By Stephen Harrison MBA presented on a meetup for CODINO - the Community of Digital Nomads Barcelona - http://www.meetup.com/codino/ CODINO is a network of location independent entrepreneurs and freelancers for meetups, coworking, coliving, and mastermindgroups. Join us on http://www.meetup.com/codino/

1. Offshore 101
How To Diversify Your Life,
Protect Your Assets, And Live Tax-Free
By Stephen Harrison MBA

2. Topics of this module
 What IS “Offshore”?
 Benefits
 This offshore haven
 Cost
 How to manage your offshore business
 Legal
 What’s involved?
 Where do I go from here?

3. My experience

5. I have...
•lived and worked in 7 countries on 5 continents
•traveled to more than 70 countries
•bought and sold real estate in 5 countries
•started business ventures in 7 countries
•opened multiple foreign bank accounts
•acquired a second passport
•and more...
Again, what works for me may not work exactly for you. But I
wanted to convey to you that I am well qualified to speak to
you on offshore diversification.

6. What is “Offshore”?
Definition of 'Offshore'
Located or based outside of one's national boundaries.
The term offshore is used to describe foreign banks,
corporations, investments and deposits. A company
may legitimately move offshore for the purpose of tax
avoidance or to enjoy relaxed regulations.

7. WHY OFFSHORE?
Today it makes urgent sense to consider options
and opportunities for going offshore:
• To gain shelter from the potential crash of the dollar and the euro...
• To escape the never-ending financial crises across the globe...
• To distance yourself from rising taxes and increasing regulations...
• To regain your right to privacy and independence...
• To diversify your investments...and your lifestyle...

8. Why Offshore?
What’s up with Spain?

9. •Time to register: 30 days minimum (Forget August).
•Corporation Tax: 30%, (20% for profits up to 300,000 Euros, 25% for
profits above this)paid quarterly.
•Capital Requirement :The minimum capital required is €3006. This
money is put directly into the new bank account for the company.
•Cost: About €1,200
•Additional Requirements: See next slide:

10. 1. Obtain a certification of uniqueness of proposed company name
(certificación negativa de la denominación social) from the Mercantile
Register
2. Open a bank account for the company; deposit capital in the bank and
obtain a deposit certificate
3. Grant a public deed of incorporation before a public notary
4. Submit Declaración Censal de Inicio de Actividad and obtain the Tax
Identification Number (Numero de Identificación Fiscal, NIF) from the
Delegación Provincial de la Agencia Estatal de la Administración
Tributaria
5. Obtain a tax declaration of exemption from the Dirección General de
Tributos - Consejería Hacienda Comunidad
6. File the public deed of incorporation of the company for its registration
with the Mercantile Registry.
7. Legalize company books
8. Submit a notification of start of operations (declaración responsable) to
a private agency authorized by the municipality (ECLU)
9. File for social security and affiliate all workers with the local general
treasury of social security (Tesorería General de la Seguridad Social)

11. United Kingdom Company set-up
Set-up time: 48hours
Cost: €25
Capital Requirement: €0
Corporation Tax: 20% (2014 for profits less than €365,000)
If your company or organisation has taxable profits of up to £1.5 million, you must
pay your Corporation Tax nine months and one day after the end of your
Corporation Tax accounting period. For example, if your company's accounting
period ends on 31 May, your Corporation Tax payment is due on or before 1 March
the following year.

12. Foreign Investors
You do not need to be a UK citizen or a UK resident to incorporate
You do not need to visit the UK to incorporate the company
Only one person is required to incorporate a new Ltd company
A UK company can be incorporated even though it does not trade in the UK
Company Shareholders and Directors
A private company only requires one director and one shareholder who may be an
individual or corporate body.
Private Limited Company - Ltd
Owned by shareholders who, in the event of the business failing, are protected by
the limited liability
Personal assets of directors and shareholders cannot be used to pay off company
debts
A limited company will continue to trade irrespectively of changes in directors,
secretary, management and or ownership
The company may enter into legal contracts and own property

13. COSTS
Company set up: €25 including Company house registration
(http://www.companiesmadesimple.com/)
Virtual Office London: €25 per month with mailforwarding
(http://www.hoxtonmix.com/virtual-office-london-old-street/)
Call Forwarding: €10 per month with an 020 London number
Bank Account: No charge for set-up. Monthly fees vary
(€25/month typical)
Lloyds, RBS recommended- usually offer free banking for 1 year.

