Tax efficient investing

May 13, 2020 / Investment Ideas

Can expats still benefit from tax efficient investments?

Despite Covid-19 there are more expats than ever before. Especially expats needs to think about their investments and how to structure them in a tax efficient way. People become expatriate for many reasons, some for work, others to be with their family or to retire in a better climate. Whatever reason applies however, their investment’s tax efficiency is usually overlooked.

So, what benefits exist for expats investing and banking internationally? Is it all tax-free and anonymous as some people think? Not at all, as first of all changing personal circumstances are tailored for more efficiently internationally where this is common practice. Secondly, it keeps your options open for the future.

Efficient solutions today:

By choosing an international location such as the Isle of Man , Guernsey, Bermuda or Barbados your investments benefit from stability and tax efficiency. Strong local legislative support for the financial services industry ensures stability.

The expat opens a life-insurance plan and the insurance company purchases a selection of assets. The expat does not own the assets directly, only the insurance policy. The value of the insurance policy rises or falls based on the value of the linked investments. Many countries do not consider such gains as a taxable capital gain. Local taxes on capital gains also do not apply if the expat is not a local resident. As a result, the expat can accumulate wealth within the insurance policy efficiently.

Flexibility for tomorrow:

Do not underestimate the benefits of having your wealth located internationally. First of all, most expats will never become resident in the same jurisdiction as where their policy is based, thus their policy can maintains it’s tax-efficient status. Secondly, they can control how, where and when they want to receive income from their policy. This is vital if you want, for instance, to retire earlier than the local pension age allows for. As nobody can be certain where they will settle down in the future, it is vital to keep your options open. Rules will continue to change in the future, but until you know where you want to live, keeping your assets under your personal control, in a tax efficient solution, gives you options most people can only dream about.

Shoreline helps you to manage your international saving plan and puts you back in control of your future. A secure international location means that you can contribute no matter where you work now, or during your future career. Each plan is flexible, so you can adjust your contributions easily and even take out some capital, if needed.

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