Going Offshore – Legal or Not?

Nobody would like to risk his money and freedom. That’s why many people start thinking about going offshore with that particular question.

A general answer would be “yes, to go offshore is legal”. However the definition of “going offshore” is not that straightforward.

Why do You Go Offshore?

Everything mostly depends on the actual intentions of the person. If somebody goes offshore to evade taxation, launder criminal money or hide another criminal activities, well, this is obviously illegal and being prosecuted under law.

Though if you mean just to legally reduce or avoid a high tax burden and keep your assets safe and secure, this is your constitutional right and no one should prevent you from enjoying it.

The main thing you should have in mind is organizing your affairs abroad in an absolutely legal way.

Harmonize Your Business in All Jurisdictions to Keep it Legal

Sometimes it seems to be very easy to conduct your business offshore – no taxes, no reporting. However in most situations you may need to harmonize it with your partner jurisdiction business law and your own current tax residence legislation.

Even if you just have a private bank account abroad you may need to report it to your local authorities and there may be other associated obligations imposed by the law.

Check it first, do your best to consider as much factors of your future offshore business as you can before you start doing things. Don’t hesitate to go for a consultation with an international offshore advisor, as well as trusted lawyers, auditors and business partners in your home country who may appear to already have a similar experience. Get sure you live within the letter of the law. It’s better to be safe than sorry.