Offshore Jurisdiction Comparison

Introduction - Here you can look at the jurisdictions and compare features and benefits. Our law firm caters to those seeking privacy and security and thus these are the things we evaluate. The idea is to avoid a jurisdiction with tax treaties and mutual legal assistance treaties. You may need to be mindful of judgment reciprocity, fraudulent conveyance and bank secrecy. It is easy to find a jurisdiction with a few of these things in place, but hard to find one with all of them in place. If just one of these factors is not correct, it can result in catastrophic financial consequences for you and your hard earned wealth. That is why we are in Guatemala. Then you must consider the ease of dealing with the banks regarding due diligence on account opening and regarding transactions incoming and outgoing. It is best to avoid any jurisdiction that is thought of as a tax haven or offshore privacy haven. Guatemala is the best choice today. Two years ago no, today yes. You want to be in what is considered to be an unlikely choice for an offshore privacy and tax haven. Switzerland was a prime example of a jurisdiction that many used because it was considered the place to be. People went there because others went there. Few actually understood the real situation until it was too late. Switzerland was an instance of low hanging fruit as is every other popular tax haven. Think about it. That is why we are in Guatemala and not in Panama or elsewhere. There are a number of large solid banks here, many with no ties to any USA or EU bank. Do feel free to call or Skype us to discuss your situation and how we could assist in arriving at an effective solution for you. This report was prepared November 2011.

Guatemala

• Anonymous Bearer Share Corporation Allowed – Yes and Owner can keep the Shares
• Owner of Corporation Name in Public Registry - No
• Tax Information Exchange Agreements – No
• Mutual Legal Assistance Treaties – No
• Double Taxation Agreements – No
• Judgment Reciprocity Possible – Rare, Extremely Difficult, Expensive, Time Consuming
• Fraudulent Conveyance – Rare, Extremely Difficult, Expensive, Time Consuming
• Bank Secrecy – Yes
• Percentage Fees on Bank Accounts - No
• Due Diligence for Bank Account – Just Passport Copy
• Bank Reference Letters Needed- No
• Lawyer Reference Letter Needed – No
• Bank Size – Billion Dollar Banks
• Online Banking – Yes in english and spanish.
• Bank Issues Visa, MasterCard, Debit Cards – Yes
• Multiple Currency Accounts – Yes
• Bank Insurance – There is Nominal Government Bank Insurance, means government watches banks
• Multiple Currency Accounts – Yes. Euros, USD and Local Currency
• Bank Scrutiny on Transfers – No set rules.
• Commercial Accounts Accepted – Yes
• Savings Accounts Accepted – Yes
• Capital Gains Tax – None
• Income Tax – Offshore derived income not taxed

Belize

• Anonymous Bearer Share Corporation Allowed – Yes
• Owner of Corporation Name in Public Registry - No
• Tax Information Exchange Agreements – Yes with 14 Nations. Ok for USA and Canada
• Mutual Legal Assistance Treaties – Yes, numerous including EU, USA, Canada
• Double Taxation Agreements – No
• Judgment Reciprocity Possible – Yes possible but not with additional Belize Trust
• Fraudulent Conveyance – Yes possible but not with additional Belize Trust
• Bank Secrecy – Yes
• Percentage Fees on Bank Accounts - No
• Due Diligence for Bank Account – Passport – notarized copy, utility bill- notarized, reference letter prof. or from bank
• Bank Reference Letters Needed – Generally no
• Lawyer Reference Letter Needed – Yes, always
• Bank Size – most banks are up to $150 million
• Online Banking – Yes in english
• Bank Issues Visa, MasterCard, Debit Cards – Yes
• Multiple Currency Accounts – Yes
• Bank Insurance – None
• Bank Scrutiny on Transfers – $15,000 or over will require due diligence explanations, documents, etc
• Commercial Accounts Accepted – Yes
• Savings Accounts Accepted – Yes
• Capital Gains Tax – None
• Income Tax – Offshore derived income not taxed

Nevis

• Anonymous Bearer Share Corporation Allowed – Yes
• Owner of Corporation Name in Public Registry – Nevis has no public registry
• Tax Information Exchange Agreements – Yes with 17 Nations.
• Mutual Legal Assistance Treaties – Yes, numerous including EU, USA, Canada
• Double Taxation Agreements – No
• Judgment Reciprocity Possible – Yes but our clients do not bank in Nevis
• Fraudulent Conveyance – Yes possible but our clients do not bank in Nevis
• Bank Secrecy – Yes
• Percentage Fees on Bank Accounts – Yes, % on bank wires. Too expensive for our clients
• Due Diligence for Bank Account – Passport, utility bill, notarized, bank reference
• Bank Reference Letters Needed - Yes
• Lawyer Reference Letter Needed – Yes
• Bank Size – most banks are up to $100 million
• Online Banking – Yes in english
• Bank Issues Visa, MasterCard, Debit Cards – Yes
• Multiple Currency Accounts – Yes
• Bank Insurance – None
• Bank Scrutiny on Transfers – Due Diligence is substantial
• Commercial Accounts Accepted – Yes
• Savings Accounts Accepted – Yes
• Capital Gains Tax – None
• Income Tax – Offshore derived income not taxed

