Offshore Investment Accounts For Expats
LEARNING OBJECTIVES
We’re passionate about providing high quality, up-to-date and relevant financial information to Expats around the world.
IN THIS ARTICLE, YOU WILL LEARN THE FOLLOWING:
What an offshore investment account is and how it works
How these accounts are taxed
Key benefits of using an international investment account
The best advised offshore investment platform for Expats
How much these accounts cost
This article is intended for individuals looking to invest internationally.
If you live outside the UK and want to invest, choosing the right investment product is key.
For expats living in tax-advantaged locations such as the Middle East, tax efficient investing is far more simple than in areas such as Europe and the US.
An offshore investment account is often the most suitable option. With various providers available, we look at the main criteria for selecting an expat investment account.
Note, that we focus on investment providers to be used with the help of a financial adviser.
What Is An Expat Investment Account?
An Expat Investment Account is a financial account specifically designed for expatriates living and working outside their home country. Held with a regulated financial institution it allows you to buy, sell, and manage a variety of financial assets, including stocks, bonds, mutual funds, and other securities.
Features include online account management, research tools, educational resources, and customer support. Global Investment Accounts, or GIAs, offer expats benefits that regular onshore accounts do not.
UK residents or other well-regulated countries can access locally compliant solutions that can be far more beneficial. These include products like ISA's, offshore bonds and recognised pension schemes.
By using an expat investment account, you can invest both lump sums and regular savings to generate a return on your investment. This can be for shorter terms goals such as buying a property or longer-term retirement planning.
Note this is not a savings account that offers a guaranteed rate of return.
Offshore Investing | Key Considerations
Selecting the right offshore investment account is an important decision that requires careful consideration. Here are the main factors to keep in mind when choosing an offshore investment platform:
Regulatory Compliance:
Ensure that the platform is regulated by a reputable financial authority.
Verify its compliance with international financial regulations and standards.
Security and Privacy:
Assess the platform's security measures, including the custodial services provider.
Consider the level of privacy offered, especially in terms of client information and transactions.
Investment Options:
Evaluate the range of investment opportunities the platform provides, including stocks, bonds, mutual funds, ETFs, and other financial instruments.
Fees and Charges:
Understand the fee structure, including account maintenance fees, transaction costs, and any other charges.
Compare fees across different platforms to ensure they align with your investment strategy and budget.
Currency Options:
Check if the platform supports multiple currencies.
Check the costs of Foreign Exchange transactions.
Accessibility and User-Friendliness:
Evaluate the platform's user interface and ease of use.
Benefits of an Offshore Investment Account
There are several benefits to using a specialist offshore investment account, the key ones being:
Tax treatment:
Tax is deferred upon withdrawal at which point CGT would be due in the country you reside in. For the Middle East, this is zero.
Importantly, the money will always be paid to you gross with no tax held back at source.
Multicurrency:
The ability to invest and withdraw in all major currencies.
Professional Wealth Management:
Via a regulated financial adviser you can have a strategy implemented to align your investment goals with the right level of risk. Choose the types of investments you want to invest in or avoid.
Protection:
Retain the protection and regulation of authorities such as FCA Finanical Conduct Authority and FSCS Financial Services Compensation Scheme whilst not being tied to the UK's tax rules and local currency
Best Offshore Investment Accounts
Factoring in the above for most of our clients, The Novia Global Investment Platform comes out on top.
An offshore investment account is an important wealth management product when implementing your investment strategy.
For example, for those in the Middle East, it can provide tax free growth of your investments whilst you are generating high disposable income. You can save and invest as you please, be it a start-and-stop strategy or park it and leave it.
Expat Financial Advice With The Wealth Genesis
We are the first regulated international financial adviser to charge the same one-off flat-fee to all our clients, regardless of their wealth or circumstances. Our independence and zero-commission approach ensures no conflicts of interest or sales during the advice process.
To understand how an International Investment Account can become a cornerstone of your financial plans, get started with using the button below.
FAQs
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Speak to an expat financial adviser. At The Wealth Genesis, we help clients throughout the Middle East and beyond with their investment needs. Via our Discovery meeting, we can establish your position and main objectives.
From there, after completing the required regulatory forms, a recommendation will be made for the best offshore investment platform and fund range.
Once you have confirmed you are happy to proceed, we can assist in opening your account, and investing into the chosen fund range.
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This means you pay a fixed amount for the expat financial advice you receive. Instead of a percentage or commission, a fixed fee is charged for the investment advice regardless of its value.
For example, see the below case study:
Charlie lives in Dubai and is planning to remain there for the next 8 years before retiring to Asia or Europe . He is single, has grown up children, and earns 6 figures. He has £320,000 in cash savings and £6000 a month disposable income.
He wants to invest for capital growth over the next 8 years before generating an income in retirement.
We recommend Charlie invest £300,000 and £3000 per month into the Novia Global Investment Account.
The fees are as follows:
Initial Advice Fee:
£3000 (equal to 1%)
Total initial Fee: £3000
Ongoing Advice Fee:
0.85% paNovia Global - 0.34%
Total ongoing advice fee: 1.19% per annum
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An FCA regulated platform is UK compliant. As such, there is no need to encash the policy however if you are planning to remain a UK resident for the long term, more tax-efficient solutions like ISAs and pensions should be considered.
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In the event of the account holder passing, the investment account is considered part of the estate. Unlike a UK pension scheme, it cannot pass tax-free to named beneficiaries pre-age 75.
