Investing: How to save and make money by moving offshore
Yesterday we published an article highlighting the best offshore accounts to look into this year, and it seemed fitting to keep on this trend today. Those of you who may qualify for an account of this type are most likely wondering, will I actually gain any benefits from opening one? The answer, on the surface, is actually quite simple, yes! Money is a universal language and following the hardship of the past year during the pandemic, it has become scarcer in various sectors, meaning the need to save is ever greater. In conjunction with this, much cross-border activity ground to a halt, however, with transactions beginning to restart, it seems as though now is the time to consider moving yourself or your investments offshore, as opportunities appear in all corners of the globe, providing further chances to save money in the process. In this article we will outline exactly how, and hopefully help you decide if an offshore account is what you need.
Dealing regularly with foreign currency can become quite expensive, especially as exchange rates are almost never in your benefit. Having said this, if you work abroad or have business in another country, an offshore account will save you money as the rates are more competitive than a majority of other banks in your home country. If you feel like you are paying the Earth for a service that does not really benefit you, maybe you do not have to.
This next option is interesting, this is to say that it is not going to save you money, but rather make you more money. Some offshore accounts present with higher interest rates, meaning if you are looking to retire abroad, opening a bank account in the country you are going to move to may well be very beneficial, as the more money you put in, the more money you will get back. There are also more options, from fixed to flexible interest, offshore accounts have a plethora of opportunities and provide you with more freedom and money saving capacity.
Institutions within Western nations are increasingly limiting the availability of investing in numerous assets internationally. However, in various offshore locations where there are accounts on offer for expats and investors, there are opportunities to find new assets to put money into that would otherwise be unavailable. This is another option which will be attractive for those of you looking to diversify your portfolio overseas, however, as we mentioned yesterday, it is also important to ensure you are eligible for such an account as criteria become increasingly specific.
Finally, and arguably most significantly is tax. Most offshore savings accounts include taxation levels much lower than those you are likely to find in your home country. This usually manifests itself in the form of interest earned not incurring any taxation, which is rather significant to anyone holding an account offshore. As well as this, it is clearly linked with the higher interest rates, meaning you will experience a multiplier effect with increased interest and no tax on said interest gained. This is especially beneficial for companies establishing or moving offshore as their asset levels end up being much higher than they would be by remaining in countries exhibiting high taxation levels.
So, if you are interested in finding out more, or learning about your personal/business’ eligibility for an offshore account in order to experience these money saving (and making) benefits, please do not hesitate in getting in touch with us today. At Creimerman we are a team of global citizens at your service and here for you every step of the way in your cross-border ventures.