International Investment Taxation

Covered in more detail in the Global Investments section but whatever your investments are how you enter those investments and the Vehicle you use for that

Whatever you invest into the tax structure you set up to enter those investments will be much more important that any greater return than one investment might have over another. This is fundamental part of our business in making sure everything is set up correctly at the beginning. For example, if you were to buy a property in Philippines you would buy it in your personal name but in the United Kingdom you would likely put it in a company structure.

We use real estate to demonstrate this because they are fixed assets that you can’t just liquidate like stock and shares that you can sell in a minute and therefore much easier for countries to tax locally.

The approach to this is very much deemed by the tax rules of where the investment takes place so you need to know both the tax rules of the country where the asset is based and also how you plan to take your proceeds and profits out of the investment in the most tax effective manner possible

To Illustrate this if we take the UK and real estate whilst there are lots of different moving parts you can’t escape the fact that a UK Company pays 19% corporation tax and as an individual you could pay up to 46% tax but in most cases its 40%. Now consider any London property is likely to be in excess of 750,000 GBP that more than swallow up any small tax allowances that the UK Tax office gives you. Also if you use finance a private Limited company can make 100% deduction for interest payments which isn’t the case with individuals. This is just one country but you need to know all this information before entering the investment not when you have already acquired it.