Offshore Investing
- Thread starter GreenTreeFrog
- Start date
go to rcanfiel atQuote from Bernard111:
Incomplete link: which is the correct, full length link, please?
Thank you!
http://www.elitetrader.com/vb/showthread.php?s=&threadid=103013
then click link
I guess I am wondering if I should spread my investment around and invest elsewhere offshore other than through Vanuatu. Not put all my eggs in one basket.
To buy offshore funds, do I have to buy through an offshore registered company? Can't I buy into funds personally?
As you're a resident of Vanuatu it doesn't matter from a tax perspective if the funds are registered in your name or your company's name. A company registered in the BVI is a good way to deversify your holdings with a stable tax haven. If Vanuatu is put on some financial blacklist it can be hard to open a bank account or conduct business with some countries, especially the US. If you have a shelf company registered somewhere else you could just transfer your funds and proceed business as usual.
Since you're a resident, do you know anything about the car registration program in Vanuatu? Do you have to be a resident to register a car over there?
Beware of letting the tax tail wag the investment dog.
There are two basic elements in investment planning: structure, and asset allocation. I noted the key points of these in my earlier replies.
No, you do not need an offshore company to buy offshore funds. (In an earlier reply you declared a principle of transparency as far as tax reporting was concerned).
Choice of structure should be influenced by the overall size of your investment as well as your long term plans.
Yes, you should probably diversify. If your primary goal was capital growth, definitely, as you are largely tied to the fortunes of commodity economies presently.
But you opened with an objective of seeking income. So the choice might be currency-dependent (matching interest/dividend flows with any liabilities). Obviously gross yields are highest in your neck of the woods.
We had a car in Vanuatu and I cannot recall if there was any residency criteria. I suspect not - Vanuatu is very laid back! Even drink driving is permitted as long as you do not get caught with a drink in your hand! I do not condone that one.
And based on this I would say not... http://www.offshoresimple.com/vanuatu_car.htm
Thanks Melo. What currency to invest in is my other dilemma. I am paid in GBP so could invest using GBP. I have liabilities in Aus and NZ. NZ is self sufficient as are investments in Vanuatu. I was thinking of GBP and USD primarily.
So with portfolio bonds and ETF's, do I need to purchase them through a broker based themselves offshore?
As most of the portfolio bond literature is written from a UK citizenship perspective, the terms 'onshore' and 'offshore' can be potentially misleading.
Technically, the product for your circumstances would be an offshore portfolio bond, but the broker (i.e. an authorised distributor) could be based anywhere.
Most providers of portfolio bonds only sell via intermediaries. This doesn't make any difference to the purchaser, as the embedded costs are the same.
Which brings me to the first key point: not all portfolio bonds are created equal. (i) The cost structures are designed to confuse and conceal a quick evaluation, and of course small % differences can have a considerable impact over time, (ii) there are other, more favourable, terms that are not advertised
Second key point: offshore brokerages are definitely not created equal. Caveat emptor....
With ETFs, you have a wider choice of purchasing channels. If you're a self-driven investor, you could use an offshore internet stockbroker, or possibly your bank if it offers a discount facility.
There are a large number of ETFs listed on the London Stock Exchange, which would match your GBP income.
Although an income fund may be ostensibly tax-free both in the jurisdiction where it's listed/sold and from your own tax situation, the underlying securities may suffer withholding tax on interest and dividend income (30% on US bonds, for example).
Possibly I may be able to help with more specifics ...send me a PM if you get stuck
melo
Technically, the product for your circumstances would be an offshore portfolio bond, but the broker (i.e. an authorised distributor) could be based anywhere.
Most providers of portfolio bonds only sell via intermediaries. This doesn't make any difference to the purchaser, as the embedded costs are the same.
Which brings me to the first key point: not all portfolio bonds are created equal. (i) The cost structures are designed to confuse and conceal a quick evaluation, and of course small % differences can have a considerable impact over time, (ii) there are other, more favourable, terms that are not advertised
Second key point: offshore brokerages are definitely not created equal. Caveat emptor....
With ETFs, you have a wider choice of purchasing channels. If you're a self-driven investor, you could use an offshore internet stockbroker, or possibly your bank if it offers a discount facility.
There are a large number of ETFs listed on the London Stock Exchange, which would match your GBP income.
Although an income fund may be ostensibly tax-free both in the jurisdiction where it's listed/sold and from your own tax situation, the underlying securities may suffer withholding tax on interest and dividend income (30% on US bonds, for example).
Possibly I may be able to help with more specifics ...send me a PM if you get stuck
melo