For many reasons, Belize is an extremely attractive place to invest. One of them is that this country offers a wide range of investment opportunities. However, it is important to note that offshore asset structures can attract different groups of people. In this sense, one type of structure may be the perfect solution for one individual but may not meet the needs of another.
By analyzing in more detail the three best options for protecting offshore assets in Belize, you can get a better idea of which are the most appropriate depending on your case and also know some of their requirements.
1. International trusts
Trusts are perhaps one of the most widely used asset protection structures in the world. These are established when a person who owns certain assets transfers them to a fiduciary. With this operation, the original owner no longer has financial or legal responsibility over the assets. On the contrary, it is the depositary that is responsible for managing them. The beneficiaries of the trust are third parties, groups or individuals, who will obtain dividends.
Although it is possible to establish an international trust in various global destinations, Belize is of special interest because its laws provide better protection for the assets deposited under this figure. An international trust established in Belize can be an effective way to protect your assets from confiscation.
In the unlikely event of an asset freeze or bankruptcy filing, your assets deposited in the fund do not qualify for a seizure; since they are not specifically his property. In other words, these assets can not be confiscated. This aspect can offer peace of mind for those who are vulnerable to lawsuits or other legal conflicts.
An international trust is also an attractive option for those who wish to start their estate planning. With the creation of an international trust in Belize, you can establish in detail, according to your intentions, who will inherit your assets in the coming years. Also, you can allocate certain assets for specific occasions or individuals, all of which can be maintained under privacy and confidentiality.
At the same time, it is valid to point out that the establishment of an international trust provides an additional fiscal benefit and even more when a trust of this type is created in Belize. By minimizing tax erosion, you can protect a greater portion of your assets, acquired through arduous years of work, and ensure that your loved ones have possible access to as much of your wealth as possible.
2. International trade companies
For those who own investments that need to be used, an International Business Company (IBC) in Belize can be a solid choice. As an effort to promote the participation of international corporations in Belize, the government established a program in which companies can join and qualify as an IBC.
To be qualified as an IBC, a company cannot benefit from any commercial activity in Belize. This means that you cannot directly offer goods or services to those who reside there. However, if your business operates anywhere else in the world, you can establish your headquarters in Belize and benefit from being an official IBC.
Among the many assets that can be stored in an IBC can include machinery, copyright, patents, intellectual property or international real estate. An IBC is recommended for those who make a profit and use their assets frequently. An IBC is less likely to be the right choice if its assets have little movement.
It could be said that the best justification for having an IBC is that its assets and the profits it obtains will not be taxed in Belize. This means that you can better protect your earnings and free them from taxation.
An International Business Company can also be an asset structure with a lot of privacy. Directors and board members can remain anonymous if they wish. In addition, IBCs are not required to disclose their financial records. The government must know where these records are kept and companies can store them anywhere in the world that is most convenient for their operations. In summary, having an IBC means enjoying more flexibility and freedom than can be found when operating businesses in other parts of the world.
3. Private placement life insurance
In order to start estate planning as efficiently as possible, private placement life insurance can be an excellent option. An offshore life insurance policy can protect your assets and at the same time prevent tax erosion. This type of insurance is an especially smart option if you currently have a number of investments that are making significant profits or dividends. Maintaining these types of investments without the benefit of life insurance coverage can mean that you are paying large annual sums for taxes, which is certainly not what an investor wants.
In Belize, insurance of this type works differently than a traditional life policy. Instead of paying fixed amounts monthly or annually, the insurance policy thrives thanks to its own investments that generate constant sources of income.
Another benefit of this type of structure is that it is possible to transfer assets to loved ones and dependents in a better way, without paying taxes. After hard work to save and accumulate wealth, you should not be penalized for owning it. With the protection of private placement life insurance, you can transfer the wealth to your heirs. This is possible because the assets within the policy are not held directly in your name. In the case of Belize, this is particularly true, since asset structures are not taxed as strongly as in other jurisdictions, such as North America.
Finally, it is worth noting that disposing of assets in a private placement life insurance policy does not necessarily mean that they are no longer available to you. Withdrawals with deferred taxes or loan policy can provide you with capital quickly, if necessary. When looking for this type of insurance, it is important to find a provider that meets international standards as well as those required by the Belize International Insurance Law, Chapter 269, revised edition in the year 2000.
The three types of structures mentioned in this article are good options for those who are ready to protect their assets and diversify their assets. Mild Offshore can support you in setting up your offshore bank account, as well as advise you throughout the process of acquiring the best offshore asset for you and your family.