A frequent theme of The Q Wealth Report is how you can securely generate wealth in a private, offshore, and tax-free environment… using e-commerce. You can sell products and services 24/7 around the globe, using a completely-automated online system. Profits arrive automatically in your bank account, without you having to lift a finger.

You, yourself, meanwhile, live a lower cost, higher quality and healthier international lifestyle in the paradise of your choice!

That used to be my dream when I lived back home. Now it's my daily routine. But believe me, I don't get bored with it! And I know hundreds of other people who are happily doing much the same. I'm the offshore, e-commerce expert at The Q Wealth Report.

Offshore E-Commerce could be your opportunity to live the life you dream of…. to escape from your daily routine to a new and completely different life of your choosing. "

In the US, the Economic Policy Institute published a study that found more than 40% of mid-life workers face retirement with less than half of their pre-retirement income. Social Security is insolvent, the dollar is plunging (the Euro and the Pound too, in terms of purchasing power)… so your own international, e-commerce business could be the solution.

The old American dream of spending your retirement having fun in the sun in places like Florida, Arizona, or California just isn't economically possible for a lot of people anymore. And these days, there's no need to be overtaxed in the USA when places like Panama and Belize beckon.

Best of all, you can get started in this business with almost nothing. All you need is an idea, a computer, and an internet connection. And you can run it alongside your existing job, or while managing your investments, or maybe while investing and growing money in offshore real estate. You will read the how and why of these opportunities in every issue of The Q Wealth Report.


A new business? Or adapt your existing business to Offshore e-commerce?

Some regard ecommerce as an entirely new way of doing business, while others see it as simply a new channel to market existing products or services. In practical terms, it could be either. You decide.

You can start something completely new from scratch, or probably better, you can adapt your existing business and expertise to an offshore, e-commerce model - giving you the freedom to live where you choose, on your terms, while legally paying almost zero tax!

For example, my friend Billy, a French-Canadian, is in the hotel business. He takes bookings and collects credit card payments through a website hosted in Panama for a chain of boutique hotels in the Caribbean. Most clients probably don't even know he is offshore, since their credit cards are charged in US dollars and they don't read the small print on the contract.

After making payment, they print out a voucher which they take to the hotel. All the profit stays offshore, tax-free in Panama. Billy runs the entire operation from an office in Buenos Aires, Argentina where he likes to live. Since neither Argentina nor Panama tax foreign-sourced income, and Billy is non-resident as far as Revenue Canada are concerned, he pays no income nor corporation tax anywhere. Of course, if he gets bored in Buenos Aires, he can travel anywhere in the world and still run his business from anywhere with an internet connection.

If you give the matter some more thought, you can see how this concept can be applied to any business. Both products and services can be sold online.

Other offshore, e-commerce people are better described as telecommuters, selling their skills and services over the net. Any job where you spend most of the day sitting in front of a computer can fairly easily be outsourced to any place on earth with a reliable internet connection.


The Right Jurisdictions for Offshore E-Commerce

There are a host of factors involved in the selecting the right jurisdiction for your business.

The geographical location of your servers is of critical importance, as the location of servers can define for legal purposes where the business is being undertaken. This, in turn, can influence where the business is taxed - or not taxed!

Most new entrants are able to work with an International Business Company (IBC), which is a simple offshore company, immune from virtually all taxation. The set-up cost is low, and administrative burdens are almost nil as there are no requirements to file accounts anywhere. Good typical jurisdictions would be Panama, Bahamas and St Kitts.

Other, more sophisticated, structures might look to places like Luxembourg, a small country within the European Union which is seeking to attract international, e-commerce businesses which need a physical presence at the heart of Europe. Businesses such as EBay, PayPal and Skype carry on their e-commerce activities from Luxembourg.


