Moving Forward with International Investments
International investment can be tricky. However, with the right management team and business structure, individuals can benefit from higher returns and a safely diversified portfolio. Investing internationally is becoming increasingly popular as emerging markets and regions deliver higher returns than the same sectors in developed countries. This is why, at Farmfolio, we help individuals in North America and Europe maximize the returns of their respective portfolios by facilitating access to secure, tangible, and unique assets within Latin America’s agriculture sector. Nevertheless, when setting up the international funds and legal entities that back Farmfolio’s Farmshares, due diligence is key in order to maximize investment security and minimize tax liability. Therefore, Farmfolio offers international investors the opportunity to invest through a Delaware-based Limited Liability Company (LLC), or a Cayman Islands entity, as well as other personalized options.
Moving Forward with International Investments
For instance, in Europe, the Grand Duchy of Luxembourg is the leading investment fund center for the region as a whole. Furthermore, on a global scale, Luxembourg is an investment and financial center second only to the United States. As a small and highly developed country in northwestern Europe, Luxembourg has a total territory of 2.586 square kilometers, which is somewhat smaller than Rhode Island. Likewise, the Grand Duchy has a population of 594.130 citizens, almost 91% of which live in an urban setting, notably the capital city of Luxembourg with 107.000 approximately inhabitants.
To its great advantage, Luxembourg is close to other key economic and financial centers such as Frankfurt, Paris, Brussels, London, and Zurich. Similarly, Luxembourg’s legal and regulatory framework is designed to facilitate the creation of corporations and trusts that are tailored to the needs and preferences of international investors. Moreover, Luxembourg has one of the lowest tax regimes of the industrialized world, while also offering the security of the European Union’s monetary, fiscal, and legal framework.
Additionally, Luxembourg has succeeded in positioning itself as an international financial services hub due to its state of the art infrastructure, its highly educated and multilingual workforce, and its unique ability to manage multi-currency accounts and trusts. Simultaneously, Luxembourg is known for protecting the confidentially of clients and international investors, while also complying with international regulations, such as the Foreign Account Tax Compliance Act (FATCA). Nevertheless, these regulations mainly exist to ensure that the home countries of investors and beneficiaries are notified of the holdings of their citizens, given the fact that Luxembourg does not normally tax the passive or active income of foreigners held within the country.
By working with elite financial services providers in major business centers like Luxembourg, Farmfolio is offering individuals throughout the world a unique opportunity to profit from the advantages of agricultural investment in Latin America. Benefitting the security of an investment that is held within the regulatory framework of the United States, a British protectorate in the Caribbean, or European Union territory, the holders of Farmshares diversify their portfolios through tangible assets in agricultural real estate.