Registration of Offshore Trusts.
Registration of Offshore Trusts
Registration of Offshore TrustsRegistration of offshore trusts. One of the most common questions among businessmen interested in offshore jurisdictions is “What are the best locations for registration of offshore trusts?” Trusts can be open anywhere in the world and many countries offer good conditions for registering an offshore trust. Activities of international offshore trusts are governed by the Hague Convention of 1985. It’s influence is only limited to trusts that were created voluntarily and in writing. In the EU an offshore trust is considered to be a separate structural unit based on the law of property and must be recognised at the legislative level. Most often registration of offshore trusts is carried out in jurisdictions that operate in accordance with the Anglo-Saxon law. Most of those countries are part of Britain colonies. However, even countries with civil how have begun to organise trusts in their jurisdictions.
One most important requirement in choosing a location for registration of offshore trust is the recognition of the legal concept of trust. Offshore trusts are usually created in the low level tax and regulation offshore jurisdictions with a proven track record for successfully managing and conducting business trusts and trust funds. It is also important to take into account the costs of the initial registration and maintenance.
Some other criteria to consider when choosing the best location for registration of offshore trusts:
- Political and economical stability of the chosen offshore jurisdiction
- Geographical location and time difference
- Language
One of the most popular places to for registration of an offshore trust is Nevis, Cayman Islands, Isle of Man and Cook Islands. Among other less popular jurisdictions are Islands Jersey / Guernsey, Liechtenstein, Panama, Bahamas and New Zealand due to poorer track records in court and weaker legislation to protect your assets. This list however is far from complete, and much depends on the use of trusts and place of residence (tax residence, permanent residence) as well as the founder of the beneficiaries of an offshore trust.
