If you are working but your money is not then you are on unsteady ground and taxes will always play a large part in undermining net returns after all is said and done.
Depending on a few criteria such as nationality or residency, your investments may grow free of all forms of taxation. This may allow you to defer any taxable event until the distant future, and then also have control over how the disbursements to yourself are made, potentially further reducing your tax liability.
Taxation planning is a cohesive part of investment and should be considered as such- not as an afterthought.
There are three key benefits to offshore investing. First off is portability: you will have seamless access to your money practically anywhere in the world. Secondly, you as an investor may have significant tax advantages to housing your investments offshore. Finally, offshore accounts give much greater access to investment options. For example, domestic accounts typically specialize in their own home country with laggardly “international options” here and there; whereas with offshore you will have practically the entire world of investment, the experts in each field, all under one roof.
Contrary to popular misconception, the top offshore financial centers are in fact some of the most well regulated and investor-protected jurisdictions in the world.
President Barack Obama has money invested in funds domiciled in the Cayman Islands in his Illinois pension account from when he was State Senator? [Obama, Barack 2001 IRS Tax Report Filing- holding: Advent Intnl.]
Investing of-shore as a concept is in fact decades old and rises out of British history, serviced by a wide variety of credulous financial institutions concentrated in jurisdictions such as Guernsey (an island between England and France), the Isle of Man (an island lying between England and Ireland), Jersey (like Guernsey, situated between England and France) and some other Anglophone locations.
These locations have very high degrees of statutory regulation, legal frameworks for Investor Protection and very stringent legislative requirements. These financial centers are dependent on investors and as such have created a framework to an attractive and safe environment for clients.
Do not let inactivity and poor information stop you from taking the necessary measures to become tax-compliant and, wherever possible, reduce your tax liabilities in a fully-lawful and approved manner. Feel free to reach out to us via the Contact page if you’d like some more information on how to fine-tune your tax liability.
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