Is Going Offshore Legal?

Taking a detailed look at the question of legality relating to going offshore and saving tax by going offshore

The very first question that most people need answering when researching the pros and cons of going offshore is the one relating to the legality and legitimacy of going offshore – i.e., ‘is going offshore legal?’

The very simple answer to this question is that YES, going offshore is 100% legal for the vast majority of people!  In this article we go a little further in depth to explain why going offshore is legal and what an individual’s obligations are relating to the reporting of their offshore activities so that their actions remain legal.

As stated, yes going offshore is 100% legal for 100% of people living in free society which is why anyone and everyone from politicians to pop stars have offshore structures and solutions in place to protect and enhance their assets and their wealth.

What is NOT legal however is going offshore to evade taxation, to launder money or to engage in any other criminal activity for example.  We will assume at this stage that this is not what you had in mind when you began researching your offshore options…

The only other crucial aspect relating to the legality and legitimacy of going offshore that you need to understand and accept is that you must report your offshore activities where a legal reporting requirement exists – remember though that offshore trusts, companies and other legal entities can sometimes actually be structured and effectively managed so that you end up with very few or no reporting requirements at all depending on your personal circumstances.

Understanding Your Right to Go Offshore for Expatriate Tax Saving Purposes

One of the main reasons why anyone ever considers going offshore is for the purposes of reducing their overall tax burden which is why it is worth addressing this point within this article as well.

Whilst tax evasion is illegal, you are still living within the letter of the law if you go offshore for tax reduction, tax deferral or legitimate tax avoidance reasons.

Whilst you are obligated to pay taxes you do not have to pay more than you are legally obligated to pay - and what’s more, every taxpayer has very well-documented and proven legal rights to structure their financial affairs to -

a) conform with their personal tax code whilst
b) minimising their tax liability.

In conclusion – not only is going offshore legal, you have the right in this day and age to structure your personal financial affairs to legitimately minimize your tax burden and if this involves you utilizing the offshore world then that is your right.  Just remember that if you are going offshore you need to do it right.  So get advice relating to your personal circumstances and don’t take risks with your money or your freedom.