Diversify your portfolio, gain residency, and more!
Are you ready to make your next investment? One of the easiest ways to diversify your portfolio and tap into markets you can’t find domestically is to make your next investment offshore. If you missed part one of this list, read that now.
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.
In part two of the Where to Make Your Next Offshore Investment series, we have gathered even more countries in which you can make a solid investment. This part includes countries that are well-known tax havens and those that have attractive residency by investment programs.
Tax havens are legal ways for individuals and corporations from all over the world to reduce their tax responsibilities. They provide banking services to foreign entities, allowing them to save money, and making it more appealing than continuing their financial business in their home countries. For individuals, tax havens can offer lower or no capital gains tax, tax on interest, inheritance, or personal income. Many corporations have saved billions by reporting earnings to subsidiaries in countries that have better corporate tax laws.
The following countries are perfect for your investment if you are looking for a tax haven. Other tax havens include Switzerland and Monaco, featured in part one of this list.
The islands offer one of the most attractive tax loopholes of both individuals and corporations. Here, corporations can be formed and retain assets without paying tax. When this is doe for business purposes, it is completely legal.
Offshore companies don’t pay taxes. Instead, they pay a licensing fee directly to the government every year. The amount of authorized share capital the company has is used to calculate this fee.
The Bahamas is a top tourist destination and also a hotspot for its offshore financial market. Many choose to form their companies amongst the 700 islands. The country has a thriving tourism sector and thriving political climate, drawing in individuals from all over the globe.
With no capital gains tax, inheritance tax, personal income tax, or gift tax, the Bahamas is a top destination for those hoping to save on taxes, especially older, wealthy individuals.
This small European country holds that status of a tax haven due to its business-friendly laws. These laws allow international companies to move parts of their business there in order to save on taxes. Some of the largest corporations in the world rely on Luxembourg’s tax laws. Nearly 33% of US Fortune 500 companies have places part of the company in Luxembourg.
Countries all over the world offer programs that allow individuals to make investments in real estate, the job market, reforestation, and more. In exchange, the investors gain residency and, often times, citizenship. Investors can use this freedom to escape from the high taxes of their hometown, find a retirement haven, or use a second passport to travel the world.
Below are some of the best residency by investment programs in the world. Portugal, home to one of the best residency by investment programs, the Golden Visa, is featured in part one of the list.
The United Kingdom is a beautiful, multicultural nation with high standards for education, healthcare, and business.
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.
When it comes to cost of living, Belize has one of the lowest – a life in Belize is literally a walk on the beach. You can live comfortably with just a couple thousand dollars a month.
The formal residency-by-investment program was suspended in 2002, but there are other ways an investor can gain residency in the country. One is by establishing a business with the Belize Country Registrar. After doing so, the investor can apply for permanent residency after one year.
The retired person program for residency is also one of the most popular in the world. By proving a $24,000 yearly salary, an individual and their family can qualify for residency in Belize.
The United Arab Emirates is one of the richest countries in the world, with an economy based on oil reserves. With the seventh highest GDP in per capita, there’s no question why wealthy individuals would want to seek residency, especially in the city of Dubai, an emerging business center and tourist hotspot.
For those looking to earn the investor visa, which grants temporary residence to the holder, the investor must deposit 10,000 AED or 20,000 AED with the UAE government.
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.