Typically, international investment vehicles will appeal to a person that already has assets overseas, is interested in investing overseas, owns a business overseas, or is perhaps considering an international move. Business executives that are being transferred temporarily to work in a foreign office may also be interested in establishing overseas investments.
In addition, those that have dual citizenship in different countries may also be interested in using this type of investment vehicle. In short, many people who are interested in this type of investment have some historical, cultural, linguistic or economic connection to another jurisdiction besides the United States.
What Is The Best Way to Invest Overseas?
One expert recommends “platforming” to those that are looking at getting involved with international investments. Platforming is a systemized, mechanized, legally compliant and organized way of instituting foreign financial planning. When a person decides to invest overseas, the first step is to develop a platform, such as an offshore holding company in a specific jurisdiction.
How Might A Platform Benefit Me?
Platforming provides many benefits, including privacy, so that a person does not directly own the property in the foreign jurisdiction. Privacy is important for several cultural, economic and legal reasons. In addition, using a holding company provides both asset protection and tax benefits to the property owner.
Using platforming can provide available investment options that might not be accessible to an individual purchasing property. Once the platform is created, there may be two or three jurisdictional persons, or legal alter egos, that are involved in any particular investment.
For example, a person who creates an offshore revocable trust in the Cayman Islands or Belize has a legal entity under the local law of the jurisdiction where the trust is created. Once that holding company is created, it is very easy to create additional entities to do certain investments. Someone could hypothetically use a holding company in Mauritius to make a commercial property investment in Hyderabad.
Then, if the person decides to invest in property in Mumbai, the holding company can create another subsidiary to purchase the second property. That way, it becomes very easy for people to substitute, add, subtract, delete, amend, change and alter their structures to suit their various needs at any given point in time.
An experienced international law attorney can assist persons interested in expanding into overseas investments with setting up international offer structures. Once the holding company is established, an attorney can help create subsidiaries as necessary to help meet the client's investment goals. Click here to schedule an appointment with an attorney to discuss the best investment solution.
IRS Circular 230 Notice: The Statements contained herein are not intended to and do not constitute an opinion as to any tax or other matter. They are not intended or written to be used, and may not be relied upon, by you or any other person for the purpose of avoiding penalties that may be imposed under any U.S. Federal tax laws or otherwise.