Offshore investment funds

ryanrowedotcom says on Feb 14, 2006, 16:22:

offshore banking can you clarify - you want to place your money in Panama or some other Latin country? are you an American citizen? I don't know the name of any funds, but I know a little bit about this topic..

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bufalo says on Feb 14, 2006, 18:38:

I know very little, but try Ascot Advisory, I get a newsletter from them everymonth about stuff like this and they don't sound as shady as Escapeartist. com

"If you don't like it - lump it, take it down the road and dump it." - Archie Bunker played by Carroll O'Connor

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latinlife says on Feb 14, 2006, 19:21:

More info-ryan..... Non- us........cornish but we have been taken over by the english for a little time( 1400 years).

I am looking for non euro land offshore juristriction(sp) and Panama is a possibility because I travel to Panama before going to Colombia and also Nicaragua where I sometimes work.

Thales is the name of a panamamian brokerage ,anyone have any dealings with them?

I am not an expert but with u.k wealth taxes on the rise and the advantage to be able to deal in hedge funds/alternative markets this seems like a intresting venture .
This is solely for capital growth with a view to finance long term stay in central america.

Thanks for your time.

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Coqueton says on Feb 14, 2006, 21:17:

Just be careful as many countires have been forced to sign tax treaties, thanks to the USA, EU and OECD. Also there is backup withholding on stock ownership starting in 1999 unless you sign a W-8 for American Stock Exchanges. If you have a sizeable sum, then a resident company in a low tax jurisdiction may be right for you. You may wish to travel and interview a few law firms in each jurisdiction. I am familiar with Cayman although feel they have sold out which has raised the cost of doing business.

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el flaco says on Feb 15, 2006, 03:00:

Get professional advice How I envy you, you're doing what I'd like to do, however I am prevented by my English wife who wants to stay in England. I am English and we are dealing with a complicated subject which I have discussed with my accountant, he hasn't the specialised knowledge but can pass me on to another firm who does; clearly from above there is no point in me paying for this advice.

From what I have heard you must be careful about whether you remain UK resident and pay UK taxes or leave the country and pay local taxes. You can still live abroad cheaply while paying English taxes. If you decide to not pay UK taxes you may find it hard to return, I heard of someone who could only visit for six months a year but wanted to be with his grandchildren in the UK. Frankly, the taxes in the UK aren't too bad it's the life that is awful.

So please get professional advice on the various options. I wish you every success.

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viewpoint says on Feb 15, 2006, 03:43:

LATINLIFE Don't even waste an airplane ticket on COLOMBIA for your purposes. PANAMA should be your only consideration in Central America or northern South America. COLOMBIA is one of the few countries besides the USA that has GLOBAL taxation (but doesn't seem to enforce it). The Phillipines is another country because they adopted the USA tax code as their own.

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LDW says on Feb 15, 2006, 11:41:

LATINLIFE Hi Latinlife

Canadians who want to retire offshore face this issue too. I am a professional person insofar as the Canadian situation is concerned, and since the UK determines taxable status on the basis of residency (as does Canada), I suspect that some of what I am about to say also applies to you. I suggest you put some of the following issues to your own advisor.

Whether or not a Canadian should sever his residential ties with Canada at retirement should depend on the nature of his savings and the nature of the income that will be derived from those savings. If his savings are large and consist mostly of tax paid money, he would most likely be better off to sever his residential ties and move his money to a safe offshore location such as Luxembourg, Bahamas, Cayman Islands, Switzerland, Panama, etc. Rather than pay high Canadian taxes, it would probably be cheaper for him to pay for private health care coverage offshore.

On the other hand, if his savings were mostly in the form of a private or company pension plan, the pension derived therefrom would be taxable in Canada anyway, so he might as well file a tax return in Canada as if he were a resident. He would at least maintain his right to provincial health care, although he would probably be also well advised to top it up with some modest amount of supplementary coverage. Of course, he would have to maintain an “address” in Canada, which for most Canadian retirees could be the address of one of their children.

