Selecting an offshore jurisdiction is an integral part of establishing an offshore structure or financial account. The jurisdiction that you choose should have at the very minimum, the following 10 characteristics:
1. Advantageous Fiscal Platform For Offshore Business – Panama has no capital gains tax on offshore investments, no interest income tax on offshore bank account interest, no offshore income tax, etc.
2. Favorable Incorporation Laws – the corporate laws of the country should enable you to hold “Bearer Shares”, have directors from any country, inexpensive, and be able to incorporate Private Interest Foundations like Panama does.
3. Stable Currency With No Currency Restriction Regulations – the currency of the country must be stable, and there should be no restrictions on the movement of funds in or out of the country, and your offshore bank should be able to hold your money in any major currency.
4. Strict Privacy Laws – there should be strict privacy laws that protect your banking information and corporate book information.
5. Stable Government – the government of the country should be a stable democracy. The country should also be safe to visit.
6. Stable Economy – the economy of the country should be stable, with consistent growth and low inflation.
7. Excellent Banking System – the banking system of the country should be advanced in areas of international banking regulations, infrastructure, government auditing, and technology.
8. Excellent Communications System & No Natural Disasters – the communications systems of the country should be technologically advanced in comparison with first world countries, and the country should be located in a region that is free of environmental / natural disasters (hurricanes, tornadoes, earthquakes, tidal waves, etc.), so communications are never severed or problematic.
9. Language Compatibility – the language of the country should be suitable for your understanding.
10. Time Zone Compatibility & Close Location – the time zone of the country should be such that you can contact your offshore provider or financial institution during your normal domestic business hours & fly to the country quickly (same day) if necessary to handle urgent business or financial needs.