Offshore Investment Accounts for Expats in Canada
As a UK expat living in Canada, managing your finances and investments can feel complex. A Global Investment Account (GIA), also known as an Offshore Investment Account, offers a tax-efficient and flexible way to grow your wealth while living abroad. If you're looking to diversify your portfolio and protect your assets, this type of account could be the perfect solution. With the ability to invest in global markets, it provides expats in Canada with the opportunity to make the most of their investments while maintaining financial security.
What is an Offshore Account?
An offshore account is held in a low-tax or tax-free jurisdiction, typically in Jersey, Guernsey, or the Isle of Man. These jurisdictions provide significant tax benefits along with strict financial privacy laws, making them an excellent choice for those who value both confidentiality and legal protection in their investments.
These offshore accounts are also highly flexible, offering full access to your funds whenever needed, making them a popular option for investors seeking both security and control over their investments.
Offshore Investment Accounts for Canada
Navigating Canadian tax laws can be challenging. As a Canadian tax resident, you are taxed on your worldwide income, including investments held in both Canada and the UK.
Additionally, Canada imposes tax on 50% of capital gains at marginal rates. For expats looking to reduce their tax obligations, offshore accounts can offer a virtually tax-free solution.
Within these offshore accounts, no capital gains or income tax is paid, allowing your investments to grow in a tax-free environment while 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 In Canada
For UK expats in Canada, there are many benefits of opening an offshore account with a trusted platform, including:
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Unsurprisingly, the virtually tax-free nature of these accounts makes them attractive to expats in Canada who want to offset some of their tax burdens.
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Flexibility is important for expats, and offshore accounts allow for full-flexible access, and the option to invest both regular savings and lump-sum amounts. They are also portable, allowing you to manage your investments internationally.
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One key benefit is the extensive range of investment options you will gain access to, with some platforms offering up to 80,000 financial products to choose from, including low-cost index funds, mutual funds and ETFs.
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Offshore accounts charge zero initial set-up fees and the ongoing platform fees start from just 0.34% per annum, falling to 0.15% for larger amounts. This allows expats to invest with ease, knowing there will be no hidden fees or commissions.
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It’s important to choose a secure offshore investment platform. Both Ardan and Novia Global are regulated by the FCA (Financial Conduct Authority) and covered by the FSCS (Financial Services Compensation Scheme). This gives our clients the peace of mind and assurance that their investments are safe and protected.
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Frequently transferring investment income from GBP to CAD can expose you to currency exchange risk, which over time can erode the value of your investments, a GIA solves this issue, with the ability to hold and invest in multiple currencies.
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As an expat in Canada, you may be holding assets or investments in multiple countries and currencies. With an offshore bank account, you can consolidate these into one account, which is easy to manage. From here you can work with an adviser to implement an effective investment strategy to further grow your wealth and reach your financial goals.
Investment Advice for Expats In Canada
For UK expats living in Canada, offshore bank accounts stand out as an ideal solution to reduce tax obligations and manage assets effectively.
At The Wealth Genesis, we are fully independent, and fully regulated to help expats in Canada manage their wealth and investments.
To learn more about how you could benefit from an offshore account, book a free discovery call with one of our advisers today.
FAQs
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They will be classed as capital gains and will be taxed at the applicable capital gains tax rate.
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If your existing provider has not said you need to transfer and is happy to have your investments as you live overseas, then there is no issue with retaining your existing UK investments.
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Whilst holding Sterling can help to diversify your assets, if you intend on retiring in Canada and remaining there, it is usually advised to hold in your local currency to mitigate future fluctuations.