Hong Kong

• Anonymous Bearer Share Corporation Allowed – Yes
• Owner of Corporation Name in Public Registry – Yes as owner and director to get Bank Account so there is no privacy anymore
• Tax Information Exchange Agreements – No
• Mutual Legal Assistance Treaties – Yes, numerous including EU, USA, Canada
• Double Taxation Agreements – Yes
• Judgment Reciprocity Possible – Yes
• Fraudulent Conveyance – Yes
• Bank Secrecy – Yes
• Percentage Fees on Bank Accounts - No
• Due Diligence for Bank Account – Passport, utility bill, notarized, reference letter prof. or from bank. Banks do not take investment accounts, only commercial entities and they exclude many categories of businesses.
• Bank Reference Letters Needed - Sometimes
• Lawyer Reference Letter Needed – Varies
• Bank Size – Trillion Dollar
• Online Banking – Yes in english
• Bank Issues Visa, MasterCard, Debit Cards – Yes
• Multiple Currency Accounts – Yes
• Bank Insurance – Some Insurance
• Bank Scrutiny on Transfers – Depends on relationship
• Commercial Accounts Accepted – Yes. Many categories of business excluded
• Savings Accounts Accepted – No
• Capital Gains Tax – None
• Income Tax – Offshore derived income not taxed but tax returns and audit needed each year

Andorra

• Anonymous Bearer Share Corporation Allowed – Yes
• Owner of Corporation Name in Public Registry - No
• Tax Information Exchange Agreements – Yes with 18 Nations.
• Mutual Legal Assistance Treaties – Yes, numerous including EU, USA, Canada
• Double Taxation Agreements – Yes
• Judgment Reciprocity Possible – Yes possible
• Fraudulent Conveyance – Yes possible
• Bank Secrecy – Yes
• Percentage Fees on Bank Accounts - No
• Due Diligence for Bank Account – Passport, utility bill, notarized, bank reference letter, personal visit required
• Bank Reference Letters Needed - Yes
• Lawyer Reference Letter Needed – Yes, usually
• Bank Size – most banks are up to $500 million
• Online Banking – Yes in english
• Bank Issues Visa, MasterCard, Debit Cards – Yes
• Multiple Currency Accounts – Yes
• Bank Insurance – None
• Bank Scrutiny on Transfers – Yes
• Commercial Accounts Accepted – No
• Savings Accounts Accepted – Yes
• Capital Gains Tax – None
• Income Tax – Offshore derived income not taxed

Panama

• Anonymous Bearer Share Corporation Allowed – Yes
• Owner of Corporation Name in Public Registry – No but is expected to change soon
• Tax Information Exchange Agreements – Yes no good for USA
• Mutual Legal Assistance Treaties – Yes, numerous including EU, USA, Canada
• Double Taxation Agreements – Yes
• Judgment Reciprocity Possible – Yes possible
• Fraudulent Conveyance – Yes possible
• Bank Secrecy – Yes
• Percentage Fees on Bank Accounts - No
• Due Diligence for Bank Account – Passport, utility bill, notarized, two bank reference letters, personal visit. USA persons have very hard time getting accounts, if at all.
• Bank Reference Letters Needed - Yes
• Lawyer Reference Letter Needed – Yes, usually
• Bank Size – most banks are up to $500 million
• Online Banking – Yes in english
• Bank Issues Visa, MasterCard, Debit Cards – Yes
• Multiple Currency Accounts – No, mostly just USD Accounts, some banks may have EUROS
• Bank Insurance – None
• Bank Scrutiny on Transfers – Extreme due diligence on transfers
• Commercial Accounts Accepted – Yes with some businesses excluded
• Savings Accounts Accepted – Yes
• Capital Gains Tax – None
• Income Tax – Offshore derived income not taxed

West Indies Caribbean Bank

• Anonymous Bearer Share Corporation Allowed – Yes
• Owner of Corporation Name in Public Registry - No
• Tax Information Exchange Agreements – Yes, 17
• Mutual Legal Assistance Treaties – Yes, numerous including EU, USA, Canada
• Double Taxation Agreements – No
• Judgment Reciprocity Possible – Yes possible
• Fraudulent Conveyance – Yes possible
• Bank Secrecy – Yes
• Percentage Fees on Bank Accounts - No
• Due Diligence for Bank Account – Passport, utility bill, notarized, prof or bank reference letter
• Bank Reference Letters Needed - Maybe
• Lawyer Reference Letter Needed – Yes, usually
• Bank Size – most banks are up to $100 million
• Online Banking – Yes in english
• Bank Issues Visa, MasterCard, Debit Cards – Yes
• Multiple Currency Accounts – Yes
• Bank Insurance – None
• Bank Scrutiny on Transfers – Extreme due diligence on transfers of $5,000 or more
• Commercial Accounts Accepted – Yes
• Savings Accounts Accepted – Yes
• Capital Gains Tax – None
• Income Tax – Offshore derived income not taxed

