Global tax transparency is changing how family offices choose where to hold their wealth, according to a new edition from MarketCurrents. The Panama Papers in 2016 and the more recent Paradise Papers have both put offshore jurisdictions under a bright spotlight.
Wendy Connett, Editorial Director at MarketCurrents, noted that ultra-high-net-worth families usually work across several jurisdictions. That is because their members and assets are spread around the world.
Tax efficiency is only one factor, though. When a family picks an offshore jurisdiction, it also weighs the holding structures on offer. Specialized insurance, regulatory regimes and other services built for wealthy families play a part as well.
Since wealth in China keeps growing, this edition also examines how Chinese high-net-worth families think about taxes and jurisdictions. In addition, it profiles two popular offshore centers, Guernsey and the British Virgin Islands.
Sumehr Sondhi, Managing Director at MarketCurrents, said the report draws on strong insights from senior executives and family offices in different parts of the world. Several forces are at work, he noted, including Brexit, tax changes in the US and the largest wealth transfer yet, which is about to begin. As a result, he expects the report to give family offices a solid framework for what lies ahead.
