Carrington Asset Management Ltd - Offshore Investment

Offshore Investment

Why offshore investing could be right for you

You might be under the impression that offshore investments are something only seriously affluent people use, often for nefarious reasons, such as hiding wealth from the authorities.

This misunderstanding is a very long way from the truth, as offshore investing allows you to legally take advantage of opportunities that aren't available in the country or region where you live or work.

Many pension funds include offshore investments, so you may already be investing offshore without realizing it.

If you are an expat, you probably have an offshore bank account, either in your home country or somewhere else in the world where you may have once lived. Offshore investing takes this one step further, so instead of just saving your money in an overseas account, you invest overseas, possibly in real estate, a business, or offshore investments.

What are the types of offshore investments?

Offshore investments tend to be similar to those you might have at home, offering a combination of direct equities, assets, or offshore funds/plus those mentioned above. As each person's situation is different careful consideration will be needed, but it could be more tax and exchange-rate efficient than investing in your home country.

What's the difference between offshore investing and domestic investing?

Like regular investing, whether investing offshore is right for you may depend on your appetite for risk. It may also have advantages over and above domestic investing. As well as possible tax benefits, you may also receive more asset protection and enjoy stricter confidentiality.

Some of the benefits enjoyed by offshore investors include:
  • tax-efficient investments in different currencies, subject to your circumstances
  • the ability to hold assets and transact in multiple currencies
  • access to expert international investment advice
  • asset management in a secure, central location

If you're already living or working overseas, planning to move abroad, or are paid in another currency, investing offshore could be right for you. It could help you minimize currency fluctuations – especially if you plan to buy real estate or a business in the overseas country where your cash is situated.

If you already have assets overseas or support loved ones living abroad, keeping your investments where they reside can make financial management easier. If the country where you're based has a weak financial regulatory structure, you may prefer to invest somewhere with better protection.