Offshore investment

information on investing in offshore investments or funds

Information on investing in offshore investments or funds


Despite the many pitfalls of offshore investing, it can still pay off to shift some investment assets from one jurisdiction to another. Due to the use of offshore centers, investors are able to conduct investment activities in a more profitable fashion. Often, taxes levied by an investor's home country are critical to the profitability of any given investment. If the fund companies can cut the total costs of managing your money one of two things will result: they will either earn bigger profits or you will pay lower charges. Most, however, are happy to reduce their owns costs within the law and let governments and tax officials close loopholes if they regard them as unfair. Researching the country or region, its trends and political and economic environment is essential before you invest your money. An investment manager then buys and sells shares or other assets on your behalf. Some managed funds focus on specific regions such as Asia or Europe, while others focus on specific asset classes in certain regions. Managed funds can be an effective way to gain diversified exposure abroad. ETFs aim to track the performance of a certain market, index or a specific asset class such as international shares or global property. ETFs often have low fees and can provide low cost exposure to international investments. Australian resident for tax purposes, you must declare income from overseas investments in your tax return. This includes income from offshore bank accounts, income from international shares, rental income from overseas properties and capital gains on overseas assets. If you have already paid foreign tax on your international investments, you may be entitled to an Australian foreign income tax offset. This is particularly useful for those who are living or working in countries where they are not comfortable holding all of their wealth. Allan Gray Proprietary Limited or any of its associates or subsidiaries (collectively “Allan Gray”) to buy or sell any financial instruments or to provide any investment advice or service.