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Benefits of Having your Funds Offshore

Offshore funds are assets investedavailable to UK residents.
offshore where tax advantages exist. TheThe situation of each investor is
Bahamas or the Channel Islands can bedifferent. Offshore investors tend to
considered as examples. These are fundshave very complex criteria governing
outside the tax system of the countryinvestment selection, so in addition to
where the intended investor is residing.standard criteria (for instance passive
Offshore funds offer eligible investorsfunds, low cost, no load etc) the
significant tax benefits compared tofollowing issues must also be
many high tax jurisdictions such asconsidered.
United States and the European Union.1. Complex international tax issues
However, where funds are repatriated totypically apply. Tax considerations are
high tax jurisdictions, they are usuallyurgently important. It is imperative
taxed at normal rates as foreign arisingthat a competent authority on
income. Many of these tax haveninternational tax law be consulted
locations are considered investorbefore any offshore investments are
friendly and are intentionally regardedmade.
as financially secure.2. Ensure that tax avoidance shouldn't
Many offshore jurisdictions, notably thebe any investor's goal. The goal ought
British Virgin Islands, offer a zero taxto be maximization of post tax wealth.
regime for investment funds, which areIt may sometimes make sense, therefore,
domiciled there, which allows the fundto invest in an imperfectly tax
to reinvest that part of its investmentefficient vehicle if it is better, on an
portfolio's gains which would otherwiseafter tax basis, than any other similar
have been lost to tax.vehicles available.
A number of offshore jurisdictions have3. Some countries largely prohibit their
recently tightened the regulation ofresidents from investing in overseas
offshore funds.domiciled investment funds (e.g., US,
Offshore funds such as overseas unitCanada).
trusts, open ended investment companies4. Residents of some countries may have
and other similar collective investmentlocal investing options available which
schemes, have a long establishedmight be competitive with most of the
position of importance among the rangecountries but are not limited to
of savings and investment productsAustralia, Canada, Ireland, UK, US).



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