Is it the end of financial privacy thanks to Common Reporting Standard (CRS), FATCA and other new laws? Can a Bulgarian foundation help you?
Back in the day, financial privacy was considered a basic human right but, with the rise of cross-border terrorism, tax evasion and money laundering, the major governments of the world are fighting to bring transparency to international financial transactions. This is a noble cause and we all support it. But due to this issue, the law-abiding citizens are at the risk of their privacy being invaded. The never-ending leaks from major banks are a new challenge and do not seem to stop.
Are there any alternatives for those who believe in their right to financial privacy?
As per the old rule of English law, “Everything which is not forbidden is allowed”. But this maxim is out of favour now. The new rule to follow is “Only what is explicitly allowed is not forbidden”. Offshore companies, even when legal, are looked at with suspicion. With each new leak, even law-abiding citizens with legal interests in offshore companies are questioned and harassed. A mere presence of a Swiss account is considered as a proof of guilt. Every financial transaction with the Alpine country is under the scanner. Apart from this, many governments are actively paying employees of big banks to steal personal data of customers.
Is there a legal substitute? What can a lawful taxpayer do to secure his privacy and his assets? One point is evident – All his activities should be must be 101% legal. Even a hint of illegal activities will backfire when the next leak comes out or when the next new cross-border agreement is signed for information exchange.
The most straightforward solution would be setting up a nominee. But, under the most recent legislative measures, CRS, FATCA and others, nominees will have to declare the real beneficiary. In most situations, this will work and the investor’s privacy is maintained to a certain extent. But, in some cases, it is not acceptable. Disclosure agreements and information exchange programs, mixed with negative national regulations may cause rather severe repercussions. Our experts can help you consider your individual tax situation and suggest if the nominee structure is useful in your specific situation.
Another possibility is establishing a private foundation under Bulgarian law, which allows many benefits. Apart from achieving full legal compliance, you can avoid any controversial nominee arrangements. While we cannot mention all the benefits here, Asset Protection is the first benefit you can enjoy. The assets of the foundation are not owned by any shareholder or owner (as opposed to a Limited Liability Company – LLC). Thus, they are so they are not subject to any “confiscation” measures.
The Bulgarian law on foundations is flexible and when creating the articles, there are numerous ways to guard and protect the foundation’s holdings. The Bulgarian law clearly distinguishes the Foundations from Commercial entities and is governed by a separate law.
While setting up the Foundation, it is important to create it with clear goals of ensuring asset protection, privacy and tax requirements.
Please contact us for more details and individual evaluation of your financial needs and the appropriateness of Bulgarian foundation.
TO HELP YOU SET UP YOUR BULGARIAN FOUNDATION AND ENJOY FINANCIAL PROTECTION, PRIVACY, LOW TAXES AND TRANSPARENT ADMINISTRATION, WE OFFER YOU THE FOLLOWING:
- Bulgarian Foundation formation is perfect for holdings and privacy protection. All incorporation papers are individually created to suit your particular needs. The registration processes are conducted by an accredited attorney, guaranteeing your ultimate legal security;
- Articles of incorporation, deed of donation, minutes of first meeting, selection of governing body and beneficiary and all other prescribed documents and declarations prepared in both Bulgarian and English. We can also prepare it in another language if desired.
- All government registration fees.
- Preferred bank introduction and account opening;
- The business office registered in prestigious central Sofia district.
- Comprehensive tax and legal counsel on reporting problems to satisfy the client’s privacy expectations;
- Business mail management.