Company / Analytics

Analytics, 14 July 2022

Offshore investing with Investors Europe

Offshore investing has historically attracted both negative and positive outlooks. To some, it is an avenue of more flexible investing, privacy, asset protection, and very favorable tax benefits. To others, however, it paints a picture of tax-evading investors illegally stashing their money with some shady company located on an obscure Caribbean island.

While it’s true that there will always be instances of shady deals, the vast majority of offshore investing is perfectly legal.

Offshore brokers allow you to open investment accounts outside your country’s jurisdiction. An offshore broker offers you a lot more flexibility compared to regulated brokers.

For maximum safety for your offshore investment, investing with a trusted, effective and time-proven broker becomes essential.

Investors Europe is an execution-only broker and your orders go straight to the market in all asset classes - eliminating any conflict of interest. Our client’s assets are kept only with the largest and most regulated financial institutions in the EU, US, and Singapore to ensure maximum safety. All this is possible while being authorized and Regulated by the Financial Services Commission of Mauritius. Mauritius has a Baa1/Stable Moody’s Investment Rating and operates under common law which makes business easy.

Advantages of investing with an offshore broker

Flexibility

You can make investments and earn returns at any time and anywhere across the world. In addition, you’ll have a variety of investment options, unlike domestic accounts. In the case of a domestic account, an investor is unable to invest in an option in opportunities not available in a country’s jurisdiction.

With Investors Europe, the opportunity becomes better because we allow access to multiple asset classes and trade from a single account with our hand-picked online trading platforms. Investors also get to enjoy direct market access to specialists like FCMs.

Tax Advantages

Many countries (known as tax havens) offer tax incentives to foreign investors. The favorable tax rates in an offshore country are designed to promote a healthy investment environment that attracts outside wealth. For countries dedicated to attracting investors and dramatically increasing economic activity, which is the case of Mauritius where our headquarters are based, these tax incentives are quite apparent

Simply put, offshore investment occurs when offshore investors form a corporation in a foreign country. The corporation acts as a shell for the investors’ accounts, shielding them from the higher tax burden that would be incurred in their home country. Because the corporation does not engage in local operations, little or no tax is imposed on it. Many foreign companies also enjoy tax-exempt status when they invest in U.S. markets. As such, making investments through foreign corporations can hold a distinct advantage over making investments as an individual.

Asset Protection

Offshore centers are popular locations for restructuring ownership of assets. Through trusts, foundations, or an existing corporation, individual wealth ownership can be transferred. Many individuals who are concerned about lawsuits, foreclosing lenders, or creditors collecting on outstanding debts elect to transfer a portion of their assets from their personal estates to an entity that holds it outside of their home country.

By making these on-paper ownership transfers, individuals are no longer susceptible to seizures or other domestic troubles. If the trustee is a U.S. resident, their trustee status allows them to make contributions to their offshore trust free of income tax. However, the trustee of an offshore asset-protection fund will still be taxed on the trust’s income (the revenue made from investments under the trust entity), even if that income has not been distributed.

Confidentiality

Many offshore jurisdictions offer the complimentary benefit of secrecy legislation. These countries have enacted laws establishing strict corporate and banking confidentiality. If this confidentiality is breached, there are serious consequences for the offending party. An example of a breach of banking confidentiality is divulging customer identities. Disclosing shareholders is a breach of corporate confidentiality in some jurisdictions.

However, this secrecy doesn’t mean that offshore investors are criminals with something to hide. It’s also important to note that offshore laws will allow identity disclosure in clear instances of drug trafficking, money laundering, or other illegal activities. From the point of view of a high-profile investor, however, keeping the information, such as the investor’s identity, secret while accumulating shares of a public company can offer that investor a significant financial (and legal) advantage.

Diversification of Investments

In some countries, regulations restrict international investment opportunities for citizens. Many investors feel that such restriction hinders the establishment of a truly diversified investment portfolio. Offshore accounts are much more flexible, giving investors unlimited access to international markets and to all major exchanges.

Why you should chose Investors Europe as your offshore broker:

Choose one or several trading platforms and achieve your goals with Investors Europe

Investors Europe (Mauritius) Limited is authorised and regulated by the FSC Mauritius, license C112011088. Registered address: 4th Floor, Les Jamalacs Building, Vieux Conseil Street, Port-Louis 11328, Republic of Mauritius. Registered Number: 113933.

Any information contained on this website is provided to you for informational purposes only and should not be regarded as an offer or solicitation of an offer to buy or sell any investments or related services that may be referenced here. Investing in certain instruments, including stocks, options, futures, foreign currencies, and bonds involve a high level of risk. Trading on margin comes with substantial risk as well. You must be aware of these risks before opening an account to trade. The income you may get from online investing may go down as well as up.