Pros and Cons of Offshore Investing

Offshore investment means keeping of money in a jurisdiction other than one’s country of residence. There are many options such as money market, bond and equity available to offshore investors, offered by offshore companies that are trustworthy, established and, most importantly, legal. Following are the basic pros and cons of offshore investing one should consider before investing:

Pros of investing in Offshore Investing:

Asset Protection

In Offshore investing it is possible by transferring assets to a legal entity outside your country through structures like trusts, foundations or corporations. If something happens to the investor in the future, their assets remain secure for the future generations. Offshore investing is like an insurance policy.

Tax Savings

Tax is a favourite subject when it comes to offshore. Some jurisdictions offers tax incentives to those who want to invest in local assets.

Diversification

Due to flexible investment options offshore encourages foreign investments. These assets can be easily diversified due to easy access to the exchange and international markets.

Privacy

Many offshore jurisdictions offer investor privacy. A kind of secrecy is not just for the provision of hiding transactions it is a right that should be enjoyed by everyone in their investment decisions.

Hedging

Exposure to offshore markets could also be used in the form of hedging due to inflation.

Cons of investing in Offshore Investing:

Cost

Offshore investments are very expensive. It depends upon the choice of jurisdiction. Some offshore investments may cost you more due to the professional fee structure of the account service provider.

Safety

Many investors, especially those new to the offshore world, the question whether this concept is safe or not? The truth is investing in your home country you should always undertake proper due diligence on any potential account manager or organization. It is always advisable choose a reputable organization to handle your assets.

Legalities

Matters around legality might make you nervous about investing offshore and could cause you to be discouraged about investing in offshore.

Risk

Every business or any other venture consist of risk, in offshore investment also you need to consider the profile and risk parameters.