Our guide: Offshore investment myths

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When it comes to offshore investment, a lot of information is disseminated about what it is, how it operates, and legality. In this post, all the offshore investment myths are demystified to give you the correct information about offshore investments. 

“Offshore investment is all about evading taxes and such investors are criminals.”

This is a lie:

Investing offshore is legal. However, evading taxes is illegal.

Investing offshore is not tax evasion or avoidance. Therefore, it cannot be in any way likened to criminal activity.

Even for people from countries with very many and high taxes, offshore investment cannot be considered breaking the law. If you meet your tax obligations that are required by law, there is nothing illegal with investing abroad.

The truth is that when you invest abroad, there are taxation benefits and better returns on savings. The truth is that investing offshore has benefits that go beyond saving on tax.

“You cannot benefit from offshore investment.”

This is a lie:

When you go offshore, there are numerous benefits that surpass reduction of the amount of tax paid.

Though it is true that you have to meet personal tax obligations, there are lots of additional benefits including exposure to various currencies, assets, and investment opportunities.

By going offshore, you can benefit from better interest rates, flexible policies, lower charges, and better working environment.

Going offshore can also guarantee you better capital protection, privacy, and diversification.

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“Offshore investments are not properly regulated compared to local ones.”

This is a misconception:

The term offshore is used to simply mean another location other than what you are used to at home. Therefore, this can be a great misconception.

In this situation, it depends on the target market for investment. For example, Hong Kong has a well-regulated market that makes it easy to open companies, operate, resolve disputes, and make profits.

To know more about market regulation, it is important to complete a comprehensive review of the target region of offshore investment.

“You cannot afford to go offshore.”

This is a lie:

To go offshore, it is not that you must be the richest in your area.

Many expatriates take this advantage by saving in offshore schemes and borrowing from financial institutions to setup businesses offshore. 

Some people put bulk of their resources offshore using policies that make it possible to defer taxation until the benefits are withdrawn. By the time that the saver withdraws the money, he/she might be in a different tax bracket.

While it is true that many rich people manage their tax affairs more efficiently when resources and money are offshore, any other person can also go offshore and enjoy huge benefits other than those that are tax related.

Conclusion

When it comes to offshore investment, you must ignore the offshore investment myths and get informed about the myriads of benefits that come with it. From taxes, saving, investment, and assets portfolio, the benefits are very many.

To know more about offshore investment or how to take advantage of available opportunities, consider looking for the right financial advisor.

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