Archive for the ‘Offshore Investing’ Category
Offshore Investing
About Offshore Investing
As an introduction of this article, I want to explain what offshore precisely refers to. Offshore is now an international word meaning not only out of your country jurisdiction but out of the tax reaches of your country of residence or citizenship. Investing offshore is a good solution for companies that do a lot of international business and for individuals who want to protect their person assets. Offshore banking in mixture with having an offshore company guarantees high flexibility and efficiency.
Why investing offshore?
The main reason people usually invest offshore is to avoid paying taxes. An offshore investment can be better than an onshore investment because it is less regulated and the behavior of the offshore investment provider, whether he is a banker, a fund manager or a stock broker, is freer than it could be in a more regulated environment.
One important thing to consider, when investing offshore is the political stability of the country because you could lose all your of your money while trying to avoid paying taxes in your country. However our days, over half of world’s transactions take place offshore. Offshore Investments grow much faster, because the gain on investment that is reinvested is much larger, since no tax was paid on the gain.
Who can Invest Offshore?
Anyone residing remote of their home country for over 183 days is suitable to benefit from greater returns to be derived from offshore savings and investments by choosing to invest or save offshore rather than onshore. But, to benefit from the low tax regimes that are available offshore, the individual has to own a residence offshore and for a resident in a high-tax area, there must be an offshore structure distancing offshore gains from the onshore taxes.
A few tips
The most important thing as I said is the political stability of the country in which you chose to invest.
There has to be a banking secrecy and there should be no withholding tax for foreigners in that country.
The offshore country must have no information exchange treaties with your country.
It would be better if your offshore bank does not have any branches in your country.
You should avoid Muslim countries and don’t forget that there is nothing illegal to own a tax free corporation.
