Slide 1

Offshore 101

How To Diversify Your Life,

Protect Your Assets, And Live Tax-Free

By Stephen Harrison MBA

Topics of this moduleWhat IS Offshore?BenefitsThis offshore havenCostHow to manage your offshore businessLegalWhats involved?Where do I go from here?

My experience

I have...lived and worked in 7 countries on 5 continentstraveled to more than 70 countriesbought and sold real estate in 5 countriesstarted business ventures in 7 countriesopened multiple foreign bank accountsacquired a second passportand 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.

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.

WHY OFFSHORE?

Today it makes urgent sense to consider options and opportunities for going offshore:

To gain shelter from thepotential crash of the dollar and the euro...To escape thenever-ending financial crisesacross the globe...To distance yourself fromrising taxes and increasing regulations...To regain yourright to privacyand independence...Todiversify your investments...and your lifestyle...

Why Offshore?

Whats up with Spain?

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:

Obtain a certification of uniqueness of proposed company name (certificacin negativa de la denominacin social) from the Mercantile RegisterOpen a bank account for the company; deposit capital in the bank and obtain a deposit certificateGrant a public deed of incorporation before a public notarySubmit Declaracin Censal de Inicio de Actividad and obtain the Tax Identification Number (Numero de Identificacin Fiscal, NIF) from the Delegacin Provincial de la Agencia Estatal de la Administracin TributariaObtain a tax declaration of exemption from the Direccin General de Tributos - Consejera Hacienda ComunidadFile the public deed of incorporation of the company for its registration with the Mercantile Registry.Legalize company booksSubmit a notification of start of operations (declaracin responsable) to a private agency authorized by the municipality (ECLU)File for social security and affiliate all workers with the local general treasury of social security (Tesorera General de la Seguridad Social)

United Kingdom Company set-upSet-up time: 48hoursCost: 25Capital Requirement: 0Corporation 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 Taxnine months and one dayafter 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.

Foreign InvestorsYou do not need to be a UK citizen or a UK resident to incorporateYou do not need to visit the UK to incorporate the companyOnly one person is required to incorporate a new Ltd companyA UK company can be incorporated even though it does not trade in the UK

Company Shareholders and DirectorsA private company only requires one director and one shareholder who may be an individual or corporate body.

Private Limited Company - LtdOwned by shareholders who, in the event of the business failing, are protected by the limited liabilityPersonal assets of directors and shareholders cannot be used to pay off company debtsA limited company will continue to trade irrespectively of changes in directors, secretary, management and or ownershipThe company may enter into legal contracts and own property

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.

Requirements:

Photo ID (Passport or DNI)Proof of addressBusiness plan with Cash flow forecast

Director RequirementsEvery 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 RequirementsEvery 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.

PANAMThis Little Offshore Haven Deserves YourAttention More Than Ever Before

PopulationThe 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.

LanguageSpanish is the official and spoken language. English is also spoken widely in urban areas and is used daily in commerce and international trade.

CurrencyUnited States Dollar.

Exchange ControlNone.

Type of LawBased on Spanish Civil Law with many Common Law influences, particularly regarding Company Law.

PANAMAS ECONOMY

Panamas GDP is US$30 billion. Its per-capital GDP is US$14,000. Its 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.

Its on track to do that. Right now, Panamas 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 countrys economy has grown every one of the past dozen years, including in 2008 and 2009.

Apparently someone forgot to tell Panama about the worlds financial crisis

The cornerstone of Panamas 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, theyll complete the Canal expansion that theyve been hard at work engineering for the past six years. This will mean more ships, bigger ships, more crossings, bigger revenues.

And its not only Canal revenues that are driving Panamas 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.

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.

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.

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:

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...

