At Shelter Offshore we try to provide information and advice that can be applicable to all people.
Sometimes however it’s important to focus on the peculiarities or unique nature of a given jurisdiction or country where the laws of that land affect its citizens specifically.
When it comes to discussing offshore anything and US citizens - from offshore trusts to investments, from offshore banking to company incorporation - it’s important to note the following facts: -
- US citizens are taxed on their worldwide income. This includes income from interest, dividends and gains whether onshore or offshore.
- The US government allows money and assets to be moved offshore freely; however it requires full disclosure relating to the amount of money or assets moved and when they are moved.
- The US government has task forces committed to the prevention of money laundering and tax evasion.
- The US government makes it clear that US citizens must comply with all reporting and taxation demands.
So, does this effectively render the offshore world inaccessible or at least useless for US citizens?
No, far from it in fact!
The utilization of offshore trusts and bank accounts can be an excellent way for US citizens to legally and securely protect their assets and themselves from litigation for example.
Offshore trusts offer an individual a fair degree of personal confidentiality, privacy and asset protection from claimants such as an ex-spouse or business client for example; and if properly structured, offshore bank accounts can offer degrees of financial protection from potential future claims as well.
There are many companies and individuals who claim to be able to offer US citizens offshore solutions for taxation reduction or negation purposes. The bottom line is - as stated previously - US citizens are taxed on worldwide income. Therefore it is at best unlikely that the services being advertised will apply to a US citizen and at worst the opportunity will require the US citizen in question to break the law.
Where information relating to the tax efficient, reduction or negation nature of offshore solutions exists on this site, it is not applicable to US citizens. Shelter Offshore always emphasize the need to seek personal and professional advice before making any potentially far reaching taxation, legal or financial decision as personal circumstances dictate which options and solutions are available, applicable and constitute ‘best advice’.
