Three Best Offshore Asset Structures in Belize
Contributed by Caye International Bank
15 November, 2018
Belize is such an appealing place to invest for many reasons. One of those is that Belize offers a wide range of investment opportunities. What's important to remember, however, is that offshore asset structures can appeal to different groups of people. A structure that is the perfect solution for one individual might not meet the needs of another investor.
By taking a closer look at the top three best offshore asset protection options, you can get a better feel for the offshore asset structures in Belize that are the right fit for you and some of their requirements.
1. International Trusts
Trusts are perhaps one of the most widely use asset protection structures in the world. A trust is established when a person who owns certain assets transfers them into the hands of a trustee. With that transfer, the original owner no longer has financial or legal liability over the assets. Instead, the trustee is tasked with managing the assets. The beneficiaries of the trust are the third-party individuals or groups that stand to benefit from the trust.
Although it is possible to establish an international trust in destinations across the globe, Belize is especially appealing because its laws provide better protection for the assets stored within these trusts. An international trust established in Belize can be an effective way to protect your assets from seizure. In the unlikely event of an asset freeze or a declaration of bankruptcy, the assets in your trust are not eligible for seizure. Since they are no longer owned by you specifically, they can't be taken away from you. This can offer peace of mind for those who are at particular risk for any legal conflicts.
An international trust is also an appealing option for those who want to start estate planning. By establishing an international trust in Belize, you can get very specific about who you want to inherit your assets in the years to come. You can earmark certain assets for specific individuals or occasions, and these plans can be kept private and confidential.
At the same time, it is worth noting that establishing an international trust has an added tax benefit. This is especially true when you set up an international trust in Belize. By minimizing tax erosion, you can protect more of your assets and ensure that your loved ones have access to as much of your hard-earned wealth as possible.
2. International Business Companies
For those who have investments that need to be utilized, an International Business Company (IBC) in Belize can be a strong choice. In an effort to encourage international businesses to operate in Belize, the government established a program where companies could incorporate and qualify as IBCs.
In order to be an IBC, a business cannot profit from any business activity within Belize. That means you can't directly offer goods or services to those living in Belize. However, if your business operates anywhere else in the world, you can be headquartered in Belize and benefit from being an official IBC.
Some of the many assets that can be stored in an IBC might include machinery, copyrights, patents, intellectual property, or foreign real estate. An IBC is recommended for those who are making profits and actively using assets. An IBC is less likely to be the right choice if it contains passive assets.
Arguably the best justification for having an IBC is that the assets it contains, and the profits it makes, won't be taxed in Belize. That means you can better protect the money you make without sacrificing profits to taxation.
An International Business Company can also be a very private asset structure. Board members and directors can be kept anonymous, should that be desired. In addition, IBCs aren't forced to disclose their financial records. The government should know the location of where financial records are kept and businesses are free to store their records anywhere in the world that is most convenient to their operations. In short, having an IBC means enjoying more flexibility and freedom than can be found when operating businesses elsewhere in the world.
3. Private Placement Life Insurance
In order to begin estate planning as efficiently as possible, private placement life insurance can be an excellent option. An offshore life insurance policy can protect your assets while simultaneously avoiding tax erosion. Private placement life insurance is an especially smart choice if you currently hold a number of investments that are earning significant profits or dividends. Holding these types of investments without the benefit of a life insurance wrapper can mean you're paying large sums annually for taxes, which is certainly not anything that an investor wants.
A private placement life insurance in Belize operates differently from a more traditional life insurance policy. Instead of paying in fixed sums each month or year as payment, the insurance policy thrives thanks to investments that create their own constant sources of revenue.
Another benefit of this type of insurance product is that you can better pass on assets to loved ones and dependents without tax gouging. You've worked hard to save and accumulate wealth, and you shouldn't be penalized for that. Through the protection of private placement life insurance, you'll be better able to pass wealth to your heirs. This is because the assets within the life insurance policy are no longer held directly in your name. This is especially true in like Belize, where asset structures aren't taxed as heavily as they are in jurisdictions like North America.
Finally, it is worth noting that placing assets into a private placement life insurance policy doesn't necessarily mean the assets are no longer available to you. Tax-deferred withdrawals or loans from the policy can provide you with capital in a hurry, should that ever become necessary. When looking for this type of insurance, it is important to find a provider who maintains compliance with international standards such as those required by the International Insurance Act Chapter 269, Revised Edition 2000 of the laws of Belize.
Offshore trusts, International Business Companies, and private placement life insurance policies are great options for individuals who are ready to protect their wealth and diversify their holdings. Caye International Bank headquartered on Ambergris Caye island in Belize, Central America can help you get your offshore bank account set up, as well as assist you through the process of acquiring the best offshore asset for you and your family.
Contact Caye Bank today to for the information you need to get started.
About this author
Luigi Wewege is the Senior Vice President of Caye International Bank, published author of The Digital Banking Revolution, has co-authored economic research which was presented before the U.S. Congress and currently serves as an Instructor at the FinTech School as well as a Speaker at the Silicon Valley Innovation Centre. He holds an Italian MBA with a major in International Business, as well as a BSBA with a triple major in Finance, International Business, and Management - cum laude from the University of Missouri-St. Louis.
« Go Back to Articles