Right now, Panama is among the top 10 worldwide for:Foreign direct investmentMobile phone subscriptionsQuality of air transportationQuality of port infrastructureSoundness of banking system and accessibility of financial services

MAJOR ADVANTAGES OF PANAMA COMPANY:

Exemption from all local taxes, when income received outside of PanamaInexpensive annual supportNo requirements of a minimum paid up capitalInformation about shareholders and beneficial owners is not filed with the Public Registry Office and not available to the publicAny individual and legal entity may become a shareholderNo foreign exchange control.

Panama Company, ideal for:

BusinessmenCommerce over the InternetConsultants / CounsellorsInternational businessHolding intellectual property rightsFor the custody of movable and immovable propertyFor inheritance purposesStockbroker / forex

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.

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.

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.

Offshore Structure

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

Offshore StructureFoundationInternational Business Corporation

BelizePanamBeneficiaryAdministratorPresidentDirectors

COSTS

IncorporationThe formation of a Panama company takes from 3 to 5 working days and it costs from about 500.00.

Annual MaintenanceThere is an annual franchise tax levied by the government to maintain a company in good standing, amounting to US$250.00Annual 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.

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 locatedBank confidentiality to preserve the privacy of our customersFinancial guarantees of the bank to avoid the risk of bankruptcyExcellent reputation of the institutionWide range of financial products offered.

What banking facilities are available ?

As a general rule the following facilities are available from the financial establishments :

Multi currency accountsE bankingTrading in currency, shares and other titlesInterest bearing accountsCredit card and debit cardLetter 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.

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.

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

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 theultimate in personal and financial freedom and security...

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

Where do I go from here?

Investigate onlineDecide if going offshore is right for youSpeak to an expert (like Stephen )

ceo@gintsa.com

www.gintsa.com (Its in Panam)

Put your investments on autopilot,virtually eliminate risk, minimize or eveneliminate 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...

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 timesfinancially, 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.

Diversificationas it's touted elsewherewon'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 youcanbe certain about...

There's still time to hedge against:

inflation, litigious thieves, corrupt and prying governments, total financial meltdown and more

by properly diversifying your lifeand truly going international.

Here's why...

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 afraidor too ignorantto do much of anything about it.

The American government is running out of money.Fast.It has to borrow moneyevery monthjust to service its debt. Your family couldn't survive long doing that. And neither can the U.S. government.

I'm afraid the moneyand the powerare leaving the United States swiftlyand 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 doesnt 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 peoples money.

Think it can't happen here?

It already is.

At the end of January 2014, Obama announced a plan designed tohelpyou. The plancalled MyRAwould allow first-time savers to build their savings inside Treasury Bonds. In other wordsgive 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 bankruptcyby their own doing.

It's a clear signal that the United States is taking a run for your money. It's not like Cyprusyetbut I believe it will be.

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 movecalled the New Silk Roadconnects trade between Europe and China.

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 governmenttakessteals it from youin the name of Patriotism?

What good is owning real estate here if its no longer worth anything? What good is your passport when things really go sideways and you want to leavebut arent allowed?

The solution is simple...

Truly go international. Get as much of your moneyand your lifeout of the United States as you canand put it in places around the world that make sense.

You dont have to leave your country if you dont want to. But you need to be ready when the time comes...

Secret Global Diversification StrategiesFor Turbulent Times

"...we have a system where we canallocate capital without tax consequences.We can move money as the text books sayto where it can be usefully deployed..."~ Warren Buffett

I've moved my moneystrategicallyin 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 dostarting todayno matter what your current financial situation is.

In fact, it's easier to do if youdon'thave a lot of investments currently. But if youareinvested heavily, it's all the more urgent you get started nowbefore 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...

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 dollarso you can get the benefits of any strengthening of the dollarbut they can be unpegged at anytime, so when the dollar tanks, it doesn't drive them downward. All reward, no risk.

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.

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 advantagesnot the least of which is having somewhere to go (and something to eat) in the event of some domestic catastrophe.

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 futureor your familys 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.

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 doand 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 thinkespecially if you get the right advice upfront.