Investing Offshore To Avoid Taxes

• Check whether the country has a trouble-free history and a secure society. Countries with a history of civil war, military coups and civil unrest are definitely not right for banking or investment purposes.

• Steer clear of banana republics! Look at the human rights record of the government. A government with a high regard for its domestic population is likely to regard you equally highly. A government that treats its citizens like cattle – to be reared, milked and slaughtered – is likely to land you in a situation where your private wealth and capital has become government-owned wealth and capital!

• Keep and eye out on the coverage, your offshore centre receives in the international press. Countries and regions rarely become hotspots overnight. Keep abreast of events and the socio-poitical climate.

• Offshore is no different to onshore in the sense that both will attract sharks who are only too willing to separate the unwitting and the ignorant from their hard-earned cash. Generally, the individuals who get stung are those who haven’t done their homework. Offshore tax minimisation is perfectly legal and should play an important part in your financial planning. Investing offshore doesn’t involve breaking any laws. What’s important is that tax evasion is not legitimate tax minimisation. It involves willfully failing to observe a law in order to evade taxes, which otherwise have to be paid. Do not evade taxes – or you’ll end up in very hot water!

Additional benefits of investing offshore:

Tax minimisation is not the only advantage to adding an offshore element to your investment portfolio. It is a form of diversification, and means your capital is protected against fluctuations in the economy. Nobody can predict the market’s health tomorrow. A serious downturn in the South African market performance could significantly reduce your worth, literally overnight. The assets you hold offshore are free from the effects of events in South Africa.

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