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LAVECO LTD.

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LAVECO LTD.

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    1. LAVECO LTD. MIPIM 2009 Cannes, March 10th – 13th 2009

    2. to provide insight into the possibilities offered by offshore companies in the sale and purchase of real estate to present the advantages which can be obtained by the use of such companies to introduce the services offered by LAVECO Ltd. in this field: company formation opening of bank accounts registration of companies in Cyprus administrative services

    3. Problems to be resolved: taxation: countries with high tax rates 25 – 35% profit tax sale of real estate may be subject to VAT stamp duty may be payable, usually by the buyer inheritance inheritance tax may be as high as 40% in certain countries women can not inherit asset protection malicious family members, relatives business partners spouses anonymity business competitors official state bodies

    4. What do we mean by the term offshore company? There are numerous countries and jurisdictions throughout the world which have developed advantageous tax laws for companies which are registered in these countries. Countries falling into this category are known as tax havens, and companies registered there, but not carrying out activities there, are known as offshore companies.

    5. Which are the best-known tax havens and offshore jurisdictions? Well-known jurisdictions: British Virgin Islands, Panama, Seychelles, Belize, Gibraltar, Cayman Islands. Not typical offshore, or semi-offshore jurisdictions: England, USA, Hong Kong, Cyprus.

    6. What taxes exist in these countries? In the countries listed above, there is either no tax at all on profits of a company, or the tax rate is extremely low. In the case of the Seychelles the tax is a fixed rate of 100 USD per year, while in the British Virgin Islands the figure is 350 USD, irrespective of the company’s annual turnover or profit. Resident companies in Cyprus are subject to 10% tax on profits, which by global standards can be considered extremely favourable.

    7. Can an offshore company own real estate? The by-laws of just about every type of offshore company allow for the company to buy and own real estate in any country in the world. It is also necessary, however, to take into consideration the laws of the country in which the real estate is situated, as these may vary considerably from country to country. There are countries where foreign companies can not buy real estate, even with special permission. In some countries, certain types of real estate (e.g. agricultural land, listed buildings etc.) can not be owned by foreigners, while the ownership by foreigners of other types is subject to special permits. In other countries, if owning a property also means owning the land it is built on, then this may only be achieved through the formation of a local company, and in this case, it may not be advisable to have the building itself owned by a foreign company. In the most liberal countries, there are no restrictions on the acquisition of real estate by foreigners, and so foreign companies can own property without having to obtain special permission.

    8. How can offshore companies be used in real estate transactions? Sale and purchase of real estate through an offshore company I. Sale and purchase of real estate through an offshore company II. Sale and purchase of real estate through a project company I. Sale and purchase of real estate through a project company II.

    10. Sale and purchase of real estate through an offshore company II.

    11. Sale and purchase of real estate through a project company I.

    12. Sale and purchase of real estate through a project company

    13. The benefits arising from the use of offshore companies: taxation: no profit arises from the sale of the real estate in the country in which the real estate is situated - there is no profit, so there is no requirement to pay profit tax or VAT the real estate itself has not been sold, so there is no requirement to pay stamp duty the share certificates are handed over, no inheritance tax is payable asset protection: assets are kept separately, nobody else has access anonymity: the individual does not appear as the owner of the real estate in the official records

    14. Introduction of the LAVECO Group LAVECO Ltd. – established in 1991   We currently have 5 offices: UK – London Hungary – Budapest Cyprus – Larnaca Romania – Bucharest Bulgaria – Sofia   The main activity of the company is the incorporation of tax-free and low-tax companies in more than 40 countries and jurisdictions throughout the world, together with related supplementary services.

    15. Main services Company formation in more than 40 jurisdictions worldwide Opening of bank accounts Registration of companies in Cyprus Administrative services

    16. Company formation in more than 40 jurisdictions worldwide Traditional offshore jurisdictions: Zero tax havens: fixed rate of annual tax (100 – 350 USD) British Virgin Islands, Belize, Bahamas, Seychelles, Marshall Islands Territorial tax principle: Panama, Hong Kong US companies: Limited Liability Company For non-US owners and managers, operating outside the USA Delaware, Wyoming, Utah, Nevada, New York, Washington D.C.   For trading within the EU: Cyprus: low tax (10%) – EU prestige   Prestige companies: UK Ltd. and LLP companies   Specialised companies: asset protection foundations – Panama

    17. Opening of bank accounts More and more difficult: a significant number of banks throughout the world have now turned their backs on accounts for offshore companies Private banking: available in almost all banks, but high deposit required (typically 500 000 EUR) LAVECO speciality: retail banking possibilities for companies incorporated through our services: Cyprus Hungary Slovakia St. Vincent and the Grenadines Liechtenstein

    18. Registration of companies in Cyprus Cyprus has been a member of the EU since 2004 profit tax was increased from 4.25% to 10% (lowest in the EU) liberal approach of the tax authorities stable banking background professional infrastructure: bankers, lawyers, accountants, consultants possibility of obtaining EU VAT number – for trade within the EU no withholding tax no capital gains tax  Private individuals resident in Cyprus for tax purposes: must spend more than 183 days on the island in the given tax year tax-free salary up to 19500 EUR no capital gains tax no inheritance tax no gift tax

    19. Administrative services secretarial services: forwarding of mail, fax and telephone messages arrangement of accounting and auditing services: UK, Cyprus arrangement of legal advice obtaining corporate documents (Certificate of Good Standing, Certificate of Incumbency), amendments to company details (change of directors or shareholders, company name change, increase of capital etc.) provision of nominee owners and company directors fiduciary services ready-made companies from 11 jurisdictions in one working day

    22. Thank you for your attention! Please feel free to visit any of our offices for more information and free consultation!

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