Did you realize that the apartment building across the street could be owned by a company from another country? Your current or future employer may also be partially owned by a firm from Japan, Europe or China.
As the economies of nations become more global and information and money can change hands easier, the popularity and level of foreign investments has dramatically risen over the last several decades.
Foreign investment is when a company or individual from one nation invests in assets or ownership stakes of a company based in another nation.
As increased globalization in business has occurred, it has become very common for big companies to branch out and invest money in companies located in other countries. These companies may be opening up new manufacturing plants and attracted to cheaper labour, production and fewer taxes in another country. They may make a foreign investment in another firm outside their country because the firm being purchased has specific technology, products, or access to additional customers that the purchasing firm wants. Overall, foreign investment in a country is a good sign that often leads to growth of jobs and income. As more foreign investment comes into a country it can lead to even greater investments because others see the country as economically stable.
Foreign International Investment and
When considering an investment into a country, proper attention should be given to the taxation received in the form of dividends, interest and royalties, as well as any possible capital gains tax that could arise on the disposal of such an investment.
Many European Union member states offer Holding Company regimes that are generally favourable with regards to the treatment of foreign sourced income, and most have extensive double taxation treaty agreements.
To view a country by country summary of each of these companies, follow the links below to the Knowledge Base section of our website:
Our international team of lawyers, accountants and trading experts are able to offer you advisory service that includes:
Expertise in utilising double tax treaties;
Specific advice on investment into South America, Asia, Africa and Europe;
Advice on the selection of the most suitable corporate structure;
Assistance with management and establishment of such investment structures;
Advice on utilising structures for international tax planning;
Assistance on overseas property investment;