Originally the term referred to those small territories that offered a tax haven for the rich. The phrase now has a much broader meaning, representing areas around the world that allow anyone who is not normally resident in the territory to invest there without having a tax liability on the gains. No longer a ‘rich mans paradise’ but more of a practical means for the average person working abroad to save in secure environments while taking advantage of companies that are household names.
Today, such territories include not only older ones, such as the Isle of Man and UK Channel Islands but places ranging from the likes of the Cayman Islands through to Labuan in Malaysia. All of whom have legislation to help protect the investor. It is our opinion that those older ‘Offshore’ territories have a greater number of major investment companies registered and that the legislation is generally stricter offering the investor more peace of mind.
There is usually no income or capital gains tax on the Funds or assets held in ‘Offshore’ markets although some will have a degree of withholding tax and some individuals will still have a liability to tax back in their home country, still in all cases the advantage of compound growth on a gross basis is very clear.
Tax efficiency and good legislation along with the almost unlimited amount of global assets that can be bought and traded through a clients Offshore portfolio mean that the expat who is constantly moving from country to country can have the ease of administration and peace of mind of not having to move their investment assets from country to country with them instead can leave them to remain invested and working for them while they as an individual change residency.
So is the ‘Offshore’ market for you? Hopefully, within this web site you will be able to find the answer to that question, be it for short, medium or long term, maybe for retirement, investment of a capital lump sum or simply to create some family protection.
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