Monday, January 07, 2008

The Benefits Of Offshore Investing

By John Spencer

The most important advantage in offshore investing is that you can make a lot of money without paying almost any taxes.If the investor lives in a place where he pays taxes like most countries then he will only pay taxes on his dividend or interest made.

These offshore hedge funds have one very important things working for them which is the tax benefit,and this, the onshore hedge funds with the same returns don't have.Some of these funds ofer regular banking services but they tend to focus on the investments for the most part.Most people now by know that these funds are easily accesible over the internet and that the offer a lot of different funds to participate in.

But, the advantages of mutual funds, offshore investment funds and even their onshore equivalents are multiple. They are committed to provide these offshore funds that are structured similar to onshore equivalent. But you can see that they are based offshore or outside taxation countries like US.

A wide variety of offshore investment are out there such as income, bond, capital, money, property, equity and rising market funds.All these different funds have a lot of benefits such as affordability, tax benefits, diversification, regulation, variety and professional management.

Most of these offshore funds carry a wide variety of comomodities in their portfolio.Investors who are into currency trading will definately like offshore investment funds.When investing in offshore funds you will have the possibilty to spread your investment in such a way that you reduce your risk and and create the potential of making higher profits.When you are not an active trader the offshore investment funds offer managed and pooled accounts to invest in.

If you are an expatriate then holding your money offshore or even investing offshore is not really necessary but if you wish to pay as little as possible in taxes this is the best option available.When you have other priorities then keeping your taxes to a minimum then onshore hedge funds might be an other way to go.

If you compare offshore hedge funds to expatriate insurance you will see that they are both based on the same principle.This having proffesional management on staff and a well spread portfolio of investments.

The qualification of a fund as an offshore investment is attained if it is incorporated in an offshore center and intended for use by non-residents of that jurisdiction. In the way of local taxes, such funds usually pay little or nothing, though they may receive dividends or interest net of withholding tax depending on where and which assets they invest there. The major tax benefits associated with offshore investment are that they can grow tax-free, profits or income can be realized without the deduction of tax at source. But you can see that there are also tax breaks offered to those who invest through mutual funds as well.

A lot of pooled accounts have been established offshore the last couple of years by which investors have the possibility of investing in a wider bouquet of investment funds which require a high minimum amount of capital to open an account.

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