Offshore companies, what are they good for? (Part II.)

Companies registered in the most significant offshore centres of the world are given a unique opportunity for global expansion under favourable circumstances. However, administrational and legal measures in a number of countries hinder such an expansion of economic role players.

Services related IP rights

Intellectual products, licences and franchise rights represent a larger and larger role within the wealth of private individuals or companies. By appropriately grouping the income from royalties, the profit can be transferred to areas with low taxes, thus significant amounts of money can be saved. As a consequence, the group can become significantly more profitable than without using such options. We will ensure the most efficient utilization of our clients’ asset elements and the optimization of tax savings emerging from their incomes related to such assets, including sales or other methods of utilization.

Real estate investments

Real estate investments made directly through foreign companies or local real estate managing companies can bring several advantages. In the case of real estate assets being used by the enterprise, the most important aspect is that the main activity of the enterprise which represents the higher risk and the real estate asset which is necessary to proceed with business and which represents a significant value can be separated. Ownership rights of real estates and land transferred to the appropriately selected trustee company provide tax advantages mostly when selling the real estate if the ownership rights of the real estate have been transferred to the trustee and the next buyer can purchase the real estate dealing company itself. The yields emerging from this deal can be realized under more favourable taxation conditions at the foreign company.

Financing services

Companies or groups often make investments from within or outside the group using their own accumulated assets. Temporary or long-term financing transactions can be executed in the form of lending or capital investment. In order to make sure that these activities are advantageous for the company from the aspect of taxation, the company with financing functions is recommended to be located in an environment where the income related to interests, dividends and royalties is treated in a favourable manner. For companies dealing with financing, it is inevitable to create an environment where companies or real estate can be acquired effectively and other investments can be made.

Ship registration

Registering ships and yachts is a complex and costly process in most countries, and many countries levy special taxes on the owners of such vehicles. Several international locations provide modern ship and yacht registration opportunities with low registration fees and exemption from taxes on incomes emerging from shipping and leasing activities. These advantages can be enhanced if these vehicles are owned by a company registered in a location which provides an environment with a favourable tax system.