Improved communications and technology mean that people and businesses can work and live in multiple places. This can be great for you personally but can prove tricky if you don’t know the international tax requirements.
You may be considering setting up a business overseas or have already established an international business. Often business ventures are set up without full consideration of the international tax implications for the business owners. Our international tax specialist will guide you when setting up a business overseas as well as consider the tax implications of an existing or expanding business. Specific advice will consider your goals whether profit extraction or the future sale of the international business.
International property investment has remained a popular way to diversify wealth although ownership has many complexities. Depending on where your international property investment is made you may need to consider forced heirship as well as local taxes and the double taxation agreement with the country of your residence. It may be that some of the tax and legal complexities can be simplified through an international investment structure although any structure may wish to also facilitate asset protection and/or international estate planning.
Living overseas either permanently or for part of a year is very common. Many retirees like to spend the colder months in a warmer climate and others have dreamt of permanently residing overseas during their working lives. Younger generations are more internationally focused and see career opportunities globally. There are tax implications for working, living permanently overseas or living between countries. It is likely you will need residency advice considering local rules as well as those contained within double taxation agreements. Depending on the assets you own, business interests or employment opportunities you may benefit from considering overseas tax planning.
We can provide advice on international tax with regards to:
- International property investment structures in various countries
- Investing in and setting up an offshore trust
- Mitigating UK tax while having an international business
- Your residency status
- Setting up a business overseas
- Relocating to a low tax jurisdiction while maintaining a UK business
- Holding intellectual property and licensing in multiple jurisdictions
- E-commerce trading in multiple jurisdictions
- Establishing a non-UK commercial business
- The residency status of a company for corporation tax purposes
Case Study 1: Cross-Jurisdictional Tax Planning
We were approached by a soft fruit packaging and marketing business regarding advising on the establishment of a consortium between thirteen businesses in different countries. Our remit was to identify the most suitable jurisdiction for the consortium to be established. We reviewed the legislation and tax treatment for each jurisdiction as well as the countries that they held double taxation agreements with.
We advised which jurisdictions would be more efficient for the consortium to be based from and how it needed to be established and operated.
Case Study 2: Residency Status Advice
Charles and his wife Alison had decided to leave the UK and looked to become residents in Gibraltar. They held shares in a company that operated several UK hotels. The move was driven by personal reasons such as efficient schooling of their children and leaving the UK during the exit from Europe.
We assisted with advising on:
- Personal residency status in the UK
- The ownership of the company
- Management and control of the company and its residency status for corporation tax purposes
- Provision of tax efficient management services
- Provision of services in the UK
- The establishment of non-UK commercial business
Advice was provided with the long term aim of selling the business and short term goal of ensuring UK tax exposure was legitimately managed.