Inheritance Tax Protection - Where individuals owns assets - such as property - in a country other than the one they reside in, those assets may be protected against inheritance tax and higher rates of taxation if they are held through an offshore investment company.

Investment Companies - Offshore corporations are used to hold investments in property, stocks and shares, commodities and other assets. The offshore company may provide anonymity and tax savings. Funds accumulated can be invested or deposited throughout the world, although the funds may be subject to the tax regimes of the countries in which the investments are located. There are countries with tax free bonds or bank deposits where interest is paid gross.

Take Advantage of Tax Treaties- The use of companies incorporated in certain jurisdictions may be of benefit where tax treaties exist between the offshore jurisdiction and the country in which the taxpayer resides. Such treaties can be found in offshore countries such as Mauritius, Barbados and Cyprus.

Royalties/Patent/Copyright Holding Companies - Some offshore companies are used to purchase or receive a copyright, patent, trademark or know-how so that royalties may be accumulated in the tax haven. In some circumstances the royalties may be subject to withholding tax at source, however, the interposing of a second company in another jurisdiction may reduce the rate of tax withheld.

Shipping Companies - Ships or yachts may be owned by an offshore company and registered in an offshore jurisdiction which can prove a cheaper and more tax efficient method of ownership.

Overseas Property - Many of the difficulties and expenses associated with investment in overseas property, such as holiday villas, may be avoided through the use of an offshore company to hold the title of the property. Sales of the property at a future date can be dealt with quickly and easily by the sale of the company shares to the purchaser. This also saves legal fees, overseas transfer and value added taxes levied by certain foreign countries. It can also be used to successfully avoid capital gains and inheritance taxes.

Please note: tax benefits vary considerably from country to country. IFG Trust does not offer legal or financial advice. Please consult a local tax advisor for specific information on offshore tax benefits as they apply to your country's tax legislation.