Offshore Asset Protection with International Escrow Services

How an international escrow contract can offer offshore asset protection during deals and transactions such as when buying property abroad

Most international business persons will already be aware of how escrow services can be incredibly useful especially when dealing with new or unknown third parties during various business or trade transactions – but did you know that anyone can achieve offshore asset protection with international escrow services?

It’s true – with the use of an escrow agent’s services in a reputable offshore jurisdiction, anyone about to trade, sell or transact can protect themselves, their assets and their wealth.  In this article we explain how escrow services work and give examples of how the likes of you and me can use an escrow agent’s services when buying or selling anything from property abroad to oil or even aeroplanes and yachts.

The correct definition of an escrow is the holding of funds, goods, documents or intellectual property by a trusted third party pending fulfilment of certain conditions – and an example of the way an escrow can work in a real estate transaction for instance is as follows: -

A property investor in country A has identified a piece of real estate in country B that meets his specific criteria…instead of sending the entire asking price for the property to the vendor in country B and trusting that upon receipt they will transfer the title deeds into the name of the property investor, the investor can send the funds to a licensed escrow agent in a reputable offshore jurisdiction.  The vendor of the property in country B will send the title deeds to the escrow agent as well and when the agent is in receipt of both, the funds and deeds will be transferred.

Naturally enough you need to find a reputable escrow agent!  Fortunately there are many international and offshore escrow services available which are undertaken by licensed agents.  Cyprus is one such jurisdiction where many escrow contracts are drawn up - because Cyprus is considered an offshore and tax efficient jurisdiction but it is within the EU and therefore well regulated, it makes a perfect location for many involved in international business transactions who require offshore asset protection and therefore many specialist escrow agents are available on the island to assist.

Please note that a legally binding and official escrow contract has to be drawn up between all parties involved in the deal and the escrow agent takes instructions from all parties involved in the deal when drawing up the contract.  Only when all parties are satisfied does the deal go ahead and only when all the terms of the contract have been fulfilled does each party receive their expected goods, commodities or payment.

In terms of the commodities, entities, real or intellectual property that can be protected by an escrow contract there really are very few limitations – you could include oil, rice, minerals, commercial or private and residential real estate, cars, boats, planes, race horses or even livestock for example – and if in doubt just ask!

If you would like more information about how escrow services could potentially be of use to you when buying or selling property abroad for example or when transferring money or goods internationally, or how you can achieve offshore asset protection during the duration of a business deal with an escrow contract, please complete our offshore advice form to be put directly in contact with Chartmore and Co., who offer commercial escrow and fiduciary services internationally.