The popularity of offshore investment services has come under increasing focus over recent years, as affluent investors aim to continue to protect and grow their assets whilst the ever shifting sands of the global economy keep us all on our toes.
Since the global economic downturn of 2008 and in the subsequent recovery period many of the typical factors influencing investors from the traditional global powerhouse economies have continued to ring true.
Whether it is Russian investors looking beyond the lack of choice and sophistication in their own banking system or German conservatives eternally concerned about the fluctuation and long term viability of the euro, many of them still look offshore for the most prudent way forward.
For wealthy Americans their country’s struggle with China as the leading global economy has weighed into their planning and for the evolving economies of South America and India the old woes of instability are still highly pertinent. What about the classic English gentleman aiming to grow his wealth intelligently whilst property prices in London continue to skyrocket around him and he ponders whether that bubble will eventually burst?
For the Englishman in particular and for any individual looking beyond their domestic market for assistance with asset management one of the key considerations is the intricacy of differentiating between tax evasion and legally avoiding paying unnecessary tax.
This is where factors such as residency status, local inheritance tax laws, capital gains tax and the flexibility and sophistication of one’s native banking system come into play as investors seek maximum traction.
Axel von Schubert of Bahamas-based firm Euro-Caribbean Management Services (ECMS) explains why looking offshore is more relevant than ever for the wise investor, stating, “The past few years have seen fluctuations in exchange rates unprecedented in recent times, whilst tax and overseas investment regulations have evolved rapidly in individual markets, so investors come to us seeking advice on how to remain ahead of the curve.”
Mr Von Schubert has over 25 years experience as an international legal advisor and senior consultant to family offices and private clients around the world, with a specific focus on structuring asset protection vehicles and assisting with private banking and wealth management projects.
Clients include the German fashion house MCM and the Russian airline AEROFLOT, in addition to a number of high profile European private investors.
Advising both private and publicly listed clients on offshore residence matters in various jurisdictions, he adds, “The sophistication in the market place, the array of investment options and ease of access to services online now has certainly give investors plenty of room to manoeuvre, though what our clients tend to seek are longer term goals, 100% assurance and deeper insight on the modern international investment environment. In 2015 and beyond it’s not about hoarding wealth on an island, we manage publicly listed investment funds in various countries and manage capital in numerous global markets, seeking the best returns for our clients beyond the confines of their native banking systems.”