Offshore account in Switzerland

Tax-free savings in Switzerland

Offshore company and account in Zürich €1,600.00

1. What is offshore banking?
2. Who are our co-operative partners and what are their rates of return?
3. How do our co-operative partners work with your investments?

What is offshore banking?

Offshore banking is a term for all bank transactions conducted outside of your homeland. Offshore banking is most often associated with bank transactions in tax havens like  Luxembourg and Switzerland, which are more often than not chosen by people who wish to have investment accounts. The objective is to avoid taxation on interest income and gains on shares which are highly taxed in Europe. The countries we work with all have bank secrecy. This means that there will be no exchange of information between the public authorities in your home country and the country in which your account is held. Persons physically residing in an EU country, and have a bank account in, for example, Switzerland shall pay tax deducted at source. The tax deducted at source is 15% for the first 3 years; thereafter, the tax increases to 20%, and finally, to 35% in 2011. One way to circumvent this is by establishing a company outside EU and make investments through this company.

Who are our co-operative partners and what are their rates of return?

We have been working closely with an individual asset managing company, which, through its co-operation with major international and well-known banks such as Nordea and Deutsche Bank located in Luxembourg and Switzerland, has helped investors get a little bit more for their money.
The company has specialized in asset management and active portfolio monitoring. Asset management is conducted on the basis of a thorough, customized review of a client’s risk profile. Gearing (borrowed money) is often used, and this does not necessarily inflict a higher risk on the client’s portfolio.

Historical rates of return in figures

Year :	Rate of return in % :
2001	18%
2002	32%
2003	28%
2004	22%
2005	21%

How do our co-operative partners work with your investments?

It is very difficult to describe the exact co-operation with you. Often, there will be very close contact with you so that you will always have a good sense of what is currently happening in the markets. Since all investments are individualized, it is difficult to provide a sample of a specific investment, but this can be one example:
For instance, a customer has DKK 2,000,000 which he wishes to invest. He can choose from several starting points, but if he wants a low risk, yet he does not wish to receive just 1% rate of return per annum, he can work with borrowed capital. This is done in the following way:

Own capital	2,000,000
Borrowed capital	2,000,000	(1 time gearing)
Total amount available for investments	4,000,000

We have now established a loan of DKK 2,000,000. We can choose to borrow this amount in many different currencies, but the idea is to choose a stable currency with a low interest rate. This could, for example, be CHF (Swiss Francs). The interest rate on CHF will be approximately 2.25% per annum. The cost of borrowing the DKK 2,000,000 will then be (2,000,000 * 2.25%) = DKK 45,000, but we will also earn some interest income. Naturally, the income highly depends on which bonds one purchases and will fluctuate between 5% - 9% in portfolios which are cautious and risky respectively. An average interest rate of approximately 7% is not inconceivable. This will give us an interest income of 4,000,000 * 7% = 280,000 per year. In other words, we will have a net return of (280,000 – 45,000) = 235,000 or (235,000/2,000,000) = 11.75%.

This rate of return can be higher or lower -- lower, if the CHF that we have borrowed increases or if our fond portfolio falls in value due to fluctuating exchange rates. However, the likelihood of losing more than, for instance, 10% of our investment is very low (then we would have to lose both our return of 11.75% , plus a further 10% = 21.75% on a bond investment), BUT rates of return can also be higher than 11.75%.

For several years past, the interest rate has fallen, thus, resulting in considerably higher rates of return (see the table above). Will this continue? No, the interest rate has fallen as much as it will at the moment, but this does not mean that extra returns cannot be achieved on our bond investments. For example, in 2005, there has been a great deal of focus on both business bonds and emerging market currencies which have provided "the extra returns" in 2005. It is still too early to predict what will happen in 2006, but for the alert investor, a return on investment can always be achieved.

How much does it cost?

Unfortunately, it is not free of charge to hold an account abroad. Typically, the costs will be somewhat like this:
Account fee DKK5,000 pr annum.
Portfolio management fee: 0.5% of the capital under management
Success fee: * 1/10 of return on investment over 10%
Bond trade: 0.15% - 0.5%
Share trading: 1% (+ external expenses)
*If your return on investment exceeds 10%, a success fee of 1/10 of the return above 10% (for example, 11% of 1,000,000 = 110,000) is calculated. The amount exceeding 10% is 10,000 and 1/10 of this is 1,000 DKK.

offshore company for investing in Switzerland and introduction to a Swiss bank

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Offshore investment account in Switzerland

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Swiss Tax-free savings

Nominee

Nominee directors and owners assure your anonymity in all types of companies, and there are a number of documents that ensure your ownership status.

Nominee director - the nominee director is the actual director in the company. When you buy the company from us you receive an undated notice and a declaration of intent from the director, so that you at any time can replace your director without any problems.

Nominee owner - the nominee owner is the actual owner of your company, and to protect your assets you receive a declaration of trust that combined with a General Meeting protocol to your bank appoints you as the only person authorised to bind your company. Depending on the bank you work together with the nominee owner also signs a power of attorney declaration to the bank, which may be worded like this:

General Power of Attorney
– with a comprehensive general power of attorney issued by the nominee director; with that you can yourself open new bank accounts and issue new powers of attorney according to demand.