Benefies of Investing Offshore
In the past, offshore investing was considered a tool for the wealthy to avoid taxes. Although there are wealthy people and companies that setup offshore, there are many average wage earners that are setting up offshore as well. Some people have simple offshore structures amounting to no more than a bank account or credit card to allow them access to international markets. Others have more complicated structures that include trusts.
Offshore investing is not something you hear about on the evening news, however it is a multi billion-dollar industry that has forced most of the world's major financial institutions to locate offices in offshore jurisdictions such as the Isle of Man, Switzerland and the Channel Islands.
More generally ‘offshore' refers to a wide range of investment strategies whose common denominator is that they occur outside your home country or country of employment in a low tax jurisdiction.
Anyone can benefit from the greater returns to be derived from offshore investments. In fact, depending on your situation, offshore investing may offer you a variety of benefits. There are many reasons why people use offshore investing as part of their portfolio strategy. Some of the core reasons for choosing to put your wealth in an offshore environment are listed below.
Asset Protection: Why is asset protection important? It holds your assets together while sheltering them from potential harm. After all, none of us can be certain of what the future will bring. This is why Montpelier Nordic believe in preparing you for tomorrow, today. How? By using offshore jurisdictions that have world class investor protection.
The United Kingdom investor protection laws rank as some of the best in the world and the Department of Trade and Industry has granted the islands of Jersey, Guernsey and the Isle of Man 'Designated Territory Status', meaning that they are able to offer equal or better investor protection.
They go so far as to offer the best investor protection scheme in the world, providing all policyholders compensation of up to 90% of their investment value in the unlikely event that the Company is unable to meet its liability. The priority system prevents the 'investor compensation scheme' proceeds from being used to meet the claims of any other creditors.
Montpelier Nordic will only recommend jurisdictions that provide its investors with excellent investor protection.
Confidentiality: Some people believe that it is their right to have absolute privacy in their financial, business and banking affairs. In most countries it is very difficult, if not impossible, to accomplish this due to the reporting requirements of government agencies. Many offshore countries don't have these reporting requirements. In fact, it is illegal in many offshore jurisdictions for the various institutions and employees to divulge any information about their clients.
Favourable Tax Laws: If you feel you are being overtaxed, personally or corporately, you may want to consider an offshore jurisdiction. There are a wide variety of countries that have minimal or no tax legislation that applies to residents and exempt companies.
Due to the absence of tax liabilities, the return on investments within offshore locations like the Channel Islands or the Isle of Man, will provide a higher return than an equivalent investment held in a conventionally taxed environment.
Access to International Markets: These can offer very competitive rates of return on mutual funds, deposit accounts and other investment vehicles.
Estate Planning: The laws in many offshore jurisdictions can make estate planning less complicated. As a result, it may be prudent for one to consider the utilisation of offshore vehicles as part of the estate planning process.
When investing offshore, expatriates and international investors alike benefit from: risk adjusted investment solutions, custom made portfolio strategies, a greater range of top performing funds, dedicated personalised client support, first class administration and total confidentiality.
Often Montpelier Nordic find that when they meet with prospective clients, they are surprised at the many opportunities available within the offshore financial environment that can save them not only capital but time! In short your offshore adviser can do everything your high street bank can do and more.
