In my line of business people often ask me about investing in offshore, living overseas, what are the advantages, and is it actually legal. Well, to answer the last one first â€“ yes, of course, itâ€™s legal. Does it have any advantages? Thatâ€™s a little harder to answer because every person is different and they all have individual needs. The general consensus of opinion if you ask the man on the street about offshore anything, the answer is â€œThey must be hiding somethingâ€.
Different countries have different rules and itâ€™s kind of smart when individual governments make banking and tax laws that attract overseas investments and investors. Itâ€™s not always about tax avoidance but letâ€™s face it, countries that provide a high welfare level to their citizens always need a lot of money to be able to provide those services. High taxes and illogical investment rules are real deterrents for high-income earners and smart business entrepreneurs. Why would you want to give your government half of everything you earn?
The advice I like to give my clients that ask me about offshore companies, investment and tax advantages is to do due diligence on banks that offer these services and if what they offer falls in line with your own operations and goals then go ahead. Maybe you donâ€™t want to have all your financial assets in the one country. Overseas jurisdictions sometimes offer investment opportunities that donâ€™t exist in your own country. Isnâ€™t the idea of building wealth based on being smart with your money?
Being smart with your money includes using the best exchange options when you are doing overseas transactions. If you Ð°rÐµ Ñ€lÐ°nnÑ–ng a trÑ–Ñ€, one Ð¾f thÐµ mÐ¾Ñ•t important details tÐ¾ ÑÐ¾nÑ•Ñ–dÐµr is mÐ¾nÐµÑƒ ÐµxÑhÐ°ngÐµ. ThÑ–Ñ• tÐ°Ñ•k ÑÐ°n bÐµ dÐ¾nÐµ Ð°t any Ñ€Ð¾Ñ–nt during your vÐ°ÑÐ°tÑ–Ð¾n, but thÐµrÐµ are optimal mÐ¾mÐµntÑ• depending Ð¾n the country ÑƒÐ¾u Ð°rÐµ vÑ–Ñ•Ñ–tÑ–ng, as wÐµll as whÐ°t tÑ–mÐµ you wÑ–ll arrive. YÐ¾u Ñ•hÐ¾uld thÑ–nk about some Ð¾f thÐµ mÐ°Ñ–n methods Ð¾f mÐ¾nÐµÑƒ ÐµxÑhÐ°ngÐµ bÐµfÐ¾rÐµ ÑƒÐ¾u lÐµÐ°vÐµ for vÐ°ÑÐ°tÑ–Ð¾n. If you are sending money overseas then using a trusted and well known company is paramount to ensuring that you are not paying exorbitant fees and losing more than you expect on the exchange rate.
Offshore investment and banking usually have some tax advantages as well and a smart investor should look at the rules that apply overseas to find out whether these might help build wealth. One aspect of foreign or offshore banking is the privacy and confidentiality that it will give you. It wasnâ€™t all that long ago that the world suffered a financial collapse across Europe and North America. Itâ€™s not surprising that most of the countries that provide offshore investment services were not affected anywhere near as much. Think about that!