• Home
• About Us
• Requirements
• FAQ
• Testimonials
• Contact

Foreign investment in Spanish users: Offshore International Trade

It is necessary to remove the aura of mystery and possible illegality to offshore operations. It is not just businesses that are forced to make financial transactions abroad. Any professional with international interests include the use of these banking services not only helpful but necessary, as well as any saver or investor wishing to establish a fund for retirement. As seen above, many people, without being aware of it, are investing or have been investing in tax havens through their pension funds or retirement.

Many companies in our country, financial and nonfinancial operate abroad through offshore jurisdictions. The internationalization of the Spanish economy has led many institutions to increase and diversify their activities abroad, seeking more exports and business bases in other countries.

The Spanish business world has increased in recent years their presence offshore. Its objectives are to raise funds, make investments and carry out their activities obtaining maximum benefit with lower restrictions with the highest legal and tax savings. Examples are the buying or investing in other companies or joint ventures with other companies in other countries are made through offshore territories to invest in more security and profitability in a third country in development, for example in Latin America. The large flow of Spanish investment in Latin America usually follow a scale in the offshore territories of the Caribbean. Some companies have no choice but to resort to tax havens for tax savings that could compromise their profits in a global economy increasingly competitive. At other times, it is the protection of assets against threats of nationalization or confiscation. In the normal business use, these operations are always tax-transparent, made with funds that have already fulfilled their tax obligations, relying on the free movement of capital. In this situation, the offshore centres operate as legitimate tools of foreign investment.

It is not only private individuals or companies, but public companies like FOCOEX (a company for the promotion of exports and foreign trade) have used their foreign operations, companies based in tax havens like Panama. Another case is that of the Generalitat Valenciana, through a public company, invested in the Cayman Islands 1,600 million pesetas (nine million six hundred thousand euros) in financial products offered by the Bank of Urquijo. Countries like Cuba have put huge amounts of dollars in Switzerland.

Individuals and Spanish companies are major users of offshore territories, in view of the numbers of reported transactions outlined above. More than half of these investments by banks, insurance companies and financial brokerage companies that allow other companies or they put on the market-based investment funds tax havens.

The individual profile is that of a big businessman or a professional with high income. Traditionally, Spanish diplomats have been users of these services. In recent times, they have joined the expatriate who works in a multinational or an international organization.

Every day, Spain has more high-level expatriates, with good salaries, who are born users to offshore services. Expats get their wages in other countries and are not subject to Spanish tax laws or may not state it if they take the appropriate measures. In this situation, they are in the best conditions to take advantage of the benefits of offshore services. Many times they get their salary or income received by banks and accounts located in low tax territories.

 Also a resident status in one country may allow tax savings even greater, since many countries wish to attract highly qualified residents to work and develop steps to do so. Recently, the Spanish government also has set advantageous standards for foreign professionals coming to reside in our country.

Another source comes from individual users with high net worth. In Spain the number is growing every day people who have a net worth to invest more than EUR 120,000. They are potential clients of private banks and the international investment and asset management. The offshore investment adds an extra return and international investment opacity to a person or company.

The Spanish user starts at nearby tax havens in Europe (Andorra, Gibraltar, Luxembourg, Channel Islands and Switzerland). The cash transfers are to be sophisticated to the creation of companies and capital movements.

The Spanish customer can start these offshore activities from home, mail or Internet, through a bank and through professional firms of tax advisers and investment advisers.

Banks around the world, including our country, have branches or companies acting as such in the most important places.

Home