Offshore Investments

Invest Offshore with our Offshore Investments

The investments that Mexicans have outside of our country are known as offshore investments, that is to say, investments and management abroad with countries such as Panama, Belize or Cayman Island, just to name a few countries, generally, in these countries, the income will be subject to income tax. generate from the source of wealth of their country of residence and not from those that come from abroad.

We can mention that the territorial rent system attracts economic resources from other countries, since no matter where they come from, they will not be taxed in the country, that is, they will not pay ISR.

While the world income system as is the case of Mexico or the United States of North America which are based on the taxpayer’s residence is to say that it does not matter where the capitals are located if they pay ISR in the country of residence.

The Income Tax Law (LISR) establishes what is considered to be income subject to preferential tax regimes (REFIPRES) and defines them as follows: those that are not taxed abroad or are taxed abroad. income less than 75% of income tax that would be caused and paid in Mexico, under the terms of title II (moral persons) or title IV (natural persons) of the LISR.

On the other hand, investments abroad can be considered as passive and active.

Passive investments are those where people invest to generate interest, capital gains, dividends, royalties and generally do not seek to be repatriated in the short term.

The characteristic of active investments is that they seek to generate short-term income such as the provision of services or the sale of real estate.

Finally, mention should be made that in February the taxpayers must present an informative statement of the income generated in the previous fiscal year subject to preferential tax regimes through the electronic format 76, clarifying that both deposits and withdrawals are considered to be subject revenue; since in case of not presenting the declaration or presenting it incompletely, the taxpayer will be subject to a penal sanction, this is established in article 111 of the Fiscal Code of the Federation in its fraction V in relation to article 178 of the LISR.

A new star at the offshore investment sky: Barbados

Barbados, the fascinating Caribbean island in the Lesser Antilles, is currently developing into a sought after location for offshore start-ups and investment.

Traditionally, the Barbados economy has always been known for sugar cane cultivation and tourism for several decades. However, the information sector and offshore investment location have been steadily promoted by the local government since the 1990s, and these economic sectors have become increasingly influential in economic development.

Some facts about Barbados

According to the 2013 International Monetary Fund, Barbados is the world’s 51st richest country in terms of gross domestic product per capita. The legal system, although largely independent, is based on the principles of the British Common Law and the official language in Barbados is English. An undeniable factor for potential company formation. Traditionally strong trading partners are the USA, Kannada and Great Britain. In 2009, Barbados also signed an agreement with the EU to help Barbados with a € 10 million program to modernize the international business and financial services sector. Barbados, with its approximately 280,000 inhabitants, also has the third largest stock trading in the Caribbean. The literacy rate of the country is almost 100%.

The Barbados International Business Company

For international and foreign companies, when establishing a business in Barbados, the International Business Company (“IBC” for short) may be considered. It should be noted that the IBC is not allowed to trade within Barbados and also can not own real estate. If a foreign (not English name) is chosen as a company name, a certified translation of this company name may be necessary. Anonymity is also ensured: The names of the shareholders and beneficiaries are not publicly accessible after registration. Establishing the IBC is sufficient for a director (“director”), who can be both a natural and a legal person. In addition, a local representative must be appointed.

Benefits of taxation

The great advantage of IBC’s founding in Barbados, like the essence of offshore founding, is inherent in the substantial tax relief. Profits of over 30 million Barbados dollars can sometimes be taxed at a low rate of only 1%. Taxes on the transfer of shares may also be avoided, provided that the transfer takes place between persons not resident in Barbados or between IBC companies.

Our assessment

The efforts and efforts of Barbados to establish itself as an offshore location are hard to miss and the location can be a real alternative for your planning. If you have any further questions, we are happy to help!