Selecting a jurisdiction for the formation of your offshore foundation will depend upon your exact requirements and reasons for wanting to set up the foundation in the first place. Many people form offshore foundations for a number of reasons and it is important to ascertain exactly why you wish to create a foundation before selecting a jurisdiction.
Selecting a jurisdiction
Setting up an offshore foundation can be a fairly straightforward task that is further facilitated by obtaining the assistance of a professional consultancy firm. A consultancy firm can also assist you in selecting a jurisdiction that meets your personal and financial needs. Choosing the most suitable jurisdiction for the formation of your foundation is one of the most crucial stages of the foundation formation process. The eventual jurisdiction selected will influence how the foundation is created, as well as the structure, management and administration of the foundation.
Setting up an offshore foundation first requires the selection of a jurisdiction. This can be achieved by establishing what you wish to gain from the formation of your foundation. For example some individuals wish to set up a foundation for ultimate tax planning purposes. Many international locations, such as Panama, offer excellent tax planning environments, including complete exemption from all taxes, including income tax, real estate tax and wealth tax, amongst others.
However if you wish to set up an offshore foundation for ultimate flexibility and advanced legislation then it is worthwhile researching a number of other jurisdictions. Foundations in Liechtenstein for example operate under the Liechtenstein law, which is highly favorable for the versatility it offers whilst providing ultimate protection of assets against creditor claims.
There are a number of advantages to creating an offshore foundation and these depend entirely on one’s specific intentions for creating the foundation. It is important to weigh up the advantages and disadvantages of forming a foundation in a number of jurisdictions prior to making a final decision.