One of the trickiest questions is how to move large amount of money abroad. Sure, you can wire transfer large lump sum of money to tax haven, but then authorities will know that you own that money and that you moved it abroad. If you paid your taxes, that shouldn’t be a problem. But what if you don’t want anybody to know that you own that money and that you store it offshore. You also can’t physically move large amount of cash, as it is illegal, to do so. So, what are the steps to relocate your funds.
First, choose a tax haven, which is the most convenient for you to store money. Choose tax haven, which have solvent banks, with sound systems. There are many jurisdictions world wide and surely you can find one which fits you most.
Second, once you have chosen tax haven, you can set up company or a trust, or buy a ready-made company. Experienced professionals can help you to decide, which option is the best for your strategy. If you buy shelf company, it can be approved in as little as three days for a nominal fee. If you want to add another layer of secrecy, you can park cash in a private foundation, which can then own a corporation.
Third, chose nominees to run business for the company or trust. With doing so, you add yet another layer of secrecy, as it protects your identity. Nominees don’t get to manage your money directly, but act on your behalf. Company documents will show their identity instead of yours, making it hard to identify you as an owner, should you be pursued.
Fourth, open offshore bank account. To add extra layer of secrecy and protection, you can open offshore company in one jurisdiction and bank account in another jurisdiction.
Fifth, transfer your cash. You can do so in one large lump sum, but as stated before, authorities will know that you moved the money and that you own offshore account filled with that money. What tax evaders do (not advisable) is to smuggle cash or make a transfer wire under the reportable 10.000$. They do so as many times as required. What tax evaders also do (not advisable) is to let shelf offshore company or person sue them and after they “settle” out of court for a specific amount and have the reason to move a large lump sum to an offshore company. Finally, you can make (your) offshore company get you bill for services or goods and you pay for this through wire transfer. It is hard to tell if this is tax evasion or not, since you legally buy services or goods and legally pay to an offshore entity. But of course if you sell kilogram of bananas for 1M$ it is clear tax evasion (not advisable).
There are many legal ways to move your cash to tax haven, having it protected and under secrecy. Don’t be a fool and do it illegal, as sooner or later you can get caught. On the other hand if you move your cash legally, store it in an offshore bank account, it will give you a peace of mind that your hard earned cash is safe and protected.