| With the growing demand for professional consultants to work outside their usual country's of residence there is often the possibility of greatly reducing or even eliminating individual and corporate tax consequences - often using offshore companies. |
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The reason that this possibility arises is that it is often possible to legally extricate oneself from the tax system of ones home country for a fiscal year or more. During this expatriate period it may then be possible to avoid the tax system(s) of the chosen host jurisdictions by limiting ones period of residency in any given country to between 4 and 6 months. These being the normal European 'breathing' periods before full local tax obligations exist. The purpose of the offshore company is to provide a fiscally beneficial entity to issue necessary invoices, register for VAT (possible in the Isle of Man) and/or act as a controlling vehicle for future 'home' country remittances
