October 25, 2019

Offshore company

Founding an offshore company

In the search for tax optimization, companies sooner or later come across the term off-shore. This term is usually mentioned in the same breath as tax haven or tax haven. But what does it actually mean to set up an off-shore company? The term translates into German: Far from the coast. However, this term is misleading because it suggests that companies are founded on remote islands. It is true that offshore companies can even be founded in other EU member states under certain conditions.

The wind has changed: Why starting an offshore company is no longer so lucrative today

Numerous countries around the world have enacted various regulations to curb the misuse of taxpayers' money. One of the largest regulations is the Tax Information Exchange Act, which many countries have signed. There are also more and more registers in which offshore companies and their beneficial owners can be traced. Banking secrecy, once a firm bastion in countries such as Switzerland, is also increasingly becoming a thing of the past.

Nevertheless, there are still countries around the world that have not signed these regulations and do not exchange data with other countries. In addition to many African countries, these countries in Europe include Cyprus, Malta, Romania and Ireland. Anyone wishing to set up an offshore company will not only find the tax conditions for a successful company formation in these countries, but also other advantages such as an intact infrastructure, a favorable workforce, lucrative incentives from governments through simple legislation or tax benefits and much more.