Structuring your assets in offshore companies can be an effective way to legally minimize your tax obligations.
It can also cause you difficulty and frustration. The biggest issue that entrepreneurs face with offshore investments is accessing the money they’ve earned.
When you want to spend or invest the proceeds of your offshore investments, how do you bring that money back home?
Richard Watson provides some commentary on this topic in this video, filmed at a Platinum Mastermind in Fiji.
RISKS OF OVERSEAS INVESTMENTS
Before you invest overseas or move your assets offshore, make sure you’re aware of the risks.
For a start, there’s the currency risk. If the currency of the country you’re investing in suddenly takes a dive, you could be in trouble when you convert it back to your home currency. This is especially true if your home currency increases in value concurrently.
Secondly, make sure you’re familiar with the political and legal systems of the country you invest in, or you have a financial advisor who is. Every jurisdiction has its own laws and regulations. Some countries experience political crises that can make it difficult to withdraw your capital.
Finally, be aware that transaction costs apply when moving money across borders. These vary from country to country, but a good financial advisor should be on top of this.
RISKS OF MOVING OVERSEAS
The risks of cross-border investments don’t just apply to establishing new investments outside of your home country. They also apply when you move to a different country and you try to access your pre-existing investments in your old country.
Again, make yourself familiar with the political and legal systems of your new country, or get a financial advisor who is. For example, in some jurisdictions, offshore entities are not allowed to own property.
Make sure you’re aware of these constraints well in advance, and you’ll avoid any nasty surprises.
The MOBE Platinum Mastermind is where the most experienced mentors in investing and asset protection share their investment methods with fellow members. To learn more about the Platinum Mastermind, click HERE.