Take advantage of some of the world’s strongest economies.

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.

Offshore Investing

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, agricultural options, etcetera, that just aren’t 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 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.

Ideal Banking Systems

Confidentiality is another leading advantage of banking overseas. Many countries have laws that hold banks to strict confidentiality with serious consequences if it is broken.

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.

Residency by Investment in Europe

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 residency ship by placing a €500,000 deposit into a bank account in Monaco.
  • Portugal- With an investment in real estate of 500,000 euro 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 euro 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 4 months with the opportunity to extend the visa for 2 years.

Investment Options

Like 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

While the Eurozone is experiencing some difficulties, the 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. 87 percent of these companies were small and medium. This is an 87% increase from the year before.

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 to hedge against inflation.

Alpen Partners

Your wealth is important. If you are serious about your life goals, financial planning and investments are probably important to you. Financial planning can involve many steps from tax optimization to asset protection. Different investments have different rules with different returns.

With the help of financial planning, you will be able to predict where you will be in the years to come by evaluating where you are currently, what sources of income you plan to have in the future, investments you plan to make, and your retirement plans.

Alpen Partners Wealth Management International AG, the sister company of Alpen Partners Wealth Management AG, is now a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). Together with our partner Swiss private banks, our company can now offer the full Swiss private banking experience to American clients, both resident and non-resident.