Investing offshore can be a very lucrative option for the judicious investor who likes to explore other markets, protect his investments from burdensome capital lawsuits, or grow his assets in a confidential, secure environment. Offshore investment vehicles are usually found in jurisdictions that have refined rules, regulations, and policies that direct how institutions handle and manage deposits and investments within their jurisdictions. Since these offshore jurisdictions often rely on offshore capital for their banking institutions, they try to maintain their reputation as a tax haven by developing statutes that provide clients of offshore banking institutions with personal privacy and low tax incentives. Listed below are some of the benefits of offshore investing:
American investors seek offshore investments for purposes of diversifying their investment portfolios, spreading their risk in a wide spectrum, and protecting assets from lawsuits. The citizens of other countries seek the same advantages as their domestic counterparts.
Investors might deposit funds into an offshore institution to safeguard their assets from political or economic turmoil in their home country. Investing in these same tax haven jurisdictions is the next logical step to maintaining and growing their assets.
Offshore investments can be as sound and secure as any home-based investment, subject to the same inherent risks. They provide added value to any investment strategy or portfolio. Offshore investing provides clients with flexibility in choosing investment vehicles not always available at their home institutions.
One of the biggest advantages that come with offshore investing is tax reduction. The companies that you will be investing with will be located in countries that have much more favorable tax laws than you are used to in the United States.
Another advantage of this type of investing is that you will have access to various investment and financial packages. Offshore investment companies do not have to worry about the rules of the Securities and Exchange Commission (SEC) when choosing their investment strategies. This opens up a world of investment opportunities and many options are available for clients to increase their returns while at the same time protect their assets.
By investing in another country, you will also be able to diversify your assets. If all of your money is tied up in domestic markets, you could be negatively affected if a recession were to take place. By putting a portion of your money in foreign markets, you will be able to safeguard your portfolio against a downturn in the economy.
Another advantage of offshore investments is confidentiality. Many offshore investment firms guarantee their clients complete confidentiality and will not disclose private financial information.
Harbor Financial Services (HFS)
Harbor Financial Services is a professional company that provides offshore financial advice and investment services to its clients. HFS recommends offshore products and services to suit any personal and/or business need. The company has helped clients find solutions to meet their long-term financial needs. HFS has the experience and the expertise to create the best offshore package for you. Visit http://www.hfsoffshore.com for more information about the company’s products and services.
Disclaimer: Many countries have laws regarding offshore entities and accounts. For example, citizens that form offshore entities, (for example an offshore corporation, offshore trust, offshore partnership, offshore limited liability company, etc.) own stock in offshore entities or hold positions within offshore entities may need to file a tax return. Citizens that form an offshore trust, move assets into an offshore trust or are the beneficiary of an offshore trust may need to file a tax return. Citizens that sign on offshore bank accounts or offshore investment accounts may need to disclose this fact to their government and pay taxes on any interest or capital gains. We strongly recommend consulting with a local, licensed professional to obtain tax and legal advice in order to understand the law and to fully comply with all applicable laws and reporting requirements regarding offshore companies, offshore trusts, offshore bank accounts and offshore investments.