How to transfer money to offshore?

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Why do I have to transfer money offshore? How do I do that? Is it legal to transfer it offshore? What advantages and problems can I have in future?

Moving or transferring money from your country of residence to a tax-free jurisdiction is completely legal and will not cause any problem with the tax authorities of your country as long as the money you want to transfer is taxed. For example, imagine that a person has a company in a jurisdiction with high taxes and every year pays all the taxes that correspond to his commercial activity: corporation tax, value added taxes and income taxes. Once the taxes are paid the beneficiary of this company is free to do with this money whatever he wants. He can buy a second home abroad, invest in foreign stock exchanges or open new lines of business in both physical and e-commerce in any country in the world.

Moving money offshore is simple. However, when a person registers a company that generates annual dividends and then without declaring them he transfers this money generated from his offshore company to his current account in his country of resideence that´s when the problem arise. In this case the tax authorities of your country of residence can question you about the source of this income? Logically, when not being able to justify it through your business activity in your own country of residence, you may be subject to some type of administrative sanction.

What problems can I have when transferring money to offshore?

The tax authorities are always pending the transfers of money from one country to another but if this money or real estate is declared, this transfer of funds will not cause any problem. The logic of the fiscal authorities when sanctioning natural persons or companies is based on the increase of unjustified patrimony. That is to say, someone who declares to have returns of 15,000 pounds a year and has in his current account 100,000 pounds and has 3 houses on his name worth 200,000 pounds each obviously has a patrimony that doesn´t correspond to his declared earning. Or a company that declares annually that it has a profit of 20,000 pounds and has on its corporate accoung 300,000 pounds and 3 offices valued for 100,000 pounds each is making the same mistake by presenting an unjustified patrimony. How do I avoid this situation? The magic formula is very simple: have nothing registered on your name in your country of tax residence. The tax agencies are based on: if you have money in your current account or have a company in your country I can force you to pay, but if you do not have any current account or assets on your name, I will hardly be able to recover the money because you have nothing to seize.

As long as the money is declared and is of legal origin, transferring money to offshore is very simple, but you have to take some precautions always. Depending on the foreign bank and the amount you need to transfer, you can always ask for a certificate of origin of funds. Once justified before the entity, you can transfer all the money of the country without any restriction.

Also anyone can carry cash with him when travelling to another country, but due to the regulations against money laundering one can carry only 10,000 pounds. How can I carry more money when travelling? You will have to talk to your financial institution or tax agency and ask them to issue a certificate so that you will be able to withdraw the amount of money you want from the country. On arrival to another country, you will have to present the certificate to the relevant authorities in order to be able to purchase a house or to make an investment. When making a wire transfer of any amount higher than 100,000 EUR it is possible that you will be asked to fill in a certificate explaining the purpose of said transaction. Once completed and presented you can make a wire transfer.