
St Kitts and Nevis Residency Credentials:
- Local Street Address
- Utility Bill, Water bill for address verification
- St Kitts Driver’s License
- Tax Identification Number (TIN)
- TIN Certification Letter from the St Kitts Government
You can form a 100% legitimate nexus to St Kitts and Nevis using these essential tools. Therefore, opening offshore bank accounts in Europe or other countries will be a streamlined affair.
Choose the best country for the most optimal tax residency, live where you choose. These tax residency credentials will lay the foundation and allow you to protect assets offshore effectively and efficiently.
How to Protect the Beneficial Owner
The beneficial owner receives income or holds assets through a legal arrangement such as a Nevis Trust. In addition, a legal entity can be used to hold your assets inside of the trust such as a Nevis Limited Liability Company (Nevis LLC) or a Nevis IBC. As a result, this further protects the beneficial owner inside of the trust from creditors or adversaries trying to seize assets.
Not to mention, the Island of Nevis has distinct banking, trust formation and company formation laws which are exclusive from St Kitts. These legal protections eliminate vulnerability and provide long term protection.
The legal arrangements proposed above can be combined and layered most effectively to supplement St Kitts and Nevis citizenship. For example, you are the beneficial owner of assets and you also hold citizenship in a favorable jurisdiction. So you benefit from no income tax, banking privacy, global access et cetera.
Then as a St Kitts and Nevis citizen, you form a Nevis LLC or a Nevis IBC with yourself as a controlling member or officer. It is another layer of protection that compliments St Kitts citizenship. In further benefit, place the company inside of a Nevis Trust with yourself and your family named as trust beneficiaries.
Inside the trust, the company officer, manager or controlling member can be another company such as an LLC or corporation. Your privacy is well protected at the core as the beneficial owner.
The end result is a multi layered strategy to protect assets offshore. In addition, the use of nominee directors or LLC managers is also permitted. This creates layer after layer of protection for the security of the true beneficial owners.
Superior Protection with the Nevis LLC
The Nevis LLC is a flexible legal entity. As a result, in certain situations it could be used in place of the Nevis Trust. Indeed, the crux of an irrevocable trust requires you to permanently give up ownership (but not necessarily control) of your assets. Ownership is then held in the name of a trustee, however the trustee could restrict control of the assets beyond your liking.
A Nevis LLC on the other hand, allows for significantly more flexibility. For example, you could appoint a nominee manager with yourself serving as member of the LLC. In practice, the nominee manager is similar to a trustee while the member is the true beneficial owner.
The result is confidentiality, liability protection, tax advantages and asset ownership retention. Therefore, you remain in complete control of your assets. The advantage is worth considering. On the other hand, in combination a Nevis LLC and Nevis Trust is a superior form of protection.
Nevis LLC Benefits List:
- Creditor bond of no less than USD 100,000 is required before a legal action can be initiated against the Nevis LLC.
- By default, the jurisdiction of governing law is Saint Kitts and Nevis, unless it is otherwise agreed between the Nevis LLC and the chargee.
- No judgment originating from a foreign jurisdiction shall be allowed to affect the member’s interest.
- Certificates of membership are permitted which are deemed the sole evidence of LLC ownership.
- Ownership structure is flexible; nominee managers are permitted, company officers are not required but can be included, likewise a manager is not required but may be included.
- The legal identity of the beneficial owner is confidential.
- Banking secrecy laws protect the client’s identity.
- Foreign income of the Nevis LLC is tax exempt.
Introduction to the Nevis International Business Corporation
Also known as an “International Business Corporation”, a Nevis IBC is formed under the Nevis Business Corporation Ordinance 2017. In contrast with the Nevis LLC, a Nevis IBC has company officers instead of members.
The company tax filings are exclusive from the individual tax filings of the company officers and beneficial owners. While the Nevis LLC is similar to the tax structure of an S-corporation.
In further benefit, a Nevis IBC can serve as member or manager of a Nevis LLC. It can serve as settlor of a Nevis Trust in addition to other applications.
Nevis IBC Benefits List:
- All foreign income is tax exempt.
- Banking secrecy laws exist which impose prison terms for disclosing a client’s banking details to a third party.
- Corporations are permitted to serve as company directors or company secretary.
- The legal identity of the beneficial owner is kept confidential.
- Bearer shares are allowed with the approval of the Registrar of Companies, certain restrictions may apply.
Superior Protection with a Nevis Trust
To further solidify the protections of the Nevis LLC or Nevis IBC, a Nevis Trust is the final step for your offshore asset protection plan. Inclusion of the Nevis LLC in the trust further insulates your assets. Additionally, the Nevis LLC can serve as trustee.
The Nevis Trust is irrevocable, it requires you to relinquish ownership of your assets to a trustee before including them in the trust. However, the trust can be structured to allow you to control the assets and income distribution of the trust. Careful preparation of the trust deed is essential.
Essentially, the Nevis Trust provides additional protection from creditors where the Nevis LLC on its own may fall short. So if you can come to terms with losing ownership of your assets, then the Nevis Trust will better protect assets offshore.
The Nevis Trust is literally impenetrable, even formidable creditors such as the IRS armed with the limitless resources of the US government have failed to break the security of the Nevis Trust.
Nevis Trust Benefits List:
- No rule against perpetuities shall be enforceable.
- The only remedy available to creditors is to allege fraudulent transfer or disposition.
- Creditors must prove their allegation “beyond a reasonable doubt”.
- To discourage fraudulent claims, creditors must post a security bond in the amount of USD 100,000.
- Judgements originating in a foreign jurisdiction are not enforceable against a Nevis Trust.
- Heirship rules are unenforceable against a Nevis Trust.
- Identity of the settlor must be registered but an entity or nominee can be used.
- A “public record” of trust registration information is not made available online.
- Foreign income of a Nevis Trust is tax exempt.
- Local banking laws impose prison terms for disclosing a client’s banking data to any third party.
Protect Assets Offshore with iGlobal
My partners and I have 35+ years of experience working with Caribbean citizenship by investment programs. In addition, we are well integrated locally to ensure that your St Kitts and Nevis asset protection plan is properly implemented.
The foundation of the plan outlined above is St Kitts and Nevis citizenship by way of real estate investment in St Kitts. You can sell the property at the end of the holding period, while retaining citizenship in perpetuity. Rest assured, we will be there to follow through with the sale. You will get the best possible selling price.
Trust formation is a matter for a local trust attorney, who you can personally select or we can recommend someone adequate for the job. This really is the easy part, nonetheless careful thought must be given to the trust deed. You can choose how to protect the assets.
From beginning to end, we will be there to provide support when needed and navigate the legal system. Success is assured in the most efficient and cost effective manner possible. Contact me today to begin your journey to global access and economic freedom.
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