Benefits of a Luxembourg Offshore Investment Account

14 Jun

Why there has never been a better time to Invest Offshore

Gëlle Fra, detail, World War I Memorial in Luxembourg City

Gëlle Fra, detail, World War I Memorial in Luxembourg City

As a result of media saturation of tax evasion with a negative spin on offshore banking, plus a constant perceived threat of the disintegration of the Euro Zone, due to news from Greece, Spain and Cyprus, many people have adopted the idea that anything related to offshore or Europe is either illegal or too risky. This article is provided to inform that, in fact, the opposite is closer to the truth.

Due to new laws and tax codes being implemented by all the of the G20 Nations, specifically written to clarify and make transparent cross-border investments for tax purposes, there has never been a better time to Geo-diversify an investment portfolio. To put it another way; now is the time to invest offshore.

As far as Europe is concerned, as it relates to a currency collapse because of a possible break-up of the Euro Zone. Rather than attempt to defend the point that the collateral assets and immense pools of private wealth that the leadership thereof would never likely allow a sharp decline in the currency value, let-alone a complete collapse to occur. We’ll refrain from an economics debate but rather point out that having a Luxembourg Investment Account does not necessarily mean that we suggest that an investor have cash, assets, or all other investments (i.e. Gold, Silver, real estate, intellectual property, art, collectibles and other assets) in Luxembourg, or even Europe for that matter.

The Luxembourg investment account can purchase any registered security which means that almost anything registered on any exchange is available. So where is the money? Imagine, for the sake of this example that the Trustee documents are in Hong Kong and the Trading platform is in Luxembourg. The investment assets are held where the registered investment is organized…meaning there is no custodian holding assets in Luxembourg unless the investor buys a registered Luxembourg Fund.

Hong Kong Trustee Organizes Luxembourg Investment Platform

If you organize a Luxembourg Investment Account by means of the Administrator/Trustee of a Regulated, Registered, Recognized Retirement Plan. Then your investments are NOT a Passive Foreign Investment Company (PFIC) and there are no FATCA Foreign Financial Institution Withholding Issues. For an American investor you have simplified your IRS reporting to IRS Form 8938 and FBAR only. This example uses a Hong Kong Excluded Employee Trust plan (it is called excluded because you are not resident in Hong Kong) that is supervised also by the International Organization of Pension Supervisors.

There are 60 member Countries. We have selected Hong Kong because the plan gives you control, allows for the greatest investment choice and because of the Financial Security and Safety of Hong Kong Regulators. The Internationally recognized Foreign Retirement Plan is Regulated, Registered and Recognized. You receive annually a 3rd Party Accounting Audit of your Account from a Hong Kong Government regulated accounting firm.

The Retirement Plan Administrator Trustee opens up a nominee investment account for you in Luxembourg. Luxembourg is recommended because of it has a “Triangle of Security” 100% Asset Protected segregated account safe and secure Regulator System. What is meant by nominee account is that the account is yours in number only rather than in your name. You have access via the internet. From your Luxembourg Investment account you can purchase any marketable security in the World. Most of our Clients purchase registered Mutual Funds, ETF’s, Stock, Bonds which means any security with an International Security Identification Number (ISIN) can be achieved via the internet while purchasing other marketable investments require paperwork.

All Transactions in your account are directed by you and are supervised by the Plan Administrator, the Custodian Bank in Luxembourg, and the Investment Account Administrator. This means you are secure in knowing that you 4 must agree that this is for your own directed purpose.

In today’s world, there is really only one perfect method to invest offshore. That is to use a Regulator Asset Protection Structure, designed to meet the exact criteria tax code of your country.

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