Advantages of Offshore Investing
Investors can take advantage of a range of strategies by investing money outside of their home country and into various areas in other nations. The number of investment opportunities provided by high-quality offshore investing companies are high.
These companies are financially sound and investing into them is legal. One of the most successful offshore Investment funds is Asset Secured Investments
Popular offshore investment markets can be found in countries such as the Cayman Islands, Isle of Man, Bermuda, and the Bahamas. These locations provide relatively safe investment opportunities to individuals and organizations.
There are a variety of advantages to investing in foreign markets and each investor’s situation is different. Some of the advantages you can receive include tax benefits and breaks, financial privacy, and asset protection.
Tax benefits for Offshore Investing
Tax havens are popular countries for individuals to invest their money. These countries offer favorable tax rates that promote healthy investment to attract wealthy individuals from outside the country. For smaller countries with a lack of infrastructure, a low number of resources and small population, the need to attract wealthy investors is high. The addition of wealthy investors allows a major increase in a tax haven’s economic capability.
Companies and/or wealthy investors occasionally choose to place a portion of their assets in an offshore tax haven. Asset protection works as it allows you to put money in a foreign country to prevent it from being touched by lawsuits, lenders, foreclosures, and credit collectors.
By transferring money into these offshore accounts, you are no longer liable to have your finances seized. Americans can contribute to their offshore trust account without being taxed by the United States government. It is important to note that an individual owner of an asset-protection fund can be taxed on their trust’s income regardless if the income has been distributed.
Privacy by Investing Offshore
Privacy is one of the major reasons that individuals transfer funds into an offshore bank account. Tax haven nations have passed laws to establish strict banking confidentiality. A breach of confidentiality results in punishment for the individual or group that caused the leak of information.
It is often believed that individuals who invest in offshore bank accounts do so for criminal and/or secretive reasons. However, many high-profile individuals simply want to keep their information private. Many successful investors do not want others to know what stocks they are investing in. If the general public knows what stocks the investor purchases, then it prevents them from having an upper hand in the financial industry.
Diversification of Investments Offshore
Offshore investment accounts offer flexibility compared to domestic accounts. Investors are not limited in the international markets they can invest in. Offshore accounts allow for unlimited access to all major financial exchanges and Strategic Wealth Preservation.
The investment opportunities available to you in developing nations makes it possible to diversify your investments. Many of these developing nations have business sectors that were once under the control of the government but are now being privatized. China is an example of a company privatizing a small section of industries and many investors around the globe are growing interested in the possibilities the market may offer.
Zanthe Alexander Bentley is a finance veteran with over 25 years’ wealth management experience advising both family offices and institutions on their corporate finance requirements including capital raises (debt & equity), restructurings and M&A activities. He has significant experience in investment management and investment banking and spent nine years at UBS focused on convertible bond arbitrage and equity derivatives.
Prior to getting involved in Asset Management he expanded a small Spanish brokerage from a handful of staff in Barcelona to a diversified brokerage company with over 150 personnel spread across 9 countries, transacting deals from High Grade to High Yield Fixed Income and Loans; Structured Products through to exchanged traded equities.
After taking time to focus on family office activities in Asia, Zanthe-Alexander now leads an ambitious zero-leveraged fund providing exceptional growth and income to Sophisticated Investors.
Zanthe Alexander Bentley Twitter: https://twitter.com/BentleyZanthe