Singapore

• Anonymous Bearer Share Corporation Allowed – Yes but bank will ask for your name be in registry thus no privacy
• Owner of Corporation Name in Public Registry - Yes
• Tax Information Exchange Agreements – Yes numerous
• Mutual Legal Assistance Treaties – Yes, numerous including EU, USA, Canada
• Double Taxation Agreements – Yes
• Judgment Reciprocity Possible – Yes possible
• Fraudulent Conveyance – Yes possible
• Bank Secrecy – Yes
• Percentage Fees on Bank Accounts - No
• Due Diligence for Bank Account – Passport, utility bill, notarized, bank reference letter
• Bank Reference Letters Needed - Yes
• Lawyer Reference Letter Needed – Maybe
• Bank Size – Multi Billion Dollar Banks
• Online Banking – Yes in english
• Bank Issues Visa, MasterCard, Debit Cards – Yes
• Multiple Currency Accounts – Yes
• Bank Insurance – Yes, S$50,000, about $12,000 USD.
• Bank Scrutiny on Transfers – Extreme due diligence on transfers
• Commercial Accounts Accepted – Yes but some businesses excluded
• Savings Accounts Accepted – Maybe, varies
• Capital Gains Tax – Yes, they have a complex tax system
• Income Tax – yes they have a complex tax system

Uruguay

• Anonymous Bearer Share Corporation Allowed – Yes but bank may want to hold them
• Owner of Corporation Name in Public Registry – Usually required for bank
• Tax Information Exchange Agreements – Yes not many
• Mutual Legal Assistance Treaties – Yes, numerous including EU, USA, Canada
• Double Taxation Agreements – Yes
• Judgment Reciprocity Possible – Yes possible
• Fraudulent Conveyance – Yes possible
• Bank Secrecy – Yes
• Percentage Fees on Bank Accounts - No
• Due Diligence for Bank Account – Passport, utility bill, notarized, bank reference letter
• Bank Reference Letters Needed - Yes
• Lawyer Reference Letter Needed – Yes, usually
• Bank Size – most banks are up to $300 million
• Online Banking – Yes in english
• Bank Issues Visa, MasterCard, Debit Cards – Yes
• Multiple Currency Accounts – Yes
• Bank Insurance – None
• Bank Scrutiny on Transfers – Extreme due diligence on transfers
• Commercial Accounts Accepted – Yes
• Savings Accounts Accepted – Yes
• Capital Gains Tax – Yes
• Income Tax – Offshore derived income not taxed unless you are a resident or citizen

Europe - This will apply to the various countries

• Anonymous Bearer Share Corporation Allowed – Yes but with restrictions like bank holding shares
• Owner of Corporation Name in Public Registry – Usually required
• Tax Information Exchange Agreements – Yes, with almost every nation
• Mutual Legal Assistance Treaties – Yes, numerous including EU, USA, Canada
• Double Taxation Agreements – Common
• Judgment Reciprocity Possible – Yes possible
• Fraudulent Conveyance – Yes possible
• Bank Secrecy – Yes but very limited to the point of being not real secrecy
• Percentage Fees on Bank Accounts - Sometimes
• Due Diligence for Bank Account – Passport, utility bill, notarized, bank reference letter
• Bank Reference Letters Needed - Yes
• Lawyer Reference Letter Needed – Yes, usually
• Bank Size – Varies greatly
• Online Banking – Yes might not be in English, varies
• Bank Issues Visa, MasterCard, Debit Cards – Yes
• Multiple Currency Accounts – Yes
• Bank Insurance – Usually none or a little, varies
• Bank Scrutiny on Transfers – Extreme due diligence on transfers
• Commercial Accounts Accepted – Yes
• Savings Accounts Accepted – Yes
• Capital Gains Tax – Usually
• Income Tax – Expect to be taxed a lot

Caribbean – This applies to the Caribbean Islands in General

• Anonymous Bearer Share Corporation Allowed – Yes but shares required to be with registered agent
• Owner of Corporation Name in Public Registry – Varies, bank may require this
• Tax Information Exchange Agreements – Yes
• Mutual Legal Assistance Treaties – Yes, numerous including EU, USA, Canada
• Double Taxation Agreements – Some
• Judgment Reciprocity Possible – Yes possible
• Fraudulent Conveyance – Yes possible
• Bank Secrecy – Yes
• Percentage Fees on Bank Accounts - No
• Due Diligence for Bank Account – Passport, utility bill, notarized, prof. or bank reference letter
• Bank Reference Letters Needed - Yes
• Lawyer Reference Letter Needed – Yes, usually
• Bank Size – most banks are up to $100 million
• Online Banking – Yes in english
• Bank Issues Visa, MasterCard, Debit Cards – Yes
• Multiple Currency Accounts – Yes
• Bank Insurance – No
• Bank Scrutiny on Transfers – Extreme due diligence on transfers
• Commercial Accounts Accepted – Yes
• Savings Accounts Accepted – Yes
• Capital Gains Tax – None
• Income Tax – Offshore derived income not taxed