There are numerous misconceptions about the legality of an offshore company. Many people believe that an offshore company is a law-violating structure, or has been formed to cover up illegal activities. It is possible that some shareholders do commit illegal activities, but this has nothing to do with the offshore structure itself.
Another misconception is that an offshore company cannot be set up for an ordinary person. This is absolutely false! Everyone can set up an offshore company and take advantage of its numerous benefits.
It is important to note that an offshore company is legal to SET UP and USE.
Benefit 1. Provide appropriate property title
You should set up an offshore company to title real estate property purchased in another country. An offshore structure can be used to avoid numerous unnecessary tax obligations, such as FIRPTA in the US. FIRPTA is a tax equal to 15% of the property value when real estate is purchased by foreigners. With the appropriate legal assistance, you can set up an offshore structure to title your property appropriately. Do not structure real estate property in a foreign country under your own name. If you do so, you may owe unnecessary taxes and face complications during a transfer of ownership.
Benefit 2. Smooth Transition of Ownership
Offshore company can help you with the smooth transition of ownership to your heirs when you die. If you title a property under your own name, distribution of your assets maybe be subject to local laws, and this may not be your wish. Using an offshore company can help you eliminate probate in the country in which the property has been purchased. You should always hire an experienced real estate lawyer who will assist with the right offshore structure setup.
Benefit 3. Asset Protection
One of the most distinguished benefits of an offshore structure is assets protection. With numerous lawsuits taking place in a country like the United States, it is important that you keep your assets safe by placing them in a protected offshore structure. Also, an offshore company facilitates investment diversification.
Call the Law Office of Kravitz and Guerra at +1.305.372.0222 or email them at [email protected] for assistance with your offshore company setup.