For many investors the tax benefits an offshore investment can provide will be an important factor. Investments held within the international jurisdictions we use, grow virtually free of income tax or capital gains tax. Although you may be liable to tax when you withdraw your money, over the longer term and with the expertise of a professional adviser, the impact of tax effects can be managed.
Some funds may be liable to certain types of taxes which cannot be reclaimed. This is known as Withholding Tax. This tax is deducted at source, for example from dividend income.
When you withdraw money, you may be liable to local taxes on any gains. However, you have control over when and how much you withdraw, and this can help reduce any tax liability. For instance, circumstances permitting, it may be advantageous to hold off making withdrawals until you are resident in a country with a low tax rate or when you are in a lower tax bracket.
Go to the links in the icons below to find out more about some of the potential benefits.