Generally speaking, there are two main groups of people who are interested in offshore accounts. The first group is planning to retire in the near future, and they want a stable place to protect their savings without a struggle or a lot of government intervention.
The second group consists of those who are interested in investment opportunities, and they don’t want to pay high capital gains taxes on their profits in places like the United States.
Thankfully, there are options for those who want to legally reduce their tax payments while growing and protecting their money. Here are some of the ways that offshore investing can help you to pay less in taxes and save you money.
Enjoy Tax-Free Growth For Your Investment
A popular option for investors is to take their dividends from stocks and reinvest them directly into the same company. Unfortunately, that income may have to be taxed before it can be reinvested in some countries. In offshore investments from places like Belize, you can reinvest dividends and income tax-free, which helps to grow your stock value without any negative consequences.
Take Advantages of Reduced Property Taxes
Although offshore accounts and investments can take on a number of different forms, one of the most interesting is real estate. Investors who are wary of putting all of their eggs in one basket, so to speak, will appreciate that there is an average of 1-percent taxation on property in places like Belize. Compared to many international destinations, that is a serious tax reduction that can save you money.
Capital Gains Taxes are Much Lower Offshore
Perhaps the biggest advantage of investing offshore is not having to pay capital gains tax on your income. If you make a smart investment and enjoy large profits, high capital gains taxes can dwindle your earnings significantly. By choosing a location like Belize that doesn’t charge taxes on capital gains, you will be able to pocket higher returns on your investments.
Become a Qualified Permanent Resident
In Belize, those who can qualify as permanent residents can enjoy the greatest tax benefits of all. Belize has a completely flat income tax, but those who are on a pension will be exempt from paying income taxes. For retirees in Belize who are receiving regular Social Security checks or a regular pension each month, this is a huge advantage. Keep in mind that in order to qualify as a permanent resident in a country like Belize, you should be spending at least half of your time within its borders.
Belize is just one of the many places that offer great tax offshore investment opportunities. Click here to learn more about options for international residents.