OVZA
New Horizons Paraguay
Ticker tape by TradingView

Newbie Question: Asset protection Holding Vs Trust

Status
Not open for further replies.
T

TheGlobetrotter

New Member
May 23, 2024
25
0
11
Hello,

I am quite new here but have been reading the forum for some time now. Still, I have not found a complete answer to my question.

I am working in a liberal - professional own company in a high liability risk industry and would like to put my further investitions in a safe place, away from the reach of someone in the unlikely situation of a law suit (the more discrete , the better)

Tax residence at the moment (not changable in the near future): Europe
The business I own now can NOT be integrated in the new structure.
Areas where the investments are planned to be made: Out of Europe (South America, Africa or eventually Asia)
Size of the investments: 7-8 figures
Type of investment: mainly Real Estate to rent, eventually to resell
Highest possible anonymity would be a big plus


Questions:
1. What form of corporation would you choose (Trust vs Holding vs ?? ) ?
2. Would you do the investments on the main company or create a 2/3 level structure (with multiple subsidiaries companies in every country of investment) ?
3. What jurisdiction would you choose ?

I do really appreciate the effort of anyone who takes the time to educate me.

Thanks
 
The holding structure is highly dependent on the jurisdiction‍ the property is based in. Some countries do not even recognize trusts so you need⁠ to check this beforehand.

If the properties you own shall be producing income then⁢ a corporate structure for each jurisdiction wholly owned by the trust is the way to︀ go.

You firstly︁ need to determine where you are buying property. Is it in a civil law or︂ common law country? This makes a difference. As civil law and common law countries can︃ interpret ownership rights in different ways.

The actual whole issue is complex and is not︄ as simple as just setting up a Caribbean or Channel Isle trust and sticking your︅ property or shares of local company holding property in it. If a trust is not︆ recognized by the jurisdiction where the property is based then you have no protection whatsoever︇ the minute a challenge is made and no one will tell you beforehand its a︈ duff structure.

P.S The setup of any structure if you use a EU agent to︉ perform it will also likely be reportable to your local tax authority since DAC6. So your EU agent has a legal obligation to provide your home country with entire︊ structure created for you. In which case your naked and tax man will decide if︋ structure is just a privacy structure or determined to gain a tax advatage. You will︌ likely get an audit and go through pain to show setup has nothing to do︍ with tax evasion etc.

https://www.offshorecorptalk.com/th...eporting-comes-into-effect-1-july-2020.29711/
 
I am confused, what’s the connection between owning a holding company⁠ and using a trust (not recognised in some jurisdictions) ?

If we go⁢ with the holding company, is it possible that some country does not allow creating a︀ local company with the holding as sole owner ?

First options would be Argentina, Panama, Colombia,︄ Peru, Chile , Brasil.

I agree it is very complex. I️ am still very baffled that I can not seem to find any lawyer / financial‌ advisor who can safely offer WRITTEN advice in a matter like this. Most of the‍ times it seems like my google research offers me better answers than them. And if⁠ I decide to use a non-eu agent, than I can not count on them being⁤ impartil because they, well, want to sell me their product. So I am back tu⁣ square one…
 
The legal form of‍ a trust may not be recognized there but a holding will be. Your topic header⁠ is "Holding vs Trust". There is no connection other than the topic header you made.⁤

https://en.wikipedia.org/wiki/Hague_Trust_Convention

Some countries may hold blacklist of tax havens and if holding company︀ is based there then could be issues.
 
Thanks for the answer.

So if you would be in my shoes and want to⁣ form a holding, what would be the jurisdiction you would choose ? thanks
 
As per my answer below taken from above. There is no one size fits all solution.‍
 
What exactly are your plans, what will the holding company "hold" or⁠ do ?

Where are you located and what is your budget to setup a proper⁤ structure?
 
The holding is going to hold properties in Latin america ( Argentina⁠ , Colombia and/or Brasil) directly or through another company (that was as well part of⁤ the question). The properties are going to be rented or eventually sold.
Budget: 7-8 figures⁣ ranges .

what would be the best jurisdiction for the holding and what would be⁢ the best jurisdiction for the operative subsidiary ?
 
Consult a Panama tax expert and get setup in Panama, that is what I would‌ do. The Holding can form a trading / investment firm anywhere that would fit to‍ your plans. Shouldn't be difficult. You don't need a trust to set this up.
 
thanks for the idea. How about the compliance ? isn t⁤ it be a problem to open an account for a company owned by a panama⁣ holding ?
 
Depends on the bank you approach for the account opening and the banking network of‌ the agent that you want to help you with the setup.
 
My advice would be to buy it through a foreign company located in‌ a jurisdiction that has an investment protection treaty with the country the property is located‍ in.

Whether you should own this company directly or through another entity will depend on⁠ your personal residence.
 
My view having read countless indictments is asset protection via any means doesn’t work unless‌ the following occurs.

You renounce citizenship
Your kids don’t have Western citizenship

Your kids have‍ medium range citizenship and passports

All transactions are routed from cash then transmitted via non⁠ western financial rails

You own none of these assets directly or indirectly

The entities at⁤ the end have owner ship or use ties to those said kids via multiple layers⁣ of non Western language contracts and physical paper not digital ties

You if you use⁢ said assets have leases / rent contracts

You are willing to go to prison and︀ die in prison to safeguard those assets into your kids ownership.

Anything else is a︁ pipe dream until a western state puts you into a legal vice and turn the︂ screws.

If however it is non Western states there’s protections with basic holding companies etc︃

Basically - own nothing and be happy
 
Status
Not open for further replies.

JohnnyDoe.is is an uncensored discussion forum
focused on free speech,
independent thinking, and controversial ideas.
Everyone is responsible for their own words.

Quick Navigation

Forums

User Menu

Login
Community platform by JohnnyDoe © 2025 JohnnyDoe
Top Bottom