Elflaco………..a note to you………I agree, life in the UK is becoming intolerable. I don’t blame you for wanting to leave for Colombia. The weather is better and most Colombian cities are more civilized and not nearly as degenerate as London, Birmingham, Bradford, and others. The UK can thank 50 years of politically correct immigration policy that has lawmakers there so cowed and intimidated that some piece of Muslim human garbage can, with total impunity. walk around with a sign-placard openly calling for the beheading (murder) of anybody who says something unkind about their god, their prophet, and their religion. That punk was not arrested, and murder for exactly that kind of thing has already happened in Holland. If you walked around with a placard saying something unkind about their god, you would probably be arrested. We are not far away from that in Canada. Downtown Toronto looks more like the Middle East than the Canada I knew. There was even an attempt to bring Sharia Law to Ontario. I suppose a major difference is that the UK land mass is small, which makes it difficult to remove oneself from that rubbish. Canada is a big country, and it’s easy to find a place where one does not have to look at that filth each day.

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poco says on Feb 15, 2006, 12:01:

Damn LDW you sound Just like some British Engineers I know,, Engineers that long ago gave up on G.B. and are working/doing business via: The Isle of Man and NOT living in Britian. I didn't know the Isle of Man,, was not to be spoken of??

The insurance is the "big item",, ahhh,, FREE !!! WoW. This holds the "loyalty?" of the majority,, wonder if they know you can get (better?) medical family policies in Colombia for,, 120,000 pesos per month?

"When you men get home and face an anti-war protester, look him in the eyes and shake his hand. Then, wink at his girlfriend, because she knows she's dating a pussy." Quote - General Tommy Franks

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LDW says on Feb 15, 2006, 14:30:

hi poco The provincial health insurance I mentioned is not free. We pay for it with our taxes, and I was contemplating a scenario whereby the Canadian would be taxed on his Canadian source income in any case, particularly when that income would be some sort of Canadian Pension. Taking advantage of the provincial health care plan merely puts him in the same boat as any other taxpayer.

As for sounding like others (British Engineers??), I am not trying to do that. I am merely expressing both my sympathy for Elflaco's desire to leave the UK and my outrage and disgust at the double standard that exists there. Perhaps you have not seen that photo of 2 London bobbies standing protecting some masked demonstrator who was calling for the death (i.e., murder) of people who don't like his filthy Islamic religion. The police were protecting him!!!. But I guarantee you that if a sign was held up calling their god allah a "pig", that demonstrator would be arrested.

I don't blame Elflaco from wanting out of there!! The UK is becoming a disgusting place.

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LDW says on Feb 15, 2006, 14:37:

poco a further note....I was aware of the insurance available in Colombia that you mentioned, and when I suggested in my earlier post that some sort of supplementary coverage be obtained, I was referring to exactly what you mentioned. But if the Canadian ex pat is paying Canadian taxes anyway, he might as well avail himself to the benefits that other Canadian taxpayers would have, especially if he plans to make frequent trips back to Canada visit children (as many do). Would the Colombian insurance cover that? I have my doubts.

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jh816 says on Feb 15, 2006, 14:56:

Good post, I've been thinking about this myself. Thales is also the firm I have set up with though I have not funded the account yet. They seem to be fairly stable and reputable given other sources. I am not a big fan of funds because of the expenses. You can usually diversify your investments on your own by buying 8-12 different stocks/bonds/etc. within the asset type if they are not too closely correlated. What type of funds are you looking at? Thales has a nice offering of South American bonds.

I would think very hard about giving up any kind of residency in your country. I'm American (not a very en vogue citizenship right now, but it has some benefits) and would hate to not be able to get back if I decided at some point that I didn't want to live in South America anymore. Without giving up citizenship, you're either going to have to pay the taxes or try to play tax-evader(Yes, I've thought about it also, but is it really worth it?)

