Offshore Investing in Europe

The benefits of investing in strong European markets.

If your current portfolio is underperforming, it may be time to branch out from the comfort of your home and seek offshore markets. Many experts believe this is one of the best ways to diversify your portfolio and protect your assets. This can also be a way to tap into a more secure banking system. Thriving markets in Europe offer easy diversification, private banking, and residency options for a brighter future.

WHY YOU SHOULD INVEST IN EUROPE

There are many reasons to consider making an offshore investment. Offshore investment may open up opportunities that may not be accessible in your home country. There are technological options, agricultural options, etcetera, that just are not found in an individual’s home market. Some investors seek out offshore investment for the tax benefits. Some countries boast their title as a low-cost jurisdiction, a country that offers incentives for foreign investors. These incentives benefit the investor as well as encourage the growth of their own economy by attracting wealth from other countries.

Many asset protection plans include offshore trusts or purchasing an investment via an offshore entity. When choosing an offshore asset protection plan, you can take advantage of some of the best taxation laws in the world.  Creditors who are after your money will run into numerous roadblocks. By going offshore, you can also use the foreign jurisdiction statutes that get you strong protection.

Another benefit European markets offer is its banking system. In terms of investment, banking offshore can help diversify your portfolio, protect your assets, and is the first step in moving your assets out of your country. Opening a bank account offshore

Further, holding an offshore account plays a key role in conducting international business. With a smart tax plan, an offshore bank can also maximize your tax efficiency by holding your offshore bank account in a tax-exempt country. Here are some of our favorite European banking destinations

• Monaco- Monaco offers a unique political and economic environment that can be great for banking and wealth management. The country offers nearly ninety banks, wealth managers, family offices, and financial advisors that manage almost 100 billion euro.
• Switzerland- Banks play an important role in the Swiss economy. Because of this, Swiss banking is also highly regarded around the world. Opening a bank account in Switzerland is not hard. You may also be asked to have a valid passport, various documents about your financial history and income, and documents proving you are who you say you are.

Many European countries offer an incentive for investors by granting residence for those who make an investment of a certain amount. Each program is different with its own process of getting residency, so it is important to do your research. Below are some of the most attractive programs found in Europe.

• Switzerland– To qualify, an investor must prove they have at least USD 1 million at their disposal before applying. The investor can gain the residency permit by either creating a Swiss company or paying a lump sum taxation (LST) fee that is roughly USD 170,000 or CHF 150,000.
• Monaco– Monaco’s residency-by-investment program allows individuals to gain a residency ship by placing a €500,000 deposit into a bank account in Monaco.
• Portugal– With an investment in real estate of 500,000 euros or more, you can receive the golden visa. After six years of the visa, you can receive a Portuguese passport, granting you easy travel and work opportunities throughout the EU. Instead of a real estate investment, you can also deposit 1 million euros into a local, Portuguese bank.
• United Kingdom– The Tier 1 visa is the British investor visa. To qualify, you will need to invest £2,000,000 or more in the UK, originate from outside of the European Economic Area and Switzerland, and meet a few other requirements. The visa grants you a stay of 3 years and four months with the opportunity to extend the visa for two years.

HOW TO INVEST IN EUROPE

As stated above, there are many different markets to tap into in Europe, from fintech to agriculture. Let us take a quick look at two very prominent markets.

Private equity is one way to invest. While the Eurozone is experiencing some difficulties, private equity investments are performing very well. They are matching, if not exceeding, that of the US in terms of returns. Across the continent, private equity investments have reached 71.7 billion euro in the past decade. That’s a 29% increase. In 2018, Invest Europe conducted a study and found that nearly 7,000 European companies have earned help through investors. Eighty-seven percent of these companies were small and medium. This is an 87% increase from the year before.

A second option for interested investors is real estate. Europe is a very popular place for foreign investors right now, especially for retirees, due to low-interest rates because of the European Central Bank’s monetary policy. Other reasons investors are choosing European, real estate is for asset class diversification, high-income return, geographic diversification, and hedging against inflation.

Investing in Europe with Alpen Partners

Not sure how you want to invest in European markets? Alpen Partners can help you choose the right European-based investment for you. As a Switzerland-based firm, we have partnerships that can enhance your portfolio. Whether you need an offshore banking destination, want to make a real estate purchase, or more, our expert team is ready to help. As an SEC-registered investment advisor, Alpen Partners is fully equipped to meet your needs.

Alpen Partners Opinion

It might be cliché, but we stress diversification at Alpen Partners. Each country’s market is unique in its own respect. European nations are no different. I would even argue that Europe, as a whole, has a vaster array of market opportunities than any other region in the world. Utilizing investment in Europe is the basis for the majority of our clients.