Best ways for USA Citizens to access offshore markets

foodeater · #1 12-05-2008, 02:08 AM

This forum has tons of info for people who want to use offshore structures for business purposes. What about for individual purposes? I've been reading this forum and have learned a great deal; however, I have a simple question that I do not think has yet been addressed.

Specifically, what if a citizen of the USA (an individual) wants to take advantage of offshore investment options (for personal, non-commercial purposes). The USA is specifically excluded from tons of reputable offshore investment and speculative services because of its frankly idiotic laws. Of course, USA citizens have a right to own stock in foreign corporations (and this is something that will prob. not be threatened anytime too soon). In addition, as long as they hold shares and do not repatriate dividends or corporate funds, they money can legally stay free from the tentacles of the IRS for re-investment.

My question is this: For someone (an individual) who wants to have access to foreign stocks, options, futures, CFDs, betting, Forex, HYIP, etc, what is the best jurisdiction and best legal structure to use?

I think the ideal solution should be:

- simple to own and administer
- should be reputable enough to avoid guaranteed scrutiny
- should be politically stable
- should be reputable enough to be trusted by offshore banks
- should at least be resistant to fishing expeditions
- should have low or no taxes for our purposes
- other points i can't think of at the moment

In addition, I think having English as an official language is helpful (though not crucial since some non-English-speaking countries are excellent) for the sake of an individual being able to personally review laws.

I'm open to all types of structures, including trusts, corporations, limited liability forms, or whatever else a creative jurisdiction might offer.

Finally, it should not be blatantly illegal.

Again, I really appreciate this forum and thank anyone who might want to chime in, in advance.

FreedomFighter777 · #2 12-05-2008, 07:29 PM

Some U.S. people are using an offshore LLC with a jurisdiction in
on a sovereign island nation in the south pacific to access investments
with. It is very simple to use and much more simple than an IBC and taxes
can flow onto your 1040 form when you follow the rules in that regard.

It is easy to set up a bank account offshore with the LLC and you can have
a brokerage account in Asia and you can trade on 23 markets around the world and even trade CFDs which are not permitted at U.S. brokerages, and you can get a precious metals account with records held at the office in Panama while the gold is held in Switzerland. The minimum required in these
accounts is about $6,500 for the brokerage and about $5,000 for the precious
metals account. The bank accounts in the package all have low minimums with the lowest being about $500 minimum.

This is an excellent inexpensive scenario for the U.S. person who desires to
play by the rules of their government and wants to keep the expenses down.

FREEDOM

MoneyOfDoom · #3 12-07-2008, 04:08 PM

I think the basic rule is that you do your own research first, contact the banks and lawfirms directly and do the things by yourself in the beginning. There are SO MANY pitfalls in the online community in regards to offshore offers, that you can quickly get burned.

foodeater · #4 12-08-2008, 12:05 AM

Thanks for the replys guys.

FreedomFighter777, thank you for your post. I've looked at your website and what you wrote but it's not very specific. If I contact you, would you be willing to offer more info about the structure you have in mind?

MoneyOfDoom, that's the idea

This post is a small part of my overall research.

If anyone else has something to offer, esp naming specific jurisdictions for the idea in this thread, please offer what you can.

Thanks again guys!

OffshorePrivacy · #5 12-08-2008, 06:00 AM

The best and safest structure for US citizens in this case I believe would be a Panama foundation that has no owners, unlike a corporation or trust, only beneficiaries which is an important legal distinction. The foundation can either trade through an offshore brokerage itself, or in most cases, clients have the Panama Foundation own an IBC for an additional layer of protection, which then operates a Panama or other offshore brokerage account.

There are other steps you can take to further distance yourself from the corporation/bank account and brokerage legally while having advantage of complete access to it although it begins to get expensive. Only you know what is worth while.

FreedomFighter777 · #6 12-11-2008, 06:46 AM

Thought this might be a good place to interject something about a Panama
foundation and its perceived safety for U.S. people.

If the I.R.S. finds out about the Panama foundation and you are somehow
connected to it and that you transfered money to it, then they may say it is only an alter ego of yourself and declare it to be a sham structure to evade taxes and hide your experiential ownership of the assets you placed into the foundation. It could cost you.... So please be aware of this.

An offshore charitable foundation is something that can be used for tax free compounding of investment profits but it must be properly set up and used
correctly.

FREEDOM

offshorearnings · #7 12-16-2008, 12:06 AM

Another option would be an offshore annuity, or other type of insurance vehicle.

Some of these policies allow you to invest in mutual type of funds and do other self directed investing. If money is left in the policy, it's not taxable, as far as I know, until it is withdrawn.

It isn't the perfect solution for everyone, but for some it might do the trick. Minimum investment amounts might be a problem for some, as they can be fairly high.