Daily Investment Tips

Uk Residents can save on huge taxes by investing through an offshore company instead of investing directly.

Read the following part of of an article by the Bank of Scotland International explaining the benefits of banking and investing offshore.

“If you are UK resident but investing into UK property, and wish to do this through a company, an offshore company will almost certainly be more tax efficient than a UK company. This is because a UK company pays corporation tax at a maximum rate of 28%, and on any extraction of the proceeds from the company you will pay tax at either 18% or 25%. The cumulative tax burden is therefore 41% if the company is wound up after making the disposal, or 46% if it pays you a dividend. If, instead, an offshore company is used the individual CGT rate of 18% will apply to the capital gain provided the proceeds are distributed by a liquidation of the company within three years.

Source of the article investment international

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Offshore investment is investing money in a jurisdiction or country that is different from the jurisdiction or country that the depositor or investor resides in.

Major Advantage of Offshore investment

The main advantage of offshore investments is the tax advantage. Offshore investments returns are taxed between a low rate to a zero rate depending on the jurisdiction.

Major Offshore investment centres

Cayman Island, Bahamas, Bermuda, Jersey

Minimum deposit in setting up an offshore investment

This depends on the jurisdiction and the manager of the funds. With some managers and some types of accounts it is possible to start off with a deposit of $1,000, while other managers will require minimum $500,000.

Documents required in opening an offshore investment

Most offshore centres will require your identification documents such as your authenticated passport (must be current and valid) and one/two copy of your most recent utility bill to prove your current residency.

Choosing a safe offshore centre

A safe offshore centre should offer investors prudent, sound regulations in place geared towards safeguarding the deposits and maintaining their confidentiality. A respect for rule of law.

Talk to your financial advisor on how start investing offshore.

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Investor going offshore should consider the following Important factors that will guarantee a safe offshore centre. A desirable offshore centre  should : -

1. Have a history of rule of law
2. Politically neutral,
3. Follow a policy of free trade,
4. Not interfere with the commercial activities of corporations established there,
5. Provide reasonable assurances of personal and corporate privacy.
6. Converse in English Language,
7. High quality of telecommunications,
8. Availability of professional infrastructure,

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