14. Requirements:
•Photo ID (Passport or DNI)
•Proof of address
•Business plan with Cash flow forecast
Director Requirements
Every company must have at least 1 director.
The director can also be the sole shareholder which means you can incorporate a
single person company.
All directors must be 16 years or older.
Directors do not have to be UK residents (they can reside anywhere in the world).
Registered Office Requirements
Every company must have a registered office in the UK.
It must be a physical address at which official documents can be served.
Cannot be a PO Box.
Is displayed on the public record.

15. PANAMÁ
This Little Offshore Haven Deserves Your Attention More Than Ever Before

16. Population
The population of Panama is approximately 3.4 million, about 52% of which reside
in Panama City, consisting of mainly the Mestizos (70%) and a mix of West
Indians, Caucasians and Indians. The dominant religion is Roman Catholicism.
Language
Spanish is the official and spoken language. English is also spoken widely in urban
areas and is used daily in commerce and international trade.
Currency
United States Dollar.
Exchange Control
None.
Type of Law
Based on Spanish Civil Law with many Common Law influences, particularly
regarding Company Law.

17. PANAMA’S ECONOMY
Panama’s GDP is US$30 billion. It’s per-capital GDP is US$14,000. It’s the second-
richest country in Latin America (after Chile), and its clear and stated agenda is to
double those figures in the next 10 years.
It’s on track to do that. Right now, Panama’s is the fastest-growing economy in the
Americas. The Panamanian economy is, simply, in a different league than that of
any other country in this part of the world.
Indeed, this country’s economy has grown every one of the past dozen years,
including in 2008 and 2009.
Apparently someone forgot to tell Panama about the
world’s financial crisis

18. The cornerstone of Panama’s ongoing and
enviable growth is the Panama Canal. For the
past 14 years, the Panamanians have run it
successfully, impressively, profitably. Within
the next two years, they’ll complete the
Canal expansion that they’ve been hard at
work engineering for the past six years. This
will mean more ships, bigger ships, more
crossings, bigger revenues.
And it’s not only Canal revenues that are
driving Panama’s expanding economy. The
ripple effect of the Canal is, like the Canal
itself, big business. And, in addition to the
Canal, Panama is also enjoying the proceeds
from big and growing financial services and
transportation industries.

19. Meantime, money is pouring into this
country from all over...from elsewhere in
the region, from North America, from
Europe, from Russia, from China, from
the Middle East...
Foreign direct investment inflows into
this country reached US$1.7 billion in
2009 and US$3 billion in 2011, a sizable
bet by foreign companies on the future of
this small country. Big companies from
around the world taking advantage of
Panama's open-door policies and
incentive programs include Maersk Line,
Halliburton, P&G, Dell, Caterpillar,
Sinpopec...a total of 68 so far.

20. Thanks to all this growth,
the country's
unemployment rate has
dropped significantly, from
between 8% and 12%
(depending on which set of
numbers you use) to around
4% today.
The three leading U.S.-
based credit rating agencies
all have awarded Panama
investment grade status,
making it part of a select
group of such countries in
the region.

21. Why, specifically, as a foreign
retiree, expat, investor, or
entrepreneur, should you care
about a country's economy?
Because a country's economy
directly impacts:

22. •Infrastructure. The infrastructure in Panama (not only
Panama City but across the country) is very good,
certainly relative to much of Latin America. Reliable
internet, phone, water, stable electricity... you can take
these things for granted throughout this country. Panama
can afford to keep these utilities up...
•Safety and job creation. A strong economy means low
unemployment. Low unemployment means less crime...
•Future real estate values...
•Future foreign investment...

23. •Right now, Panama is among the top 10
worldwide for:
Foreign direct investment
•Mobile phone subscriptions
•Quality of air transportation
•Quality of port infrastructure
•Soundness of banking system and accessibility of
financial services

26. MAJOR ADVANTAGES OF PANAMA COMPANY:
•Exemption from all local taxes, when income received outside of
Panama
•Inexpensive annual support
•No requirements of a minimum paid up capital
•Information about shareholders and beneficial owners is not filed with
the Public Registry Office and not available to the public
•Any individual and legal entity may become a shareholder
•No foreign exchange control.

