What is Offshore Banking
What is offshore banking is it right for you? Offshore banking is banking with any bank located ‘offshore’, in a country different from the one you are currently residing.
Because of the attractive benefits of offshore banking, many have chosen to open an offshore bank account.
What is Offshore Banking?
Offshore banking is simply banking in a country other than your own. However, most people who opt for opening an offshore bank account do so in countries that has little to no taxation.
The majority of offshore banks are located in islands, such as the Bahamas and the Channel Islands, but offshore banks can also be found in landlocked countries, including Switzerland and Luxembourg.
Benefits of Offshore Banking
The main benefit that comes to mind with offshore banking is tax limitations; it is also the most misunderstood benefit. Very few people qualify for the tax limitations because almost every country requires their residents to report all interest income, even if it is earned abroad. Asset protection and confidentiality are some of the most important reasons why people bank offshore.
Protecting your assets is important because nobody wants to lose everything that they own, but the protection is only as good as the confidentiality laws. Offshore banks are not regulated as mainland banks, so government intervention is minimal. With offshore banks, your privacy is 100% guaranteed. Other benefits to offshore banking include escaping political and financial instability in your home country and higher interest rates.
Disadvantages of Offshore Banking
In answering the question ‘what is offshore banking,’ one must look at the disadvantages to get the clear picture. One of the worst things about offshore banking is the reputation that it has received. When people hear offshore banking they tend to think of the super rich hiding their money so they will not have to pay taxes.
The truth is while some use offshore banking for illegal purposes, it is a great option for many people who are looking to collect higher interest on their investments or whom simply want to protect their assets. Since the bank is located in another country, visiting the bank is not something you can do easily. Luckily, if you use a reputable company to set up your account there is never really any need to go visit the bank, everything can be done from home.
Is Offshore Banking Right for you?
Now that we have answered the question, what is offshore banking, you must now decide if it is right for you. As you can tell offshore banking has many of benefits, so choosing the right jurisdiction for offshore banking is important.
You can contact us and speak to our reputed financial advisor if you want to know more on what is offshore banking. When it comes to asset protection and higher interest rates, then offshore banking becomes the best choice for your hard earned money or assets.