Is it possible to save on tax by going offshore?

One common question is: is it really possible for people who invest offshore to save on tax? Otherwise, why else do the politicians, celebrities, and pop stars have offshore investing structures in place so as to protect their assets? The facts are that these people are basically protecting their assets from litigations. They are looking after their finances and ensuring that they don’t overpay their tax obligation. Actually, you are under no obligation whatsoever to overpay your tax bill. Now before getting into how you can save on tax by going offshore, there are a few important factors to bear in mind.

First of all, going offshore is a hundred percent legal, mainly due to the fact that people nowadays live in a global village society. However, what really mystifies a lot of people is their conscientiousness when it comes to reporting their offshore activities. Whilst it is 100% legal and legitimate to go offshore, it is illegal to go offshore for criminal activities, or going offshore and failing to report what you are doing, especially where there exists a need for legal reporting. When in doubt, assume that a legal reporting requirement mandates you to take action and report your offshore activities for tax purposes. Always seek expert advice when it comes to offshore investments, because what you do with your security, finances, their security and the freedom of selection is quite critical for your offshore investments success.

Now to the main question: is it possible to save on tax by going offshore? Yes, it is possible! While evading tax is illegal, you are still living within the law especially if you are going offshore for tax reduction, for a legitimate tax avoidance reason and for tax deferral. Because the country you pay taxes to, you live in and that you are deemed domiciled in has a bearing on your tax status, you absolutely have to take personal and professional advice about the available tax options and how you could benefit from them.

Generally, if you have some money in savings accounts and investments, you can legitimately keep that cash outside your country and legally not have to pay tax on it. However, to find out on how you could potentially save tax on a purely technical level, seek the advice of a qualified offshore wealth manager who will then be able to scrutinize your tax and personal financial status and advice you accordingly. To decide whether not paying tax is morally acceptable is a personal decision. However, you couldn’t possibly pay tax you don’t owe any.

What we are actually talking about is to understand your entire tax position, then working within the taxation laws and regulations so that not to evade your tax obligations. After doings this, any legitimate tax enhancement paths available should be taken. Nevertheless, before heading out straight for tax free profits by investing offshore, make sure you are free from all legal tax restrictions of your country. Lastly, never forget to seek the advice of a qualified offshore investment specialist, as the assistance he or she will give is invaluable and will come handy later on. They will also advise you on how to best save on your offshore investment taxes and on how to reduce them or how to do away with them all together.