Why Should I Go Offshore? Advantages of Going Offshore

by Mariska Clark on September 12, 2009

According to the offshore financier Terry Neal companies and individuals decide to move to offshore jurisdictions in order to get a better protection, benefit from offshore banking privacy, enjoy the tax-free economic environment and reduce risks and costs.

Terry Neal, enumerates and analyzes several motivating factors for going offshore. For instance, an owner of an offshore company gets the opportunity to invest in global securities including top performing funds not available to citizens of the country, where the investor resides. For example, U.S. persons are restricted, not by law, but by virtually all of the world’s Offshore Banking-Going Offshoretop performing offshore mutual funds, from participating in their collective investment. In developing countries, where the financial markets are underdeveloped they provide few investment opportunities; therefore it is natural that local investors seek such opportunities elsewhere.

On the other hand, offshore banking account owners get access to full set of banking products that may not be available in their countries and may not appear there for several decades.

Another valuable benefit that offshore banking brings is privacy that is often integral part of risk planning. Investors often seek anonymity, while offshore banking typically means greater confidentiality in business strategies.

Asset protection is also an important consideration. Offshore banking centers and tax havens usually have highly reputable and trustful financial sectors which have several decade record of successful operation. Therefore assets held offshore are secure and essentially immune from seizure and hostile litigation.

Taxation issues are one of the most important things that investors take into consideration, when moving offshore. Offshore companies are generally tax-exempt in their resident country and offshore banking operations are also taxed with zero rate.

Offshore banking centers and tax havens generally have highly liberalized economies with minimum bureaucracy and low regulatory burden. This allows offshore companies to be highly flexible and perfectly meet demands that investors have.

Indeed these factors represent advantages and benefits to begin offshore, thus the fact the so many business people choose to implement offshore strategies does not come as a surprise at all.

So to sum up the advantages of going offshore, it can be noted that the most important factors that one takes into consideration are low tax burden that is so uncommon in developed countries, anonymity that is highly demanded nowadays, secure and safe economic and political environment that is so rare in developed countries and liberal economy that brings extended flexibility for investors.

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