27. Panama Company, ideal for:
•Businessmen
•Commerce over the Internet
•Consultants / Counsellors
•International business
•Holding intellectual property rights
•For the custody of movable and immovable property
•For inheritance purposes
•Stockbroker / forex

28. Among the most important features of the Panamanian offshore
corporations:
•Quick registration in 24 to 48 hours.
•The Panamanian offshore corporations can be registered notwithstanding the
nationality of its directors or shareholders.
•The income produced by a Panamanian offshore corporations outside the territory
of the Republic of Panama is exempt of paying Income Tax in Panama.
•The capital of the company does not have to be paid partially or fully at the moment
of incorporation.
•There is no obligation to file annual reports, financial statements or sworn income
declarations, always that the company does not generate Panamanian sourced
income.
•Legal entities of any country can be appointed as directors, officer or shareholder.
•There is no obligation to undertake annual meetings of the Board of Directors or
Shareholders.
•The directors and shareholders can meet in person, by Proxy, phone or by any other
electronic mean.

29. •Three (3) directors are required, either physical persons or legal entities of
any nationality.
•The officers (usually a President, a Secretary and a Treasurer) not
necessarily have to be directors and one person can occupy one or more or all
offices. The officers can be either physical persons or legal entities.
•The shares can be issued in nominative or bearer form. In any case, the
name of the shareholder is not required to be registered at the Public
Registry, so anonymity is guaranteed.
•The corporate books can be kept in any part of the world and can be
managed by electronic files or program.
•A Panamanian offshore corporations can do transactions and own assets in
any part of the world, without having the obligation to maintain assets in the
Republic of Panama.
•The Panamanian offshore corporations can undertake any type of legal
business activity in any part of the world.
•The use of the Apostle is permitted.

30. Among the most important uses of the Panamanian offshore
corporations:
•Setting up trading and brokerage accounts for investing purposes.
•As a holding entity for shares, bonds, bank accounts, term deposits, investment
projects or any other financial or commercial title.
•Owner of shares in other companies, be them Panamanian or foreign.
•Owner of unmovable property, such as apartments, lots, houses or any other asset,
be them movable or unmovable.
•Manager or promoter of international commercial transactions.
•International lease of aircraft, vehicles, machinery, vessels and others.
•Instrument to receive and deliver loans in cash or commissions for products and
services.
•Marketing and promotion of products and services.
•Other financial or commercial activities.

31. Offshore Structure

32. Moving Your
Business To A
Low-Tax Or No-Tax
Locale Is Just Good
Sense

33. Offshore Structure
Foundation
International Business
Corporation
Belize
Panamá
Beneficiary
Administrator
President
Directors

34. COSTS
Incorporation
The formation of a Panama company takes from 3 to 5 working days and it costs from
about €500.00.
Annual Maintenance
There is an annual franchise tax levied by the government to maintain a company in
good standing, amounting to US$250.00
Annual fees of the Statutory Resident Agent mentioned previously are US$150.00.
Annual fees for providing nominee directors and/or officers are usually US$200.00
each.
Therefore, annual maintenance charges for a Panama corporation, may range
between €290.00 and €725.00, depending on the number of nominee directors
and/or officers.
A complete offshore structure (Trust, IBC etc) will cost more.

35. BANKING
select banks that are secure; provide excellent services, as well as numerous banking
facilities (e-banking, credit cards, letters of credit etc.).
In addition, other important characteristics were studied before selecting a bank,
such as :
•Political and economic stability of the country where the bank is located
•Bank confidentiality to preserve the privacy of our customers
•Financial guarantees of the bank to avoid the risk of bankruptcy
•Excellent reputation of the institution
•Wide range of financial products offered.

36. What banking facilities are available ?
As a general rule the following facilities are available from the financial
establishments :
•Multi currency accounts
•E banking
•Trading in currency, shares and other titles
•Interest bearing accounts
•Credit card and debit card
•Letter of Credit
We point out that it is difficult for offshore companies to establish credit lines, loans
or other cash facilities unless assets are deposited with a bank to serve as collateral.

