Get the land use of your money abroad in a NZOFC

An excellent place to set up an offshore account is with a NZOFC (New Zealand Offshore Finance Company) in New Zealand. The typical intention of depositing money in a NZOFC is to let it stay there and grow. However, if the depositor needs a short-term bridging loan for business or personal reasons, they can access their offshore funds through a loan. By taking out a loan, the individual or business does not withdraw their funds offshore and will simply repay the loan on time. Here we discuss the practicalities of gaining access to and use of money that an individual or company has previously deposited abroad without disrupting the initial plan to increase offshore assets. We also discussed the issue of not triggering any “red flags” to get this loan.

A NZOFC

A New Zealand Offshore Finance Company is an entity licensed in the democratic and politically stable island nation of New Zealand in the South Pacific East of Australia. A NZOFC is not a bank in the sense that it is established under a separate set of laws from New Zealand banking law. However, a NZOFC offers a complete set of banking services including receiving deposits, offering certificates of deposit, granting loans, transferring money, offering fiduciary services, providing credit and debit cards , and more. An NZOFC can be a good option for offshore banking services, as its structure can provide more flexibility to serve the needs of its clients than regulated banks. New Zealand is an English-speaking country whose laws are derived from British common law. An individual wishing to do business abroad, conduct offshore banking, or simply take advantage of the various asset protection features of moving assets abroad can use a NZOFC as part of an overall offshore asset protection solution.

Get a loan based on your assets in a NZOFC

In theory, any money you deposit anywhere in the world is yours and you should be able to set up a short-term loan at a couple of percent above the rate you’re receiving on your deposits. In practice, there are some high-tax jurisdictions that consider having your own offshore bank account giving you a loan to be illegal. There are two methods to obtain a loan and avoid problems with the tax authorities and others on the ground. These are to borrow from the bank rather than directly from your own account or to set up a trust structure as a self-settled entity.

Setting up a NZOFC-negotiated loan may be the simplest solution to this dilemma. In this case, the depositor will put some of their assets into a certificate of deposit and then take out a loan, usually at a couple of percent above the rate the CD pays. There is generally nothing wrong with borrowing money from any bank anywhere in the world that upsets any authority in any high tax jurisdiction. Therefore, this is a potential solution to get a loan based on your own money.

The other solution requires another offshore legal vehicle, a trust. Said self-established entity can legally make a loan to the individual in question and the individual can accept it. The important part of this is to properly set up the trust as well as the NZOFC account using a competent attorney to begin with. In general, having a competent attorney will help in all matters related to offshore finance.

There are many offshore jurisdictions and many offshore legal vehicles, such as bank accounts with a NZOFC, international business corporations licensed in Belize, Panama private interest foundations, and trusts in New Zealand. The original intent of the person setting them up is best served by setting up the entire package correctly from the start. Therefore, access to offshore money through a loan will also be easier.