Offshore Income Calculator
Calculate potential tax savings and net income using offshore structures. Compare different jurisdictions, currencies, and tax scenarios for optimal financial planning.
Step 1: Income Details
Tax Savings Formula
Tax Savings = Income × (Home Tax Rate – Offshore Tax Rate)
Net Income = Income – (Income × Offshore Tax Rate)
Step 2: Offshore Setup
Common Offshore Structures
• Offshore Companies (0% tax in many jurisdictions)
• Trusts & Foundations
• Free Zone Companies
• International Business Companies (IBCs)
• Limited Liability Companies (LLCs)
Offshore Income Results
Annual Tax Savings
Jurisdiction Comparison
| Jurisdiction | Tax Rate | Annual Savings | Setup Cost | Net Gain (5yr) |
|---|
Tax Savings Formula
Tax Savings = Income × (Home Tax Rate – Offshore Tax Rate)
Where:
• Income = Annual gross income
• Home Tax Rate = Tax rate in your country of residence
• Offshore Tax Rate = Tax rate in offshore jurisdiction
Net Income Calculations:
• Home Country Net = Income × (1 – Home Tax Rate)
• Offshore Net = Income × (1 – Offshore Tax Rate) – Annual Fees
• Annual Savings = Home Country Tax – Offshore Tax
ROI Calculation:
• ROI = (Annual Savings – Annual Fees) / Setup Cost × 100%
Example Calculation
Example: $200,000 income, 40% home tax vs 5% offshore tax
Income: $200,000
Home Tax (40%): $80,000
Offshore Tax (5%): $10,000
Annual Tax Savings:
$80,000 – $10,000 = $70,000
Net Income Comparison:
Home Country: $120,000
Offshore: $190,000
5-Year Savings (with $5k setup + $2k annual):
($70,000 × 5) – $5,000 – ($2,000 × 5) = $335,000
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