Offshore Investment

Offshore investments come in different forms but are done in offshore jurisdictions or offshore tax havens. There are several different mediums and strategies which can be used for making offshore investments all of which are legal. Offshore investments can be made in the form of offshore business companies or international business companies, offshore foundations, offshore trusts, offshore bank accounts and offshore brokerage accounts and many others.

The offshore jurisdictions which make it possible for corporations and individuals to do offshore investments are well regulated offshore tax havens are some of the countries listed here; Dominica, Panama, Bahamas, Cayman Islands, St Kitts & Nevis, Isle of Man, Hong Kong, Cyprus, Seychelles, Anguilla, British Virgin Islands, Barbados, Belize, St Vincent, Jersey, Mauritius amongst others. Offshore investments are legal investments offered by highly regulated offshore tax havens. In order for an offshore tax haven to offer an investment medium the proper legislation has to be in place in the offshore haven.

Offshore tax havens have attracted a high number of investors to offshore investing over the years for tax reasons. Offshore investments means reducing tax liabilities on entities which have been highly taxed if registered as a normal entity in a jurisdiction which is not considered a tax haven or offshore jurisdiction. Tax havens give incentive in the form of tax exemptions to offshore investor and it is for this reason why these countries are called tax havens. An offshore investment in the form of an offshore corporation means that this company will pay zero or very low local tax rate on income which is earned outside of the tax haven where offshore investment of company incorporation took place. Tax exemptions are given to all other offshore investments; offshore accounts, offshore foundations and trusts etc. tax exemptions are given on the following taxes; income tax, corporate tax, capital gains tax, inheritance tax, transfer duties, stamp duty and others.

Offshore legislation in the tax havens provides offshore investment with privacy and confidentiality. The laws regulating the various offshore entities make it possible for offshore incorporation or registration to occur without the names of owners and beneficiaries becoming known to the public. The names of these persons are not filed in public records and remain known to the Registrar of Companies and the offshore services provider who was responsible for incorporation/registration documents. Any person or corporation who makes public or makes available to a third party information concerning an offshore entity is liable to a fine or some sought of punishment handed out by the local courts.

Offshore investments mean asset protection. The use of offshore trusts and foundations as offshore investment means that assets are transferred to the offshore entity and not an individual. The offshore entity of choice itself is a legal body and the previous owner of the assets are no longer responsible for them making it difficult for creditors, litigators and other to target that individual for his/ her assets.

Offshore investment is becoming more popular and it is important to choose and offshore jurisdictions with progressive laws which are very strict and can protect offshore investments which are made.

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