Due to globalization, foreign investments take one of the most important roles in distributing money capital among countries. Investments through offshore companies are primarily intended for international investors. According to experts, around 1/4 of the global money supply is located in offshore financial centers.
Despite long-term confrontations between American organizations and offshore corporates, foreign investment continues to be a legitimate tool for tax planning. Tax optimization is of high importance for both companies around the globe and individuals. For example, it means that a business gets necessary investor protection from corporate failures or fund mismanagement. Moreover, it gains access to the entire market for offshore investment products, which maximizes its wealth potential.
Most people do not understand what offshore companies and offshore investments are. Even in the movies, we often see devious characters who illegally “hide money offshore”. But this is just a reputation fabricated by Mass Media and TV: foreign funds are mostly legal.
Simply saying, foreign investment means holding your money outside your country of residence. It may be a fund in a foreign company or your own business registered in another country, which is becoming common practice these days.
Depending on your financial goals and purposes, there are different offshore investment instruments available in the market:
Let’s take a closer look at the main advantages of foreign investing:
In any business or investment, it is essential to have a personal money management strategy to help you plan for the future. For first-time investors, it might be more challenging to invest in general, let alone FDI. Therefore, it is always better to consult with specialists about risk tolerance, taking into consideration the amount of potential investment. Einvestement specialists have broad experience in the field, so a consultation is likely to be highly educational and beneficial.
As for foreign investment, it is more common than you think. For example, pension funds and investment funds are included here. Investing offshore may be a good idea to “spice up” or diversify a portfolio, even for those who prefer traditional, low-risk investments. The main principle to adhere to are the same as with any investment: rely on common sense and a licensed investment platform.