Gaining Onshore Use of Your Offshore Money in an NZOFC

An excellent place to set up an offshore account is with an NZOFC (New Zealand Offshore Financial Company) in New Zealand. The typical intent of depositing money in an NZOFC is to let it stay there and grow. However, if the depositor needs a short term bridge loan for his business or for personal reasons he can tap into his offshore funds by way of a loan. By obtaining a loan the individual or company does not withdraw his offshore funds and will simply pay back the loan in time. Here we discuss the practical aspects of gaining access to and use of monies that an individual or company has previously deposited offshore without disrupting the initial plan of growing assets offshore. We also discuss the issue of not triggering any “red flags” in obtaining this loan.


A New Zealand Offshore Financial Company is an entity licensed in democratic and politically stable island nation of New Zealand in the South Pacific East of Australia. An NZOFC is not a bank in that it is set up under a set of laws separate from New Zealand banking law. However, an NZOFC offers a full set of banking services including taking deposits, offer certificates of deposit, making loans, transferring money, offering trust services, providing credit and debit cards, and more. An NZOFC can be a good choice for offshore banking services as its structure may well provide more flexibility in dealing with the needs of its clients than regulated banks. New Zealand is an English speaking country whose laws stem from British Common Law. An individual wishing to do business offshore, bank offshore, or simply take advantage of various asset protection features of moving assets offshore can use an NZOFC as part of an overall offshore asset protection solution.

Obtaining a Loan Based on Your Assets in an NZOFC

In theory any money you bank anywhere in the world is yours and you ought to be able to set up a short term loan at a couple of percent over the rate you are getting on your deposits. In practice there are some high tax jurisdictions that consider having your own bank account offshore provide you with a loan as being illegal. There are two methods of obtaining a loan and avoiding problems with taxing authorities and others onshore. These are to borrow from the bank instead of directly from your own account or to set up a trust structure as a self established entity.

Setting up a loan brokered by the NZOFC may be the simpler solution to this dilemma. In this instance the depositor will put part of his assets in a certificate of deposit and will then obtain a loan, typically at a couple of percent over the rate that the CD pays. There is typically nothing wrong with borrowing money from any bank anywhere in the world that will bother any authority in any high tax jurisdiction. Thus, this is a potential solution to obtaining a loan based upon your own money.

The other solution requires another offshore legal vehicle, a trust. Such a self establish entity can legally make a loan to the individual in question and the individual can accept it. The important part of this is to properly set up the trust as well as the NZOFC account using competent counsel to begin with. In general having competent counsel will help in all matters of dealing with finances offshore.

There are many offshore jurisdictions and many offshore legal vehicles such as bank accounts with an NZOFC, international business corporations licensed in Belize, Panama Private Interest Foundations, and trusts back in New Zealand. The original intent of the individual setting these up will be best served by setting up the total package properly at the start. Thus access to offshore money via a loan will also be easier.

Source by Geir Holstad