Redomiciliation

Stop offshore – Migrate to EU

Offshore jurisdictions could turn out  to be problematic when tax is concerned. Companies with either passive or active income can be taxed in the country where the Director or Shareholder is resident, as the management and control of the company can be deemed not being within the jurisdiction in which the company has been incorporated. The notions of Corporate veil and Tax Residence do not exist in Paper companies in Panama, Seychelles, Marshall Islands, BVI, Liberia and other famous offshore destinations.
There are other reasons to stop offshore.

• “Panama Papers” is going to trigger the disclosure and transparency of the structures of offshore companies in the future.
•  The Common Reporting Standard (CRS) which is going to be fully implemented in 2017 and 2018 is another threat for offshore vehicles.
• By 2020 all financial institutions around the globe will be fully reporting all income and assets to the country where the shareholder is resident.

Still looking for more evidence:

• Moving assets from an existing offshore company to an individual or another onshore company could give rise to  tax events. Re-domiciliation is always the best option in order to avoid bad practices.
• When moving onshore you will be liable to maintain proper accounting records, issue financial statements and record transactions, which will eventually lead to a better management of the company.
• At the very first stage of the re-domiciliation process you will be able to determine the capital structure of the company, disregarding company history.

Quick Guide

Not all EU countries are re-domiciliation friendly so the options are limited. Our team of experts have worked in several EU countries, so we can assist you with any option.
From a tax perspective, choosing a destination could be complicated, but this is something that we will always consider in our proposal.

We are always investigating:

• The type of assets (real estate, cash, stocks, bonds, intellectual property, art etc.) that the company holds
• Prospective taxation in the country of destination
• Ease of administration
• Any restrictive financial regulations
• Double tax treaty with the country of residence of the shareholder
• Where the effective management will take place.
  

We can undertake the redomicialiation process for companies in EU from the following jurisdictions:
British Virgin Islands, St.Lucia, St.Vincent and the Grenadines, St.Kitts and Nevis, Andorra, Antigua and Barbuda, Vanuatu, Guatemala, Grenada, Lebanon, Liberia, Liechtenstein, Malaysia, Mauritius, Monaco, Barbados, The Bahamas, Bahrain, Brunei, Nauru, The Cook Islands, Marshall Islands, Niue, Dominica, Panama, US Virgin Islands, FYROM, Samoa, Seychelles, Singapore, Philippines and Hong−Kong.

Process

1.    Running compliance check on the structure and the assets
2.    Qualifying the country of redomiciliation
3.    Arranging to obtain the required legal documents from the existing offshore agent
4.    Registering the entity in the destination country
5.    Reviewing and recording  opening balances

Depending on the jurisdiction the process could take from 1 to 3 months.

 

Contact us at redomiciliation (at) taxexperts (.) eu and one of our experts will get back to you shortly.