Laws on economic conditions and their impact on offshore companies

Offshore jurisdictions and the economic situation have undergone significant changes in recent years: some jurisdictions are losing relevance, while others are introducing new requirements for transparency and reporting. This has created a new economic environment in which businesses must take into account global reforms, changing regulation and increased scrutiny when choosing an offshore structure.

Regulation of offshore jurisdictions: global trends

Recent years have been marked by an unprecedented strengthening of control over offshore companies.

The implementation of BEPS (Base Erosion and Profit Shifting) initiatives under the auspices of the OECD, the launch of the global minimum tax (Pillar Two), the spread of CRS (Common Reporting Standard) and the tightening of FATF (Financial Action Task Force) standards: all of this is shaping new rules of the game.

Companies are required to comply with international reporting standards and provide data for the automatic exchange of tax information between countries.

COREDO’s practice confirms: today it is not enough to simply register a company in an offshore jurisdiction.

Comprehensive compliance is required: from the implementation of AML procedures to regular compliance monitoring and preparation for Due Diligence by banks and regulators.

For example, for a client planning international trade through an offshore jurisdiction, the COREDO team designed a corporate structure complying with substance requirements and the global minimum tax, which allowed avoiding inclusion in blacklists and preserving access to banking services.

Impact of the economy on offshore jurisdictions

Economic conditions directly affect the attractiveness of offshore zones.

A number of jurisdictions, from the BVI and Gibraltar to the UAE, have revised their tax regimes, tightened corporate transparency requirements and moved to partially open beneficial ownership registers.

Today “white” jurisdictions with transparent corporate structures and beneficiary control are becoming the standard for international business.

The solution developed by COREDO for an EU client included the choice of jurisdiction with low tax rates and an open register, which increased the company’s investment attractiveness and minimized sanction risks.

Thus, new rules and trends in the offshore market highlight the importance of sound tax planning and require consideration of the international aspects of offshore taxation.

International taxation of offshore jurisdictions

Illustration for the section «International taxation of offshore jurisdictions» in the article «Laws on the economic situation and their impact on offshore companies»

International taxation of offshore jurisdictions is constantly changing under the pressure of new global requirements and tightening legislation.

Companies using offshore jurisdictions to optimize taxes face the need to take into account increasing requirements for economic substance and structural transparency.

New requirements for economic substance

In 2025, most offshore jurisdictions tightened requirements for economic presence (substance requirements).

Companies are required to establish a real office, hire employees and keep financial records in the country of registration.

Our experience at COREDO has shown that ignoring these requirements leads to the loss of tax benefits, account blocking and inclusion of the company in the blacklists of the EU and the OECD.

For a holding client conducting international expansion through offshores, the COREDO team implemented a comprehensive adaptation of the corporate structure: real offices were organized, due diligence systems were implemented and reports were prepared according to international standards.

AML and KYC – what are they and how do they differ?

implementation of AML procedures and KYC (Know Your Customer) have become mandatory for all offshore structures.

Failure to comply with compliance due diligence requirements may result in fines, account blocking and loss of access to international payment systems.

COREDO’s practice shows: effective implementation of corporate AML procedures requires integration of automated compliance monitoring systems, employee training and regular audits.

In one case the COREDO team helped a client from Singapore implement an AML platform, which allowed them to pass the FATF review and maintain the financial security of the business.

Thus, modern anti-money laundering requirements are directly related to issues of transparency and the exchange of information on beneficial owners, which the next section is devoted to.

Financial exchange and disclosure of beneficial owners

The CRS system and international data exchange agreements require automatic disclosure of information on corporate beneficial owners.

In 2025, requirements for protecting beneficiary confidentiality were tightened: now most jurisdictions require not only disclosure but also confirmation of beneficiaries’ control via LEI (Legal Entity Identifier) and regular reports.

The COREDO team implemented a beneficial owners confidentiality protection strategy for an EU client, using trust structures and legal mechanisms compliant with international standards.

Offshore jurisdictions: how to choose in 2025

Illustration for the section «Offshore jurisdictions: how to choose in 2025» in the article «Laws on the economic situation and their impact on offshore companies»

Offshore jurisdictions continue to be a key tool for international business, especially amid the changing requirements of 2025. To choose the optimal direction, it is important to understand the differences between jurisdictions and consider their advantages and regulatory specifics. The following sections compare the best offshore zones and analyze their key characteristics.

Best offshore zones: comparison

Jurisdiction	Tax rate	Requirements for substance	Openness of registries	Sanctions risks	Attractiveness to investors
BVI	Low	Medium	Partially open	Medium	High
Georgia	Low	High	Open	Low	Medium
Gibraltar	Medium	High	Open	Medium	High
UAE	Zero/low	High	Closed	Low	High

COREDO’s practice confirms: the choice of jurisdiction should take into account not only tax rates, but also substance requirements, registry openness and sanctions restrictions.

