Where to Make Your Next Offshore Investment (Part 1)

Diversify your portfolio, gain residency, and more! 

The world of offshore investment is exciting and can be a good next step to reach your financial goals. In many cases, it can also open up your doors in terms of expatriating through residency by investment programs. Whatever your reasoning, Alpen Partners has been collecting data on which country you should choose to seek out your next investment.

Here is part one of our list:

Switzerland

Switzerland is number four in Europe in terms of GDP per capita, one of the lowest unemployment rates in the EU, and has very liberal trade and investment regulations. Many Americans are taking advantage of the economic climate, and the United States is the largest foreign investor in Switzerland. Investing in the Swiss franc was very popular in the 1970s for those smart Americans hoping to avoid inflation and has remained a safe way to do so.

Since there is so much faith in Swiss currency, this is the obvious first choice for investors. Investing in the Swiss franc can promise high security, low risk, and protection from inflation. Investors are always looking for a high return with minimal downside. Stocks can often offer high returns, but they can also come with high risks and high inflation.

Investing in foreign real estate is another way for an investor to diversify their portfolio. When it comes to investing in international real estate, Swiss real estate is the best of the best. Swiss real estate is notoriously difficult for foreigners to obtain, meaning that this real estate is highly coveted by wealthy investors hoping for the highest returns.

Being an incredibly small but wealthy nation, Switzerland is an optimal place to purchase real estate. The small size of the country puts a higher premium on real estate than would exist in a more sprawling nation. In addition, the relatively high wealth of the citizenry means that it will not be hard to find clients to rent out one’s Swiss real estate.

Monaco

The small nation of Monaco is regarded as one of the most expensive destinations in the world and offers a strong and extensive banking infrastructure. Nearly 70% of the assets in Monaco are from non-resident funds, proving how much wealthy investors trust the country’s banking system.

Monaco is home to a unique political and economic environment that can be great for banking and wealth management. Large private banks offer the usual cash counter, safety deposit box, direct deposit, and other usual banking services. Leading banks also offer investment services like multi-currency deposit accounts, equity and fixed income trading, precious metals, foreign exchange, and commodity trading platforms. Many also provide managed investment portfolio services.

Like many countries, there is a program in the country that allows those looking to optimize income tax to invest in Monaco. To gain residency, investors will have to deposit €500,000 into a bank account in Monaco.

Portugal

Investing in real estate in Portugal is a great investment right now. After the market bottomed out in 2012, it has recovered well and prices began to stabilize in 2013.

Portugal has proven to be a top destination for expats looking to relocate, whether it’s for work or to retire. Lisbon, the capital and largest city in the country, has over half a million residents. The popular metropolitan area saw a 4.9% price increase, and urban area Amadora saw a 12.88% increase in 2017. For those looking to make high returns from the property, apartment owners are seeing a yield ranging from 4.5% to 6.7% in the Lisbon District.

The Golden Visa program in Portugal is the most popular route to citizenship in Europe. This visa offers investors flexibility and benefits. The program, launched in 2012, grants residency to those who invest €500,000 in Portuguese real estate. The residency is also extended to family members including spouse and dependent children. The visa needs to be renewed every two years and only requires holders to stay in the country two weeks in the country every two years.

You can also earn a Golden Visa through job creation or investing in capital.

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 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.