Offshore Tax with HTJ.tax

In this episode, we explore the General Anti-Abuse Rule (GAAR) introduced in Cyprus under the EU’s Anti-Tax Avoidance Directive (ATAD). The GAAR serves as a broad safeguard against aggressive tax planning that may fall outside specific anti-avoidance rules like transfer pricing, CFC, or interest limitation provisions.

We break down how Cyprus applies the GAAR to non-genuine arrangements, what counts as “economic reality,” and how th...

In this episode, we unpack Cyprus’s Controlled Foreign Company (CFC) Rule — a key anti-avoidance measure that ensures profits shifted to low-tax jurisdictions remain subject to taxation where real economic activity occurs.

We explain how Cyprus applies its CFC rule under the EU Anti-Tax Avoidance Directive (ATAD), what counts as a “non-genuine arrangement,” and when exemptions apply.

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In this episode, we break down Cyprus’s Interest Limitation Rule (ILR) — a cornerstone of the EU’s Anti-Tax Avoidance Directive (ATAD) framework.

The rule is designed to curb profit shifting through excessive interest deductions and ensure Cyprus remains a transparent, compliant, and competitive jurisdiction.

We’ll explain how the 30% EBITDA cap works, what the main exemptions are, and how businesses can manage compliance effectively...

In this episode, we explore Cyprus’s new defensive tax measures targeting payments to low-tax and EU-blacklisted jurisdictions, set to take effect from 1 January 2026.

These measures mark a major compliance shift, aligning Cyprus with OECD and EU anti-tax avoidance standards while fulfilling commitments under the EU Recovery and Resilience Plan.

We’ll break down what’s changing, how these rules apply to dividends, interest, and r...

In this episode, we unpack Cyprus’s Non-Domicile (Non-Dom) tax regime — one of the most strategic tax residency options in Europe for high-net-worth individuals. Introduced in July 2015, this regime continues to position Cyprus as a compliant, transparent, and highly attractive jurisdiction for international relocation and wealth structuring.

We’ll explain what it means to be a “non-dom,” how to qualify, and the real tax advantages ...

In this episode, we break down Portugal’s newly updated list of “tax haven” jurisdictions for 2025, which now excludes Hong Kong, Liechtenstein, and Uruguay. These updates reflect Portugal’s ongoing effort to align its tax transparency framework with OECD and EU standards, while maintaining one of Europe’s more comprehensive blacklists.

We explore what this means for investors, companies, and advisors working with Portuguese structu...

In this episode, we break down Portugal’s newly updated list of “tax haven” jurisdictions for 2025, which now excludes Hong Kong, Liechtenstein, and Uruguay. These updates reflect Portugal’s ongoing effort to align its tax transparency framework with OECD and EU standards, while maintaining one of Europe’s more comprehensive blacklists.

We explore what this means for investors, companies, and advisors working with Portuguese structu...

In this episode, we explore how U.S. investors are using Self-Directed IRAs (SDIRAs) to participate in Golden Visa programs across Europe — particularly in Portugal, Greece, and Hungary. While these structures offer exciting possibilities for diversification and residency planning, they also introduce significant IRS compliance risks and potential UBIT/UBTI exposure that many investors overlook.

We unpack the intersection between U....

The Wyden Draft Bill, formally part of the Modernization of Derivatives Tax Act discussion, poses a potential existential threat to the Private Placement Life Insurance (PPLI) industry. While 2025 has been dominated by discussions around the One Big Beautiful Bill Act (OBBBA), it’s crucial to revisit 2024’s legislative developments, particularly Senator Ron Wyden’s draft proposal, which could fundamentally alter the tax treatment o...

The One Big Beautiful Bill Act (OBBBA) represents one of the most significant shifts in U.S. international tax policy since the 2017 Tax Cuts and Jobs Act (TCJA). By transitioning from the Global Intangible Low-Taxed Income (GILTI) regime to the Net CFC Tested Income (NCTI) system, Congress not only simplified the rules—but also brought the U.S. statutory rate on international income closer to global standards under Pillar Two.

In t...

When the Tax Cuts and Jobs Act (TCJA) repealed section 958(b)(4) back in 2017, it unleashed chaos across the cross-border tax landscape. The repeal allowed downward attribution from foreign to U.S. persons — causing hundreds of unintended Controlled Foreign Corporation (CFC) classifications and widespread compliance headaches.

Now, with the One Big Beautiful Bill Act (OBBBA) of 2025, section 958(b)(4) is finally restored — and a new...

The One Big Beautiful Bill Act (OBBBA) quietly rewrote one of the most consequential areas of U.S. international tax — rebranding GILTI (Global Intangible Low-Taxed Income) as NCTI (Net CFC Tested Income).

But behind the name change lies a profound policy shift: from a hybrid territorial system to a quasi-worldwide model designed to align—at least cosmetically—with the OECD’s global minimum tax.

In this episode, we unpack what really...

In 2024, headlines screamed of a millionaire “exodus” from the UK and other countries—10,900+ news pieces carried the story. The supposed flight of the rich was even credited with pressuring the UK Labour government to soften tax reform plans.

But here’s the catch: the narrative rests almost entirely on a single report from Henley & Partners, a firm that sells residence-by-investment schemes.

A review by the Tax Justice Netwo...

When does technical advice cross into criminal risk—and how can advisors protect themselves?

If an advisor tells a U.S. client:

“Yes, Svalbard’s unique status means a financial institution there may not report to the IRS under FATCA. But this does not eliminate your personal obligations. You must still report on FBAR, Form 8938, and Forms 3520/3520-A—and failure to file carries severe penalties.”

That advice is accurate, complete,...

Can an advisor get into trouble for giving technically true—but incomplete—advice? Under FATCA, the answer is yes.

Take the example of Svalbard. Norway has a FATCA Model 1 IGA with the U.S., but Svalbard is excluded from the treaty definition of “Kingdom of Norway.” That means a financial institution in Svalbard could, in theory, be treated as a non-participating foreign financial institution.

The problem arises when an advisor u...

Owning foreign accounts or assets isn’t illegal, and it’s not inherently unlawful to fall outside FATCA’s scope. The real issue is knowing what counts as a reportable asset and making sure you’re not failing to disclose something that is covered.

FATCA is primarily an information-reporting regime. For individuals, this means filing Form 8938 (Statement of Specified Foreign Financial Assets) if the value of certain foreign assets exc...

An Expanded Affiliated Group (EAG) is defined under Code section 1504(a) and Treas. Reg. §1.1471-5(i). It generally means one or more chains of entities connected through ownership by a common parent. Normally, the parent must directly own more than 50% of another member’s stock or equity interests.

In FATCA, the EAG rules are designed to prevent avoidance of reporting obligations. The “one bad apple” rule applies—if any member of t...

Between 2017 and 2019, the OECD published FAQs and addendums to CRS to close loopholes—such as residence by investment, broad-based retirement plans, nil-value reporting on settlors, and the treatment of cash. FATCA, however, never addressed these loopholes. Eventually, the OECD abandoned the “whack-a-mole” approach and instead introduced Mandatory Disclosure Rules (MDR). But MDR was largely ineffective: few countries implemented i...

CRS and FATCA treat non-participating institutions very differently. Under CRS, non-participating Investment Entities are classified as Passive NFEs, meaning the paying agent must look through to the controlling persons. FATCA, on the other hand, penalizes non-participating FFIs that fail to register for a GIIN by imposing a 30% withholding tax on U.S.-sourced payments like dividends, interest, or asset sale proceeds. FATCA also pr...