EXPAT INVESTMENT PLANNING

Offshore Investments

What is an Offshore Investment Account?

An Offshore Investment Account is a low-cost and tax-efficient investment solution used by Expats worldwide.

Offshore investment funds and platforms are renowned for their flexibility. Typically based out of Jersey, these offshore accounts allow Expats to invest both lump sums and regular savings into an FCA regulated platform. Given the low tax status of Jersey, these accounts have the additional benefit of gross-roll up (compounding growth). No capital gains or income tax is paid within the account, meaning your investments can flourish in a tax-efficient environment.

Who is it for?

Investing money offshore has never been easier. Anyone can use a Global Investment account, including UK residents. These accounts will benefit the transient Expat the most, given their flexibility and portability when moving around the world - whether professionally or for lifestyle reasons.

These accounts may not be suitable for residents of France, Spain or Portugal depending on circumstances. In these jurisdictions, there are more tax-efficient solutions available.

KEY FEATURES

Low cost

Portable

Easy to use

Tax-efficient

FCA Regulated

Covered by the FSCS (financial services compensation scheme)

Wide, unrestricted investment selection

LIMITATIONS

Typically cannot hold individual shares

May not be the most tax-efficient solution

An Offshore Investment Account is a brilliant solution for Expats around the world. Portable, low-cost, regulated and tax-efficient mean this investment account is a winner for most.

Just be wary that there may be more tax-efficient local solutions depending on your residence.

Offshore Investment Accounts: Our Verdict

At The Wealth Genesis, we guarantee our clients no sales, commissions or conflicts of interest.
Just independent & regulated advice.

FAQs

  • Investing offshore can provide a number of benefits but it depends on your financial goals, risk tolerance and personal circumstances.

  • Yes, you may have to pay tax on offshore investments, but the details depend on both the tax laws of your home country and the offshore jurisdiction where the investments are held. Generally, the offshore investment account does not withhold taxes, and all withdrawals are paid out free of tax at the point of withdrawal. However, you may be liable for taxes in your home country based on its tax regulations. It's important to consult a tax professional to understand your specific obligations

  • Access to an extensive range of global markets

    Currency risk mitigation

    High flexibility in asset selection and currency options

    Tax efficiency depending on jurisdiction

    Greater liquidity and no withdrawal restrictions

    Consolidation of worldwide assets without the need to encash investments

    Low and transparent Fees including trading costs and currency conversion fees

    Ownership of assets with self-directed or managed options

    Exposure to currency and exchange rate risks

    High investor protection through regulation and segregate client accounts

    Estate Planning Options - ability to use beneficiary trusts in the event of death to simplify probate

    Ideal for expats, HNWIs, and those seeking international diversification

  • There are no restrictions on contributions or withdrawals. You can access up to 80,000 financial instruments in various currencies. However, if you are a US-connected individual, your access may be limited to certain products and funds due to US reporting requirements.

  • The main difference between an offshore investment account and other investment accounts is tax treatment, death benefits and compliance.

    • Tax Treatment: Offshore accounts may offer tax deferral, tax exemptions, or more favorable tax regimes, while local accounts are taxed based on your country of residence.

    • Death Benefits (Inheritance Tax): Offshore accounts may provide opportunities to reduce or eliminate inheritance tax, while local accounts are typically subject to inheritance taxes in your home country.

    • Compliance: Offshore accounts must comply with international regulations like FATCA and CRS, in addition to your home country laws. Local investment accounts are subject to the tax rules and reporting requirements of your jurisdiction.

    • Investment Bonds: In certain countries like France, Spain, and Portugal, locally compliant investment bonds can offer tax reductions, IHT removal, and simplified reporting, combining some of the advantages of offshore investment accounts with local regulatory compliance.

  • A Global Investment Account provides you access to a wide variety of asset classes in multiple currencies, including equities, bonds, mutual funds, ETFs, real estate, commodities, alternative investments, and even cryptocurrencies, depending on the specific account and provider.

  • Yes, you can withdraw funds at any time, whether it's through regular income withdrawals, ad hoc withdrawals, or a full encashment.

  • We begin with a discovery call to gain a clear understanding of your financial situation, goals, and specific requirements. Following this, we conduct a thorough analysis of your current assets and priorities.

    Using this information, we evaluate available products and propose the most appropriate solution. You’ll receive a customised Wealth Report that outlines our recommendations, including the most suitable Global Investment Account provider and a personalised investment strategy.

    Once you’re ready to proceed, we’ll handle all the necessary client onboarding paperwork and facilitate the setup of your new Global Investment Account. The provider will provide you with login and payment details, allowing you to deposit your investment and begin.

After all, it’s your wealth, not ours.