Offshore Investment Accounts for Expats in Australia
As a UK expat living in Australia, managing your investments effectively is essential. You may be looking for a way to diversify your portfolio whilst protecting your assets and minimise your tax obligations. A Global Investment Account, also known as an Offshore Investment Account, could be the ideal solution.
These accounts offer a tax-efficient and flexible way to grow your wealth, making them a great choice for expats seeking financial stability. Allowing you to invest in international markets, they provide the perfect opportunity to expand and strengthen your investment strategy whilst living abroad.
What is an Offshore Investment Account?
An Offshore Investment Account, or Global Investment Account (GIA), is an account held in a foreign jurisdiction with low or no tax, typically in locations such as Jersey, Guernsey, or the Isle of Man or Luxembourg
As these jurisdictions offer significant tax advantages, as well as strict financial privacy laws, these accounts are ideal for those who prioritise confidentiality and legal asset protection. They are also valued for their flexibility, providing full access to funds when needed.
Offshore Investments for Expats in Australia
Australian tax laws can be complex to navigate. If you qualify as a tax resident, you must pay Australian tax on your worldwide income, at the progressive tax rates. In addition, you must pay capital gains tax on your worldwide assets.
Offshore Investment Accounts are favoured by expats for their tax advantages, and for expats in Australia looking to optimise their tax position, this type of investment account could be an ideal solution.
No capital gains or income tax is paid within the account, allowing investments to grow in a tax-free environment, benefiting from gross roll-up and compounding growth.
At the Wealth Genesis, we work with trusted International Wealth platforms such as Novia Global and Ardan. For a full review, see our comprehensive independent guides below:
Key Benefits of Offshore Accounts
For UK expats in Australia, opening an investment account with a reputable offshore investment platform offers numerous advantages, including:
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The tax-efficient nature of offshore bank accounts makes them an appealing option for expats in Australia seeking to minimise their tax liabilities.
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These accounts offer full accessibility and the ability to invest through both regular savings and lump-sum contributions.
They are also highly portable, enabling seamless management of investments internationally.
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One of the key benefits is the broad selection of investment opportunities, with some platforms offering access to over 80,000 financial products, including low-cost index funds, mutual funds, and ETFs.
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These offshore accounts have no initial set-up fees, and ongoing platform fees start from just 0.34% per annum and can drop to 0.15% for larger investment amounts. This ensures transparency, with no hidden fees or commissions.
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At The Wealth Genesis, we deal with trusted and regulated global Investment Platforms such as Ardan and Novia Global, which are regulated by the Financial Conduct Authority (FCA) and covered by the Financial Services Compensation Scheme (FSCS). This ensures that our clients' investments remain protected.
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Converting investment income from GBP to AUD frequently can expose you to exchange rate fluctuations, which may erode investment value over time. A GIA resolves this issue by allowing you to hold and invest in multiple currencies.
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As an expat in Australia, you may have investments or assets in different countries and currencies- an offshore account enables you to consolidate these into a single account for easier management.
You can then work with a financial adviser to develop an effective investment strategy to further grow your wealth and achieve your financial objectives.
Investment Advice for Expats In Australia
For UK expats residing in Australia, opening an offshore account presents an excellent opportunity to reduce tax implications and streamline asset management.
At The Wealth Genesis, we are fully independent and regulated to assist expats in Australia with their wealth and investment planning.
To learn more about how a Global Investment Account can benefit you, book your free consultation with one of our advisers today.
FAQs
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Yes, in theory you can. If your UK investment adviser or platform can continue to hold your assets, there is no need to move. However, there may be better solutions available to you.
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They will be taxed at the local capital gains tax rate, and not at income tax rates.
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No, you can use funds domiciled in the UK or in Europe as an expat investor in Australia - there are no punitive tax charges for holding non-Australian assets.