Offshore Investing

Offshore Investing is often demonized in the media, which paints a picture of investors stashing their money with a company on an obscure Caribbean island where the tax rate is next to nothing. While there will always be instances of shady offshore deals, the vast majority of offshore investing is perfectly legal. In fact, depending on your situation, offshore investing may offer you many advantages.

• Tax Reduction

Countries (known as tax havens) offer tax incentives to foreign investors. There favorable tax rates are designed to promote a healthy investment environment that attracts outside wealth.

U.S. citizens and residents are taxed on their worldwide income. As a result, investors who use offshore entities to evade U.S. tax can be prosecuted for tax evasion.

• Asset Protection

Through an offshore trust, wealth ownership can be transferred from you to an offshore entity. By making these ownership transfers, your assets are no longer susceptible to seizure or other creditor troubles.

• Confidentiality

Many offshore jurisdictions have strict banking confidentiality laws. If this confidentiality is breached, there are serious consequences for the offending party. It's important to note that offshore laws will allow identity disclosure in instances of drug trafficking, money laundering or other illegal activities.

Offshore jurisdictions are immune to the laws that apply in the U.S. U.S. courts can only assert jurisdiction over assets located within U.S. borders. It is prudent that the assets an investor is attempting to protect not be held physically in the United States.

• Diversification of Investment -

Offshore accounts give investors unlimited access to international markets and to all major currencies and exchanges.