37. And later…………….
The basic Spanish Succession Tax (SST) is in bands that start at 7.65
percent, on amounts over €7,993, increasing in stages to 34 percent for
amounts over €797,555 per beneficiary.

38. What if I told you that you could put your investments on
autopilot, virtually eliminate risk, minimize or even eliminate
your tax burden (legally), grow your wealth... and sleep like a
baby?
Sound too good to be true? After two decades at this, I can
tell you with certainty that it's not.
You see, there's a secret to legally taking advantage of the
system.
What's more, it's simpler and easier than you'd think

39. •Don't limit your investment options to Wall Street's
offerings...
•Stop the government from taking more of your hard-
earned cash...
•Eliminate the risks of having all of your assets in one
country, in one currency, in one legal system...
•Take control of your investments, your assets, and your
future...
•Expanding your horizons abroad allows you the ultimate
in personal and financial freedom and security...

40. What other jurisdictions should you be looking at?
Here's a short list to help focus your thinking in the meantime:
Banking: Belize, Uruguay, Singapore
Residency: Uruguay, Ireland, Malaysia
Citizenship Through Residency: Ireland, Uruguay, Dominican Republic
Citizenship Through Ancestry: Dictated by where your family is from
Economic Citizenship: Dominica, St. Kitts
Assets/Investment: My focus, of course, is real estate. In this context, I
recommend Colombia and Panama for yield and Uruguay, Colombia, and
Brazil for farmland
Asset Protection: Belize, Cook Islands
Incorporating Your Business: Singapore, Nevis

41. Where do I go from here?
Investigate online
Decide if going offshore is right for you
Speak to an expert (like Stephen  )
ceo@gintsa.com
www.gintsa.com (It’s in Panamá)

42. Put your investments on autopilot,
virtually eliminate risk, minimize or even
eliminate your tax burden (legally),
grow your wealth...and sleep like a baby...
The secret is diversification...
but not in the way that you might think...
Here's why you need to go offshore now...
and how to do it...

43. If you think that a half-hearted attempt at
diversification is going to cut it when it all hits the
fan then you're going to be sorely disappointed.
These are unbelievably volatile times—financially,
politically, and otherwise. Economies are collapsing.
Foreign nations are grabbing power. Governments
are printing money with reckless abandon.
Once a sure bet, the United States is poised on the
brink of an imminent meltdown. And the rest of the
Western world is in the same boat. No single
country is a safe haven.

44. Diversification—as it's touted elsewhere—won't
prepare you for what's about to come. Traditional
diversification strategies are just the tip of the
iceberg. There's a lot more that you need to be
doing to safeguard your family's future.
Yes, there's an incredible amount of instability and
uncertainty. But here's one thing you can be
certain about...

45. There's still time to hedge against:
inflation,
litigious thieves,
corrupt and prying governments,
total financial meltdown
and more
—by properly diversifying your life…and truly going
international.
Here's why...

46. The Diversification Myth
America is no longer the "land of the free and the
home of the brave." It's become the land of tax-
and-spend politicians...and the home of the
meek. Politicians are ruining the country and the
citizens are too afraid—or too ignorant—to do
much of anything about it.
The American government is running out of
money. Fast. It has to borrow money—every
month—just to service its debt. Your family
couldn't survive long doing that. And neither can
the U.S. government.

47. I'm afraid the money—and the power—are leaving the United States
swiftly—and moving East.
So if your idea of diversifying is to "mix up" your investments inside
the United States then it's time you rethink your strategy. That's not
really diversification at all...even if that's what your financial planner
would have you believe.
Throughout history, failed governments have turned inward to its
people when looking for money to continue feeding the bureaucracy. It
doesn’t take much creativity to simply seize some or all of the assets
of its citizens.
And I am not talking about Rome. You only have to look to Cyprus in
2012-2013 to see a very real example of a government stealing its
people’s money.
Think it can't happen here?

