Offshore mortgages can offer tax benefits for certain people. They can be used to purchase or remortgage UK residential property, whether you intend to live in it yourself or rent it out.
They don’t suit everyone: an offshore mortgage won’t benefit you if you are UK resident and UK-domiciled. But it could be suitable if you are UK resident but non-UK domiciled or not ordinarily resident for UK tax purposes. It could also suit if you are non-UK resident (i.e. an expatriate or foreign national residing outside the UK) or even UK resident or domicile (in certain circumstances).
An offshore mortgage used to purchase UK property can reduce the need to bring funds into the UK where they may be taxed. Another benefit is that the interest, not the capital, is paid out of non-UK income so is not regarded as a taxable remittance to the UK. This could mean you save up to 40 per cent on the interest costs of the mortgage.
For more complex tax planning, an offshore tax structure may be an option.
An offshore mortgage is a complex product but SPF has expertise in arranging such finance. We can assist if you wish to base the loan in an overseas financial jurisdiction, such as the British Virgin Islands, Jersey, Guernsey or the Isle of Man.