MAIN REASONS TO HAVE AN INTERNATIONAL STRUCTURE
- Consolidation: Having an international structure allows you to consolidate your assets abroad, and facilitates the fulfillment of duties such as annual income tax declaration and DCBE.
- Asset Protection: It can be an excellent way to protect your assets and preserve your equity.
- Succession planning: Facilitates the transfer of assets to successors.
- Tax planning: a correct structuring allows the deferral of investment results, postponing the payment of income tax in Brazil on earnings abroad.
Taxation abroad: to avoid the possibility of inheritance tax in several countries, which is levied when the individual investor dies. A company protects the family from overseas inheritance tax.
WHAT TO TAKE INTO CONSIDERATION WHEN CHOOSING A JURISDICTION?
It is important to keep clearly in mind what your objective is and what are your priorities when choosing the jurisdiction that best suits you.
Taxes: Some jurisdictions have lower tax rates than others, or are exempt in nature.
Confidentiality: Some jurisdictions have stricter privacy and data protection laws, which can be important in keeping sensitive information out of the public eye.
Obligations of companies. The more mandatory declarations and reports, the greater the cost of ensuring the company remains in compliance.
Credibility and reputation: Some jurisdictions have a more positive reputation than others, which can be important for opening bank accounts.
WHAT ARE THE MOST USED LEGAL STRUCTURES?
Some countries offer several types of partnership: corporations (or similar), ‘limited liability companies’ or ‘partnerships’. The type of partnership may allow for partnership agreements, or allow for succession planning if you wish.
Investment funds: overseas investment funds are subject to local regulation in terms of licensing, nature of providers and managers, and local substance. It brings together the resources of several people, so that they can be applied together in the financial and capital markets. They are considered as financial institutions, so they must comply with anti-money laundering requirements, and deliver different reports annually.
Trusts and Foundations are used in conjunction with companies to provide more elaborate estate planning.
Please contact us for information on other jurisdictions with costs and legislation in line with your or your customers’ interests.