48. It already is.
At the end of January 2014, Obama announced a plan designed
to help you. The plan—called MyRA—would allow first-time savers to
build their savings inside Treasury Bonds. In other words—give your
retirement savings to the government and they will look after it for
you.
Incidentally, the U.S. debt is sitting around $17 trillion while the
retirement savings of American citizens is around $21 trillion. There's
no coincidence that Obama has his eye on your retirement fund.
Any thinking person can see that MyRA is a terrible idea. Nobody in
their right mind should entrust their retirement to an organization that
is on the precipice of bankruptcy—by their own doing.
It's a clear signal that the United States is taking a run for your money.
It's not like Cyprus—yet—but I believe it will be.

49. Consider...
•It now costs the U.S. government more to make payments on
its debt then the revenue it brings in through taxes.
•Russia and China have virtually abandoned the U.S. dollar,
preferring to do trade in local currencies instead. For example,
they recently cut a $400 billion deal to supply China with
natural gas. The contract will be paid in Chinese Renminbi, not
the dollar.
•Germany (the world's fourth largest GDP) is now connected
to China via one of the world's longest railways. The move—
called the New Silk Road—connects trade between Europe and
China.

50. And what you've been taught about diversification is not going to
help you. Not even a little.
•What good is a diversified mutual fund portfolio going to do for you
if the government takes steals it from you—in the name of
Patriotism?
•What good is owning real estate here if it’s no longer worth
anything?
•
•What good is your passport when things really go sideways and you
want to leave…but aren’t allowed?

51. The solution is simple...
Truly go international. Get as much of your money—and your life—out
of the United States as you can—and put it in places around the world
that make sense.
You don’t have to leave your country if you don’t want to. But you
need to be ready when the time comes...

52. Secret Global Diversification Strategies
For Turbulent Times
"...we have a system where we can
allocate capital without tax consequences.
We can move money as the text books say
to where it can be usefully deployed..."
~ Warren Buffett

53. I've moved my money—strategically—in various places around the
world. If the American dollar collapses, some of my investments
might suffer temporary setbacks, but nothing permanent. Most will
be completely unaffected.
The good news is...
You can do the same. And as exotic as go international sounds, it's a
lot simpler than you think. This is something you can do—starting
today—no matter what your current financial situation is.
In fact, it's easier to do if you don't have a lot of investments
currently. But if you are invested heavily, it's all the more urgent you
get started now—before it's too late.
And, it's not just your investments either. There are advantages to be
had in setting up residencies (even citizenships), bank accounts, and
more in various other countries around the world.
Here's just a small sampling of what you can do...

54. 1.Invest in foreign currencies.
While the U.S. dollar is being debased by the government
printing money at will, other countries' currencies are actually
appreciating at 5% to 7% or more. Some of these currencies
are pegged to the American dollar—so you can get the benefits
of any strengthening of the dollar—but they can be unpegged
at anytime, so when the dollar tanks, it doesn't drive them
downward. All reward, no risk.

55. 2. Open a foreign bank account.
Remember how Cyprus closed the banks so they could
effectively steal the money of their citizens? It can happen in
the United States too. But if you choose a stable, private
jurisdiction to set up a bank account, then your money will be
safe when the U.S. government comes for it.

56. 3. Invest in productive foreign real estate.
If the American government comes for your money
they will be in for a surprise. The government is not
able to compel you to sell your piece of land in Chile
(for example). So buying foreign real estate is a great
way to protect your money. But if you also buy real
estate that's productive (perhaps a farm) then there
are other advantages—not the least of which is having
somewhere to go (and something to eat) in the event
of some domestic catastrophe.

57. 4. Invest in offshore variable annuities.
If you do so in the right jurisdictions, then you'll have a safe
stream of income for your future—or your family’s future. And
you'll grow that nest-egg tax deferred.
5. Start a business offshore. Depending on your situation, this could provide
huge legal and tax advantages.

58. The bottom line is that offshore investing offers you
tax advantages, legal protection from frivolous
lawsuits and privacy and protection from desperate
governments looking for quick, easy cash.
Again, this is just a small sampling of what you can
do—and why you should consider it. Everybody is
different so I can't give you an exact step-by-step
blueprint here.
But you should know...these strategies sound exotic
but they are much easier to do than you think—
especially if you get the right advice upfront.