INTERNATIONAL TAX AND WEALTH MANAGEMENT
TRENDS IN INTERNATIONAL TAX AND WEALTH MANAGEMENT Have the ‘Panama Papers’ Changed the Landscape?
FOR MANY DECADES, foreign nationals have turned to South Florida professionals for financial, tax and estate planning, as well as investment and wealth management services. To examine current trends and practices in this important sector – including the impact of the “Panama Papers” this spring – South Florida Legal Guide editor Richard Westlund interviewed several attorneys and bankers who practice in these fields: • D wight Hill, president, Sabadell Bank United • Kevin Packman, partner at Holland & Knight • Orlando Roche, regional president, Sabadell Bank & Trust, Miami-Dade County • Francis E. “Frank” Rodríguez, managing partner at Shutts & Bowen’s Miami office • Michael Rosenberg , of counsel at Packman, Neuwahl & Rosenberg Here are their insights and observations on serving affluent international clients. Q. Are the sources of international investors changing this year?
Orlando Roche and Dwight Hill
see an increase in U.S. investment and U.S. immigration. Roche: Miami has always been an international city, attracting wealth from Latin America, Europe and other global locations. As for Asian investment, to date that has been concentrated in real estate and commercial projects, rather than personal wealth management.
Rodríguez: The sources of international
Q. What other trends are you seeing in the market?
investment in South Florida change over time due to political, economic and currency trends. We have seen a downturn from Brazil and Venezuela and greater inflows from Colombia and Mexico, where some individuals are seeking to diversify their investments in the U.S. On the other hand, some foreign clients willing to take a risk are looking for investment opportunities in Venezuela because of the strong dollar. Rosenberg: Our experience has been to see foreign investment in the U.S. from all countries throughout the world. But whenever a particular country runs into economic or political problems, we generally
Rodríguez: Many of our clients come to the U.S. on a temporary or permanent basis. They may have existing businesses in home countries, and try to replicate that in South Florida. For example, a client with a car dealership, a restaurant chain or a hotel in Latin America might want to buy a similar business in the U.S. Others want to establish a business that complements one in their home country, such as self-storage facilities, textile manufacturing, heavy equipment distribution, electronics, and household goods. In any case, they should consider whether they want to establish a beachhead in the U.S., relocate here, or simply diversify
24
|
SOUTH FLORIDA LEGAL GUIDE MIDYEAR 2016
their investments by putting funds into a safe haven. Rosenberg: Some foreign clients have had to deal with certain Bureau of Economic Affairs (BEA) forms and the extensive reporting as to foreign assets within certain U.S. structures, That may, in time, adversely impact foreign investment although only time will tell. Another major current trend is foreign clients who are modifying their existing investment structures to make them transparent for home country compliance purposes. Packman: Most foreign nationals who come to South Florida don’t know their long-term goals. For example, they might work here for a few years, and bring along their family members. Then, the kids start school and Miami starts to feel like home. So even though they may have thought the initial visit would be short term, the U.S. eventually becomes their home. Consequently, the planning for a foreign national who lives in the U.S. a few years is different than the planning for a foreign national who will make the U.S. his/her home.