Part of your strategy for maximizing the use of your offshore accounts is to make the most of all the available financial services. That includes looking into options for offshore lending. The purpose of the loan may be to finance the purchase of real estate, obtain seed money to open a business, or just to finance some other purchase you will need in the future.
You could use domestic financing for all of these and any other project you have in mind. What’s different are the benefits that can come your way by using financing opportunities through your offshore bank or institution.
Here are some of the advantages to consider before you make any decisions about where to finance your project.
Favorable Banking Laws and Policies
International banking regulations and laws do vary from one nation to another. You can use that to your advantage by learning more about banking laws in any nation where you want to set up international bank accounts. As you look over those laws and regulations, make sure you understand how they apply to non-citizens or even to expats who may choose to retire in those nations.
Dig a little deeper and look at the policies that specific international banks have in place. While all policies must comply with banking laws and regulations in that nation, there may still be some flexibility in how they are applied. Your goal is to understand how the laws and policies in each nation might be more favorable than what domestic lending would provide.
Tax Breaks Not Available in Home Country
The issue of taxes is always something you want to consider, even with international loans or mortgages. You already know what to expect from the tax structure at home. What remains to be determined is the type of tax obligation you would assume by using international financing.
As with banking laws and policies, tax laws vary between nations. You may find that you owe little to no tax on that international loan. There may or may not be an annual fee due by specific dates of the year. Identify all taxes and fees that would apply in a particular nation and compare the resulting figure to any annual tax obligation at home. You’re likely to find that international lending would result in less of an obligation.
Finance in a More Conducive Political and Economic Climate
In today’s world, it’s impossible to ignore the political and economic activity taking place in different nations. What happens in some nations exerts significant influence in other parts of the world. Keeping that in mind, you may find that what’s currently happening at home has a minimal impact on the economy or the political status in the nations where you have based your offshore accounts.
In other words, you may find that opting for international lending would allow you to enjoy a more stable setting regarding political issues and even the state of the economy. Notice what’s happening now and the projections for the next decade or so. Back that up by looking at how the nation fared in years past. Basing your lending activity within that country may be more than a practical financing decision; it might give you more peace of mind.
The team at Caye International Bank can help you explore these options and come up with a plan that’s to your advantage. Contact the Caye team today and learn more about what international lending can do for you.
Submitted by Luigi Wewege, President, Caye International Bank
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