E-Commerce in International Free Trade Zones

One, less-talked-about, e-commerce model is the use of Free Trade Zones (FTZs). Businesses shipping physical product might choose to base their fulfillment operations in FTZs where goods may be imported and exported duty-free with minimum formalities. Examples of FTZs include Colon in Panama, Corozal in Belize, and various special economic zones in the Dominican Republic. In other parts of the world, you will find FTZs suitable for offshore e-commerce in places like Mauritius or Eastern Europe.

There are also many tax and other incentives for businesses establishing themselves in FTZs. Proximity to major markets such as North America and Europe makes these logistics hubs highly efficient. A product may be sold, assembled in a Free Trade Zone in the Dominican Republic, and shipped out by UPS that same afternoon to reach the UPS hub in Lexington, Kentucky that night and then anywhere in North America the following day.

Numerous fulfillment businesses located onshore or offshore can take care of everything including packing, customs, shipping, insurance and (heaven forbid) returns! So you don't have to handle the physical product yourself. The great advantage of this is that you are free to travel - for business or pleasure!


Personal Residency in a Tax Haven for Offshore E-Commerce Entrepreneurs

Establishing a residence offshore (even just a secondary residence) is a fine idea. Even a modest beach condo in Belize, Panama or the Caribbean is an important step towards protecting your future against unforeseen circumstances. In every issue of The Q Wealth Report you will read articles from knowledgeable experts such as Richard Cawte and Joe B. Gonzalez on personal residency and citizenship matters.


Offshore Merchant Accounts and Credit Card Processing

Credit card processing is a complicated business… so much so that many countries and local banks simply do not allow credit cards information to be taken over the internet. So how can you conduct business? How can you establish the necessary offshore, multi-currency merchant account?

Typically, the banking and incorporation should be done in the same jurisdiction where the server is located. The sale itself takes place, technically and legally speaking, on the offshore server, to avoid any possibility that the transaction could occur in the buyer's tax jurisdiction. The predominant payment method will be credit/debit cards, whether plastic or virtual, electronic wallets such as Hyperwallet or Cybercash. Many payment solution providers (IPSPs) are ready to help you find the correct solution for your business.

In each issue of The Q Wealth Report, offshore banking guru Peter Macfarlane imparts his expertise and helps you find the right solutions… often ones which are never advertised anywhere. Peter makes himself available for consultations with Q members and also gives presentations at Q Wealth Events.


Offshore Web Hosting

The geographical location of your servers is of critical importance. For offshore business models, the location of servers can define where the business is being undertaken. This, in turn, can influence where the business is established or seen to be established.

However, many offshore tax havens still don't have great internet connections. This probably doesn't matter for regular small e-commerce businesses, but it can make a big difference in bandwidth-intensive businesses like gaming.

Here are a few questions you should ask your hosting company before signing up with them…

• Connectivity - you need stable connections via fiber optic cable using high-quality equipment with redundant bandwidth available. Back-up connections via a direct satellite link can protect against effects of unexpected cable damage such as what happened in early 2008 in the Mediterranean, disconnecting much of the Far East's connectivity to Europe for days.

• Secure facilities - your business data must be stored in a secure environment. Premises, equipment and systems should be physically and virtually secure.

• Qualified personnel - equipment and systems should be operated and maintained by experienced and dedicated technicians trained to the highest standards.

• Scalability - the expanding nature of e-commerce means that your business will hopefully grow. So it should also be possible to grow in terms of physical space, equipment capacity and funding.

Where should you look for offshore web hosting? Good options currently might be places like Panama and Curacao, which have the best bandwidth at lowest cost. If most of your clients are in Europe, you could be looking at Malta or Cyprus which are connected to the biggest backbones. In Asia, Hong Kong is probably the obvious choice at the moment, but China now has the highest number of internet users in the world - and good hosting facilities to boot. India is also known these days for its excellent connectivity.


This article was prepared especially as an introduction to The Q Wealth Report. International e-commerce is one of the key themes that members will read about in every issue. If you want to establish yourself in this business and generate 24/7 online profits, we recommend you either learn more or sign up today to benefit from extra free reports on offshore banking and investing.