For a client focused on international trade, the COREDO team conducted a comparative analysis of zones, identified risks and proposed the optimal solution: registering a holding company in the UAE integrated into global supply chains.

How to choose an offshore jurisdiction

Key criteria:

tax incentives for foreign investors
Compliance and access to banking services
Reputation of the jurisdiction and legalization of offshore companies
Ability to open a corporate account and integration into international tax information exchange agreements

The COREDO team provided legal support for the registration of offshore companies for a client from the United Kingdom, ensuring the transparency of the corporate structure and preparation for international tax information exchange.

Offshore business: how to structure and manage

Иллюстрация к разделу «Offshore business: how to structure and manage» у статті «Законы об экономической конъюнктуре и их влияние на оффшорные компании»

Offshore business today is seen as an effective tool for optimizing a company’s structure and managing it at the international level. Proper structuring allows using offshore entities for asset protection, tax optimization and achieving maximum flexibility in business management.

Offshore for international trade and holding companies

Structuring a holding company is an effective tool for tax optimization and asset protection.

The COREDO team developed a corporate structure for a client from the Czech Republic integrated into global supply chains, which minimized tax risks and enabled cross-border business structuring.

COREDO’s experience shows: successful integration of offshore companies requires taking into account substance requirements, international reporting standards and compliance due diligence.

Offshore trusts for asset protection

Trust structures are a key tool for asset protection and the financial security of the business.

In one of COREDO’s cases, it implemented an offshore trust for a client from Estonia, which provided asset protection from creditors and sanctions, as well as compliance with international standards.

Using trusts allows preserving beneficiaries’ confidentiality and increasing the business’s resilience to external risks.

Corporate governance and compliance

In 2025, requirements for corporate governance in offshore jurisdictions in the EU and Asia have tightened significantly.

The COREDO team implements modern compliance procedures for clients, including automated compliance monitoring, corporate reorganization and preparation for audits under international standards.

For a holding client from Slovakia, strategic planning of offshore structures was implemented, which increased corporate transparency and reduced risks.

Challenges and risks for offshore companies in 2025

Иллюстрация к разделу «Challenges and risks for offshore companies 2025» у статті «Законы об экономической конъюнктуре и их влияние на оффшорные компании»

Challenges and risks for offshore companies in 2025 are becoming increasingly relevant against the backdrop of global regulatory changes, tightening transparency rules and increased international pressure. New requirements for business structure, reporting and economic presence seriously affect companies’ strategies and pose complex tasks for them, especially in conditions of sanctions and reforms.

Impact of sanctions on the economy and reforms

Sanctions restrictions and global tax reforms are the main challenges for offshore structures in 2025.

The solution developed by COREDO for a client from Dubai included adapting the corporate structure to the new OECD requirements, which allowed avoiding tax risks and preserving opportunities for international expansion.

COREDO’s practice confirms: timely adaptation to global reforms is the key to maintaining the effectiveness of offshore solutions.

Risks of registering an offshore company

Typical mistakes entrepreneurs make:

Ignoring substance requirements
Insufficient preparation for compliance due diligence
Choosing the wrong jurisdiction
Lack of strategic planning

The COREDO team regularly audits clients’ corporate structures, identifies risks of offshore operations in the EU and Asia, and offers risk management solutions.

Practical recommendations for business

Иллюстрация к разделу «Practical recommendations for business» у статті «Законы об экономической конъюнктуре и их влияние на оффшорные компании»

Practical recommendations for business are more relevant than ever: under new requirements, companies face the need to quickly adapt and build sustainable processes. The following points will help prepare the business for changing standards, ensuring growth and minimizing risks.

How to prepare the business for new requirements

Step-by-step checklist from COREDO:

Assessment of the economic feasibility of offshore solutions
Choosing a jurisdiction taking into account tax incentives, compliance and sanctions risks
Implementation of substance requirements: setting up an office, hiring staff, maintaining reporting
Implementation of AML/KYC procedures and compliance monitoring
Preparation for international tax information exchange
Strategic planning of offshore structures and asset protection through trust mechanisms
Interaction with banks and regulators: preparation of corporate documentaincluding opening bank accounts and undergoing due diligence

The COREDO team supports clients at all stages, ensuring the legal and financial security of the business.

Key takeaways for businesses

In 2025 the economic situation and offshore laws require a review of corporate strategies.
The effectiveness of offshore solutions depends on compliance with substance requirements, the transparency of the corporate structure, and the implementation of modern compliance procedures.
The new challenges for offshore companies are not only risks but also opportunities for scaling the business, protecting assets, and optimizing taxes.
COREDO’s practice shows: strategic planning, legal support, and adaptation to international standards are the key to long-term success amid global reforms.

If you want to prepare your business for new requirements, integrate an offshore company into international chains, and ensure financial security, the COREDO team is ready to offer solutions proven by experience and confirmed by international practice.