Offshore zones ― including popular jurisdictions such as the Cayman Islands, Bermuda, the Isle of Man, Guernsey and Jersey ― are establishing new requirements for residents: companies will be required to open real offices and hire employees. As a result, the costs of an offshore company will be comparable that of a European one.

The new rules will not affect all companies registered as offshore, but only tax residents from such spheres as:

• finance and banking,
• insurance,
• leasing,
• shipping,
• intellectual property management,
• holding businesses,
• distribution and service centers.

The requirements for new companies will come into effect on January 1, 2019, and companies already registered must open offices and hire employees by July 1, 2019. Violators of the new requirements will be fined and even removed from the register of companies.

Source: RBC