Offshore investments are often in the news. Unfortunately, it’s not always for the right reason. Many’s the time we’ve heard of some company or another which has been using offshore investments to avoid paying tax. It is these types of situations which give offshore investing an undeservedly bad name. The truth is, investing overseas can be a perfectly legal and highly beneficial financial move, when executed properly and in keeping with the law. Here’s how to do it.
A Simple Guide to Offshore Investing
Offshore investing is, simply put, the process by which a company or individual will invest their assets in opportunities outside of their home country. This is often done because the opportunity in question offers a great rate of return than any opportunity offered on home soil. Sometimes these benefits can be felt in reduced rates of tax. Other times, benefits will be gained in the form of confidentiality, asset protection or even simply in the opportunity to diversify assets.
Offshore investing is, in its simplest form, completely legal. However when individuals use offshore investments to avoid paying tax in their home country, for example, this is when offshore investing becomes hazardous. If you do decide to investigate the benefits of offshore investing, it’s important that you do so with clear motives.
The Benefits of Offshore Investing
As discussed briefly above, offshore investing has many benefits. This predominantly take the form of financial gain, whether it be by capitalising upon low tax rates or taking advantage of a wider range of investment opportunities.
Some of the other benefits of offshore investing are not quite so clear cut, however, as mere financial gain. Nonetheless, they are no less important. Confidentiality, for example, is of great interest to many companies and individuals who would rather their financial activity remained private. And at a time when the Big Brother state looks to be advancing closer than ever, this desire suddenly doesn’t seem so strange.
Getting Started in Investing
If you’re interested in capitalising upon the numerous benefits offered by offshore investing, you would be wise to get in touch with an expert financial advisor. They will be able to provide you with expert financial advice about what you need to do, and what your legal obligations are, when investing overseas.