Offshore Banking explained

In general terms, any bank account that you open outside of your home country (your country of residence) is considered to be part of offshore banking. If you open up a personal account overseas it is known as a personal offshore bank account, it’s as straight forward as that. There are many benefits for opening up an offshore account, you will really notice this when it comes to doing your taxes. Decades ago offshore banking was seen as something that people did when they wanted to hide their ill gotten gains, but in the modern world of finance it is seen as an extremely sensible legitimate way for you to improve your financial portfolio. It all seems simple so far, but there are key details that everyone should know about offshore banking before they open an account. Here are some great details about things you should learn.

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What’s the difference between an offshore bank and my local bank?

When it comes to looking at the service and benefits that are offered by offshore banks it is very similar to what you would expect from one of the major high street banks. The offshore accounts will come with a debit card, credit card, internet banking and a twenty four hour customer service number. You will be able to open an account without visiting the country where the bank is located, you are now usually able to open an account by post.

Are there really tax benefits?

In a word, yes! There are definitely tax benefits to be had if you choose an offshore account. An offshore account is open to a lot less scrutiny from your home government when it comes to the amount of tax that you owe. Some of the larger offshore locations are now having to become more accountable and report large accounts to governments, but there are still sovereign states out there that offer a huge amount of privacy. One of the main aims of offshore banking is to minimise the amount of tax that you are liable to pay. They will also offer you great interest rates, you may even be entitled to some of the incentives that are on offer for non residents of the offshore bank’s country/state.

Can I open a corporate account in an offshore bank?

Yes, there are many companies around the world that take advantage of offshore bank accounts and the benefits that come with them. You don’t need to be a huge multi national outfit to open a company account overseas, You will reap a lot of tax benefits if you open an account overseas and then try to make your company incorporate your company overseas to enjoy even more protection. Offshore banking is becoming increasingly popular with companies because they are recognising that banking offshore is as safe and secure as it is in a high street bank – the difference is that the offshore banks win hands down when it comes to the benefits that are offered.

 

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