Offshores used to be associated with scandals, tax evasion, hiding money from creditors, or dubious schemes of tax optimization. However, this is no longer true as offshore jurisdictions have changed a lot. Their legislation is now in full compliance with the requirements of international regulators, and they are quite legitimate places to invest, open accounts, or start your business – just like any other non-offshore country.
Typical offshores are usually the countries whose economy is heavily dependent on foreign investments, so they do their best to create the most beneficial conditions possible to attract foreign capital. In this post, we are going to look at the best ways to take advantage of offshores, and we also invite you to read a longer article on how to invest offshore successfully on our portal. We also have qualified specialists who can give you advice on any aspect of offshore investments or business.
Why Make Investments Offshore?
Why invest in offshore projects if you are sure to find some opportunities back home? Let’s consider the most popular reasons why investors prefer offshore jurisdictions:
- Diversification. We all know very well how important it is to keep your eggs in different baskets. However, the laws of some countries limit the opportunities for international investments, and many investors want to overcome these obstacles and have a truly diversified portfolio. Offshores offer more flexible accounts that give access to a huge number of international projects.
- Foreign markets and currencies. This is one more important aspect of diversification: if one currency sinks, you will have assets in another currency to rely on. International markets give wide opportunities – you can invest in real estate, securities, or businesses, and create an investment portfolio that will support you in any situation.
- Higher profits. Offshore countries interested in the inflow of foreign investors usually offer tax benefits. A wise use of these possibilities will help you reduce expenses and thus increase profits.
- Asset protection. Offshore jurisdictions offer much better conditions to ensure the safety of your assets than you can have in your country of residence. You can transfer your capital to a trust, foundation, or offshore corporation to obtain reliable protection from your relatives and creditors. This is especially true if you choose real strongholds, like Nevis or Belize, that give a legal opportunity to keep your money safe under any circumstances in 99.99% of cases.
- Enhanced confidentiality. You cannot have absolute confidentiality in the present-day world as it is simply out of the law. However, offshores usually give you the highest privacy possible, and it is much better than you can have back home in 100% of cases. Offshore jurisdictions have strict regulations on banking secrecy and impose heavy fines for their violation.
All these features are attractive enough to make investors from all over the world flock to offshore countries in search of better opportunities to invest their assets.
Steps to Take Before You Invest
Investment is an important step, so it would be wise to make thorough preparations:
- Research. There are different instruments to be used if you want to make offshore investments, and you will need to study all of them (real estate, stock, mutual funds, securities, bonds, exchange-traded funds, and so on). Analyze your investment objectives and the risk you can take to make a final decision. If that sounds too complicated, contact our experts by following the above link to get qualified advice.
- Set up an offshore account. This step is mandatory as you need a way to transfer your money to the offshore jurisdiction. The process may vary depending on a particular country and may differ considerably from what you are used to back home. If you want to apply minimum effort, our specialists will open an account for you – you will only need to prepare a package of documents in accordance with our recommendations.
- Transfer your money. You can now transfer your funds from the account in your country of residence to the newly-opened account. Study the laws of your country to make sure there are no obstacles or restrictions – or book a session to get advice.
- Invest. Congratulations! The money is in the account, and you can now invest it. If you have a particular target in mind that you found at the research stage, you can get down to deal with the details. And if you are still unsure what the best option in your case may be, look for a financial advisor or a broker to know the current situation on the market.
- Monitor. At this stage, you have successfully invested your money and it will be safe – or hopefully bring profit if everything goes as planned. And still, we recommend constant monitoring of the situation – this way, you can make timely corrections to your portfolio if needed.
This looks like an easy way to go, but we do recommend seeking a financial advisor’s assistance. Investment is a step that should be made wisely, so you’d better be aware of all the risks and challenges you may encounter: it will definitely save you time and effort.
You can at least use the service that we provide for free: finding a jurisdiction for opening a bank account or starting a company that will be best in your particular situation.
Best Jurisdictions for Investors
Let’s look at several offshore countries that are very popular with investors (you will find a full list by following the above link):
- Bermuda Islands. Tax benefits and a robust financial sector make the jurisdiction a good place to invest in insurance and reinsurance companies.
- Cayman Islands. If you believe that alternative investment tools (like hedge funds) are what you need, the Cayman Islands is the destination for you.
- The Isle of Man is a place where investors are welcome to invest in annuity products (that provide fixed payments to investors).
- Consider Luxembourg if you want to invest your funds in collective investment instruments (like mutual funds).
- Gibraltar is a destination that attracts wealthy people with an opportunity to invest in different securities and mutual funds.
If you need help and want to invest your funds in the best way possible, click on the link above to contact our financial advisors. Ask your questions, share your doubts, take advantage of free and paid services, and make the most of your money!
