Investors today are increasingly going offshore with most of them placing their funds and saving outside their home country. This is mainly to attract the advantages of the offshore centers. There are obviously many locational differences of placing the money outside. It has been now understood that these differences are usually in favor of the investor than otherwise. All this has made the investor keen on going offshore.
Some of these benefits can be discussed here. One prime area of investor interest in moving offshore is the amount of tax it reduces. The offshore banks are present in tax free areas. The tax reduction in offshore areas is huge especially compared to onshore banks. Sometimes these centers even offer zero taxes and come to be known as ‘Tax Havens’. The tax reductions are the result of lack of obligations for the offshore bank to follow any definite rules and regulations by these banks.
Privacy and security are two other aspects of the offshore investment company. The offshore banks do not give away any details to a third party unless it has been confirmed that the investor has been involved in any illegal or criminal activity. This would mean that the investors can keep their wealth from getting disclosed and away from the creditors. Asset protection is one of the many advantages offered by the banks. This feature is highly useful when the investor is facing any malpractice litigation like the divorce and stands a chance of getting his assets claimed upon.