Archive for July, 2016

Offshore Investing: Pros And Cons

Tuesday, July 26th, 2016

Offshore investmentOffshore investment has grown a lot in some of the past years and it has become a great source for investment. Large number of investors invests in varied nation and the party to investment gets benefited. But offshore investing is not for every person. If you are thinking of making offshore investing then you must make some research and seek advice from your financial planner if you have one. Offshore investing has created very negative image in the mind of people as whoever makes offshore investing is always indulged in some kid of illegal activities or money laundering process which is definitely not true. Offshore investing is a risky thing and you need to have proper courage to handle all that. Make proper research about the country, their terms and conditions about offshore investing and then make the decision of investment. Get proper idea about the tax rate and also interest rate and also check the bank in which you are going for offshore investing. Here are some of the pros and cons of offshore investing which will help you decide whether to go for offshore investing or not.

Pros

  • Low regulatory environment

Market of investment can flourish a lot and can grow very rapidly if the regulatory environment is low and bit flexible which is definitely there in case of offshore investing. Just for instance take example of hedge funds; it is such a thing which can capture good amount of market if there is low regulatory environment. If the regulations are very tight, people would not be much interested in making offshore investing if the environment is very stubborn and there are lots of rules and regulations and procedures to be followed.

  • Tax benefits

If you are into offshore investing and you choose such a jurisdiction where the tax rate is much lower than that of your country then you are benefitted a lot. You can have lots of savings on your tax. Many people also take undue advantage of it but if thought in a positive way, it is one of the major benefits of offshore investing.

  • Confidentiality

Confidentiality is must when you make an offshore investment and you are given guarantee as to no one else except you will be provided with your matters in case of offshore investing. As per the matter that it is for illegal stuff then such things do require high level of confidentiality.

Cons

  • High risk

As these market is not much regulated that too in a proper manner, the risk has much increased in this market. There are chances that you lose your potential investments when there is change in inflation situation to recession situation.

  • Less transparency

As these types of investments are highly confidential, chances are there that illegal business is carried on. Lacks of transparency can one of the major sources in illegal matters. It can also encourage criminal activities which is not at all a good thing.