DISCLAIMER: POLS (POLS) is a law firm that provides Introductions to licensed banks, brokerage firms, investment advisors, forex funds, mutual funds, and other licensed investment companies or professionals. POLS is NOT a licensed bank, brokerage firm, mutual fund, forex fund, or investment advisor.
Opening a Panama Offshore Brokerage Account
Offshore investing via an offshore brokerage account is totally legal, and can include various investment strategies that take advantage of many benefits not found in one’s home country.
The world is filled with bonds, corporate stocks, money market funds, commodities, and private investment opportunities. So much so it takes a real professional to assist and guide a new and inexperienced investor into the world of offshore investments.
An offshore brokerage company can offer consultations and guidance in order to choose the best fit amongst the many offerings and to reduce the risks lurking around any investment.
Offshore Brokerage Account Intro Advantages
1. Reducing Taxes
There are countries, like Panama, offering tax incentives to foreign investors. These countries are often referred to as “Tax Havens” by either having no income taxes or much lower tax rates than the investor’s home country. Attracting foreign investment capital can become a big boost for a small nation’s economy. Most often a foreign investor will create an offshore corporation in the tax haven country and open offshore brokerage accounts with a brokerage company located in the tax haven country. The offshore corporation acts like a shell for the offshore brokerage accounts by shielding the higher taxes in which the investor’s home country will levy. Most tax haven countries will not impose an income tax on the offshore broker accounts because the profits are occurring outside the territorial boundaries of the tax haven country. Some foreign companies can also receive tax exempt status while investing in other countries markets creating a big advantage for an individual taxpayer.
2. Asset Protection
Assets are properties or items of value. Real estate, bank accounts, vehicles, jewelry, corporate stocks, commodities, precious metals, government bonds and mutual funds are some of the valuable items which are considered assets. Creating an offshore corporation or an offshore private foundation is a popular method for protecting one’s assets from all sorts of invasions such as marital divorce, ex-spouses seeking additional alimony, personal liability from civil lawsuits, and government intrusion. If all assets are transferred to a legal entity prior to any claims being made by any of these intruders they will no longer be owned by the individual and the offshore corporation or offshore foundation will be immune to claims asserted by the intruders.
Some tax haven countries have laws protecting the privacy of their offshore corporations, offshore foundations, and offshore bank accounts. This means that legal entities like offshore corporations and offshore foundations can be created
where the true owner’s involvement remains completely anonymous. The same is true for their offshore bank accounts where in some countries it is a criminal offense for any bank employee to disclose the names of account holders and any other information about accounts to any outsider.
Tax haven countries are not required to uphold the laws of other countries. They maintain sovereignty. The courts and government agencies of one country cannot impose their will upon the sovereignty of another country unless they have specific treaties allowing for this. Therefore, it is recommended to choose a tax haven nation with no treaties with your home country pertaining to disclosure of confidential information or honoring civil court judgments.
4. Investment Diversification
Some countries restrict the types of foreign investments their citizens can make. Offshore brokerage accounts can offer a wide selection of worldwide investment opportunities. There is an advantage for diversifying one’s investments not only in type but also in different countries. The disadvantage of placing all your investments into one country is that if the country’s economy falters or political changes creates risk of government seizures, the investments no matter how diversified can all be lost.
If problems occur in one country, having investments spread out over several countries can cushion the fall.
5. International Opportunities
Investing abroad offers many opportunities. While U.S. stocks may consist of nearly 30% of the global market value, some of the largest companies manufacturing automobiles, electronics, steel, and consumer appliances are located outside of the U.S. in countries such as Brazil and South Korea. Thousands of large worldwide companies offer their stocks in different global markets and are located in countries with rapidly growing economies offering large rates of return.
Investing in different foreign markets creates a diversified portfolio which can balance between foreign shares fluctuating downward with other countries shares rising. This is a good system for spreading the risks.
Panama Offshore Brokerage Companies
Our law firm has contacts with several reputable Panama Offshore Brokerage Companies with access to global investment opportunities. Contact Us about Opening an Offshore Brokerage Account Intro today.