You work hard, which is why you want to protect your property. One of the best ways to get this protection is by purchasing property through an offshore company.
Read on to learn about the benefits of offshore purchasing, and why you may want to consider it now.
Why You Should Own Property in an Offshore Company
Offshore companies allow you to easily protect your property and take advantage of better tax laws while avoiding probate.
If you’re committed to building your wealth, owning property is a must. Diversifying your investments allows you to reduce risk, and real estate generally rises in value over time.
Here’s why you should consider purchasing property in a company offshore:
1. Minimize Probate
When you pass away, you naturally want your loved ones to be taken care of. But when you own property in your name, your heirs will need to deal with probate, a tax that occurs when a property is passed on after death.
When you use an offshore company to purchase the property, you can often eliminate probate entirely. Instead of navigating inheritance laws which may not be in sync with your wishes, you have much more control. Many jurisdictions allow for an entity or its shares to be directly inherited instead.
2. Protect Your Assets
While an LLC or corporation can provide some asset protection, purchasing property through an offshore company is the most effective solution. In this modern age, frivolous lawsuits are almost a national pastime.
Instead, you can ensure your assets are not vulnerable to attack by a vengeful plaintiff. The more barriers you can put between frivolous lawsuits and your assets, the better.
Even if you’re not particularly worried about asset protection, internationally diversifying your investment property is a smart move. For many people, offshore companies can make this option much easier, thanks to laws in many countries that prevent foreigners from owning properties and other assets.
3. Enjoy Tax Benefits
One of the biggest reasons why many people in the United States use offshore companies to purchase property? Tax benefits, specifically the 1031 exchange.
The 1031 exchange allows buyers to defer the capital gains tax by rolling their original principal and their return into a new property.
You’re probably well aware of the power of compound interest. But if you deduct 30% of the capital gains tax from your profits, it can be the difference between retiring in style, and barely scraping by.
The 1031 program is just one example of the tax benefits you can receive by purchasing property through an offshore company.
You may also enjoy a tax-deductible mortgage interest subject to the mortgage conditions. This benefit requires you to prove that you plan to purchase another home as a future retirement property or vacation home. You could potentially write off up to $1 million in mortgage interest.
We advise you to contact your resident tax lawyer for further information concerning the benefits you can enjoy from owning property offshore.
Want to learn more about how you can diversify your investments? We can help create the structure for you! Get in touch with us today, and enjoy all the benefits we talked about and much more.