+65 8451 6653 info@alphafinhk.com
Select Page

When you have done some research, you would have found yourself facing various pros and cons whether to invest offshore. And because you are reading this article right now, you might be really confused and are looking for more direction.

Let’s look at four key questions:
• Is it for you?
• What will you get out of it?
• What are the downsides?
• Is it worth it?

Is it for you?

You would think, from reading newspapers & listening to TV, that investing offshore is illegal and should not be done. Or at the very least, unless you are an A-list celebrity or politician or a high-valued CEO, businessman, heiress or whatever, as long as you are considered as a high net worth individual – that offshore investing is best left alone.

Well, nothing could be further from the truth.

Investing offshore is both legal and can be highly fruitful.

Investing within your own country means that you’re leaving the majority of the investments in the world untouched. Even the US only represents 16% of the world’s investments. Smaller countries like Australia only 1.8%. Arguably, there are more diverse, better performing and more interesting investments outside of your home country. And with internet & technology, the world is now far easier to contact, research and transact.

What will you get out of it?

Diversity – By having your assets across different economies or countries, you will have less chance of ending up with absolutely nothing. By using foundations and trust funds, your assets will be protected from creditors and other unfavorable events that could happen in your country of residence.

Potential taxation benefits – if your investments are structured correctly, there may be taxation benefits in your home country. In some cases, taxation can be eliminated entirely.

Better performance – increasingly around the world, governments are adding more layers of bureaucracy and regulation – which, in turn, adds to the operating costs of companies. Some countries make it very easy to do business, which lowers companies’ costs, which can be passed on to deliver better performance. Countries like Singapore, Hong Kong, Malta, Estonia and many others, make it very easy to conduct business with appropriate regulations and controls. Countries like US, UK, France, Australia and most of the western world, are almost clogged with rules & regulations which makes running a profitable businesses ever harder.

What are the downsides?

All investments come with various levels of risk. Offshore can add the factors of distance which can hinder research. And let’s face it, the internet isn’t necessarily the medium you can trust.

But, if you chose investments from reputable companies or in types of investments that you understand well – then downside risks can be minimized.

Is it worth it?

Again, investing offshore is not just for high-net individual. It is applicable to anyone who wants to protect their assets and are willing to look into the possibility of globalization. Who could say no to huge amounts of savings and better business performance?

It’s okay if you are not an expert in offshore investing because there are people who can help. Choose the professionals that you can trust because at the end of the day, these will be the people that can help realize your financial savings and goals.

Murray Priestley has 25 years of commercial and asset management experience having served in board, CEO and senior executive positions with a number of global public and private companies. Murray’s experience covers IT outsourcing, private equity and asset management.