One solution that may kill two birds(diversify your investments and reduce your tax burden) if the English tax code is anything like ours. Think about putting some money into a tax-sheltering investment. I own rental property(have it professionally managed, because managing it yourself is just a headache). With the depreciation and interest payments, I end up with a write-off for other taxes. I earn around 8% on the investment and drop about 6% off my taxes.

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latinlife says on Feb 15, 2006, 15:41:

More info..... ...Thanks for some good info.
I have no intention at this point in time of giving up english residency( I have a limited co en england so keeping the n.i.payments ,etc is not a problem),also A long way from retirement ( 18 years to go at present,but this could change with our chancellor spending like no to-morrow).

The pot of money is an attempt to avoid wealth tax and get into some good funds which are closed off to normal uk residents.
I will keep a small property and move everything else offshore .
I thought this was the preserve of the very weathy but with ever increasing taxation ,I feel it is time to fight back where I can.

Panama is the offshore target but colombia is where I am going to spend quite some time.

Ldw.....not a big fan of multi culturism I assume. Yes It's starting to come off the rails here but soon I will be the in the minority (in colombia)

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poco says on Feb 15, 2006, 15:45:

Coverage (not coverup) Would the Colombian insurance cover that? I have my doubts.

I would bet it WOULD NOT. My U.S. insurance coverage is through a professional association. EXPENSIVE,, my biggest expense but necessary.

My primary reason for getting Colombian insurance was to assure I wouldn’t be faced with an “Emergency” requiring a large expenditure of my funds. Not for me,, but the girl or her kids. I had overseas coverage, necessary for foreign employment.

The first couple of years she had the Colombian “national insurance”. The coverage seems the equal of,, probably better than the “Emergency Room” treatment you get in the U.S. plus they would see you quickly if you had a problem,, but NO preventive care. I thought it would be better to have a policy on them.

Imagine my surprise when I discovered it would cover me (I’m on a tourist visa),, not only cover me,, but I’m the primary payer (forgot the Spanish term) so my health coverage is totally covered,,, theirs,, I think it is 10 percent. Ha,,, I’d wasted two years of overseas premiums,, they were cheap,, but not as cheap as the Colombian full coverage.

As for my comments,,, you should see the batch of email I get from acquaintances all over the world.

This type of mail is circulating within the multi-national engineering, oil, and service companies. Before a year ago I’d normally open up funny pictures, calendars with “scantily clad women” and jokes.

It was surprising to see the first few emails articulating the problems you mentioned. Even more surprising has been the increased volume. Almost shocking has been the comments coming from India’s Engineering professionals. I can say this for a fact,, I know of NO ONE who is complacent about what’s going on in the Muslim world or their own country. I think the London incident first, then the Danish "big deal" fanned the flames. This is the latest example.

Cartoons and Riots

Received one praising Australia, seems they have their eyes open.

"When you men get home and face an anti-war protester, look him in the eyes and shake his hand. Then, wink at his girlfriend, because she knows she's dating a pussy." Quote - General Tommy Franks

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LDW says on Feb 15, 2006, 19:37:

Latinlife...and poco I apologize for not making myself clear.

I am very much a fan of multiculturalism. I have been married to a Colombiana for 30 years, and I am contemplating retirement there. I speak English, and I am (conversationally at least) quite comfortable in Spanish. I can also muddle my way through a couple of other languages. My Spanish is good enough that I was offered a position with KPMG in Cali about 12 years ago (which I decided not to accept). I have business ties with people from India too. I enjoy being with those people. I respect Hindus and Sikhs, and the ones I know respect me. No Hindu has ever threatened to kill me for eating a BIG MAC. It is not a racial issue with me at all! It’s an issue involving a totally irrational, intolerant, and dysfunctional set of beliefs.

