The offshore world and Spain - Windram Miller and Company SL

The use of different jurisdictions in a corporate - or even unincorporated - structure is quite normal and entirely legitimate when done for legitimate purposes. When those jurisdictions are low-tax or no-tax countries (sometimes called "tax-havens", or by Spanish law "fiscal paradises") they are popularly described as "offshore".

Windram Miller & Company is familiar with the offshore world, and has many clients for whom such jurisdictions are included in their business, asset-holding, or service structures.

General

There is much myth and mystique about the use of offshore jurisdictions and, it has to be said, a great deal of misapprehension. The use of "an offshore arrangement" is often thought, anecdotally, somehow to save taxes. Of course, in some circumstances it may do so. Poor advice and execution, however, may not only ultimately fail to achieve that objective, but may in fact cause tax to bite even more ferociously and from unexpected quarters. Most of the developed world's tax systems have mechanisms for negating the simple "now-you-see-me, now-you-don't" style of structure, as well as many of the more apparently sophisticated schemes. Poor structures may cause a simple personal tax liability to transform into an extremely complex tax liability at high compliance cost together with other, entirely unanticipated, liabilities some of which can even result in a prison sentence for the unfortunate client (and sometimes his advisor also).

The use of offshore jurisdictions in a structure may be likened to employing a boxful of sophisticated tools, which also, however, can cause severe damage in the wrong hands. By contrast, in the right circumstances and with accurate use, these powerful tools can produce beneficial results. Windram Miller & Company can provide knowledgeable analysis and advice, and can execute that advice for clients.

All clients should note that considerable personal information and references will be required in order that the company manager may comply with the "know your client" requirements imposed by licencing authorities.

Spain

Offshore companies are often employed in structures for Spanish residents or Spanish-sited assets. Since the early 1990s, Spain's tax laws have taken a fairly aggressive view of the use of "paraisos fiscales". An extensive knowledge of both the offshore world and of Spain's law and practice is essential to accurate decision taking in this field. Windram Miller & Company can provide this.