As an international company, Mercer Capital Management has many clients across the globe who take advantage of the various opportunities offered by investing overseas as opposed to in their domestic markets, but we also understand that for our newer, less experienced clients, the thought of sending hard earned cash overseas can be daunting especially if it is for the first time.
Below we have put together a basic guide showing why savvy, experienced investors find the opportunity to make their money work for them offshore so appealing:
Advantages of Offshore Trading
Tax Reductions: – For many investors the main advantage of investing in the overseas markets is the tax incentives that are offered to foreign investors by certain countries known around the world as tax havens. These “tax havens”offer favorable tax rates designed to promote a healthy investment environment, attracting outside wealth to the host country, thus helping boost its domestic economy. The only time investors will be liable to local taxes on their investment gains is after monies is withdrawn from any offshore accounts, however our experts here at Mercer Capital Management will advise you the client, on how to time any such withdrawals so as to minimize the impact of any such taxes.
Diversification: – There are numerous ways that investing offshore can help investors diversify a portfolio. For instance it can:
- Gain exposure to investment sectors not normally catered for by domestic products.
- Take advantage of booming foreign economies and make the most of international growth cycles.
- Protect against potential depreciation in your local currency rates and offer you access to more stable global currencies.
- Allows you to build a more balanced, secure portfolio in a well regulated jurisdiction.
Asset Protection – Offshore centres are popular locations for restructuring ownership of assets. Through trusts, foundations or through an existing corporation individual wealth ownership can be transferred from people to other legal entities. Many individuals who are concerned about lawsuits, or lenders foreclosing on outstanding debts elect to transfer a portion of their assets from their personal estates to an entity that holds it outside of their home country. By making these on-paper ownership transfers, individuals are no longer susceptible to seizure or other domestic issues.