Why the Rich are getting Richer and you not!
It is not tax avoidance but knowledge: Stefan Neuss explains three principles that help the wealthy grow their fortunes legally while many owners stand still.
Why do the rich keep getting richer, while many successful business owners do not? According to Stefan Neuss, founder of WERA Capital Partners, the answer is not tax avoidance. It is knowledge and legal tax optimisation. The wealthy pay top lawyers, law firms and advisers to find lawful ways to optimise taxes and cash flow worldwide. Neuss explains three principles.
1. They own nothing, but control everything
Wealthy people rarely hold assets in their personal name. Instead, they control structures, and the companies within these structures own the assets: houses, yachts, planes or cars. The owner can still use them, for example by renting them from the structure.
2. They use legal structures to minimise tax
For most business owners, taxes are the biggest expense. A single limited company held in your own name, Neuss says, is not tax optimisation. Real optimisation today is an international project that requires a detailed understanding of the laws and tax rules in every country involved.
He is clear that this must happen within the law. "The rich always pay their taxes," he says, "but they pay the minimum the law allows."
3. They build a circle of wealth
The third principle is reinvestment. Profits are taxed once, then placed into the structure and used to buy assets. These assets generate new income, which is taxed and reinvested again. Over time this cycle grows wealth steadily.
The missing piece
Many six, seven and eight-figure business owners, Neuss observes, lack exactly such a structure. WERA Capital Partners helps owners build a global structure that makes this circle possible. A 15-minute private consultation is the first step.