What I am not a fan of is a body politic that is so politically correct, cowed, and intimidated by a bunch of low life Islamic garbage that a London policeman actually finds himself protecting a demonstrator who is openly espousing cold-blooded murder with a demonstration placard. That piece of scum should be arrested, jailed, and sentenced to cohabitate with real pigs. The UK in general, and London in particular, have more than just come off the rails. It’s a disaster area. Of course, London is not alone. Other cities in Europe are in the same boat. I invite you to do a Google search on “Muslims in Malmo”. It’s the same there. One Swedish woman living there, and who had lived in New York for 25 years, commented on how much she missed the safety of New York!! Swedes have become refugees in their own country!! In Denmark and Sweden, Muslim immigrants make up something like 4% of the population, but also represent 80% to 85% of the convicted rapists. The numbers don’t lie.

Having said all of this, I must acknowledge that parts of some major Canadian cities are going down the same path.

Like I said, I sympathize with Elflaco’s desire to leave the UK for Colombia (although his reasons could very well be different than mine would be). At least the weather would be better. The culture (music, art, dress) there is beautiful. Too many European cities are becoming uninhabitable wastelands and cultural disaster areas for the reason (unchecked immigration of human garbage) that I have mentioned. Political correctness makes me puke. Letting large numbers of Muslims into our countries is like mixing shit (the muslims) with fresh ice cream (civilized people...and I am not referring to race). No matter how much fresh ice cream you add to the shit, the ice cream will still taste like shit.

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el flaco says on Feb 17, 2006, 02:17:

Legal? I would like to distance myself from any comments on race, religion or politics. Now back to the question, if you remain a UK citizen you have to pay UK taxes. It is not illegal to invest money overseas, nor is it illegal to use another name, however it is illegal not to declare any income to the Inland Revenue. So why go to all this bother?

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rologringo23 says on Feb 17, 2006, 05:02:

use... use dresdner bank in panama...its a german bank and your funds will be safe there

MB

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gringolondinense says on Feb 17, 2006, 06:01:

not true If you are a UK citizen, you only pay UK taxes if you are resident there! If you live in say colombia from april 2006 - april 2007, you do not have to pay the UK government a penny in tax.


A good source of info for funds and offshore banks is lowtax.net. Be careful though, most businesses advertising their services will just be selling you a structure like a trust or company without really checking out the tax laws or your personal situation. They just want your money.

If you want privacy from the UK government, invest in a bank, organisation and country that has no european ties. Dont get an offshore account with lloydstsb and the like - they have a habit of passing customer names to the goverment.

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LDW says on Feb 20, 2006, 00:29:

Tinto This whole thread has not really been Colombia based. Actually, my editorial comments on Europe in general and the UK in particular came closest to the topic of Colombia, because I gave my reasons for my sympathy for Elflaco wanting to leave the UK for Colombia. I thought I was casting Colombia is a comparatively favorable light, especially since Colombia itself gets so much bad press. Anyhow, nuff said.

p2000 is right. UK citizens who sever their residential ties with the UK are not subject to tax on income earned outside the UK. There are very few countries in the world that tax people on their world income on the basis of their citizenship. The US and Phillipines are two that I can think of. Strangely enough, I am not sure about Colombia, even though my wife is from there, but she left Colombia 32 years ago. I have never asked!

I am quite convinced that safety and stability of the country, the banking system, and the worldwide reputation of the bank itself are more important considerations than the country's secrecy laws when it comes to choosing an offshore banking location. I am not convinced that secrecy is so readily available now, especially since 9/11. I would never advise any Canadian or UK resident, or US citizen to rely on another jurisdiction's banking secrecy laws to engage in tax evasion. If Canadian and UK residents want to sidestep taxes on their world income, they should leave the country.

But...like I said......if Canadian or UK residents retire in Colombia (or anywhere else) and still rely on their UK-based or Canadian-based pension for their retirement income, such income will be taxed in the source country anyway, so it it may very well be to their advantage to continue to file tax returns in those countries as if they were residents. See my posting above on this point.

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