Short answer: many offshore and low-tax jurisdictions require relevant entities to meet economic substance (people, decisions, spend). Pure shells may fail compliance, affecting tax residence and banking. Review company structures when relocating.
Economic Substance Rules and Offshore Structures
Written by Global Immigrate consultants · Reviewed by Oscar Yip, Founder & Managing Director
Summary
Holding and finance entities may need local people, decisions and expenditure.
FAQ
Linked to immigration?
Indirectly — affects whether companies you own can operate compliantly.
Single-person company?
May still need to show decisions occur locally.
Penalties?
Non-compliance can bring fines and information exchange.