Offshore banking is a financial alternative in which investors set up a personal, corporate, or merchant banking account offshore for privacy, wealth management, and investment strategy reasons. An offshore banking account provides depositors with flexibility, privacy, and protection from lawsuits initiated by third parties. Offshore banks are typically located in tax havens and they provide asset security for depositors.
An offshore country’s regulations are often less strict than their domestic counterparts. This makes it possible for more offshore banks to offer financial packages. Offshore banking has become a major worldwide business that stimulates the global economy and circulates two trillion dollars everyday.
The term “offshore” originated from residents of the British Channel Islands, a place in which tax havens were located literally offshore from the United Kingdom. As the original tax haven, these islands became major international banking centers due to their policies on banking privacy and tax regulation. As they grew in popularity, they became the most ideal places for investment companies and wealthy individuals.
Offshore banking centers provide standard services that are similar, if not the same, as traditional resident banks. Investors can open personal checking and savings accounts. A registered corporation can open a corporate account. Depositors manage their accounts online. They move and transfer money. Offshore banks provide their clients with debit and ATM cards, credit cards, and loan packages. An offshore debit and/or credit card is accepted worldwide.
Offshore banks also offer investment and wealth management services. They provide additional corporate administration, trustee services, fund management, and foreign exchange currency conversions. Since offshore banks provide different specialized services, advanced products may not be available at each financial center.
Offshore banks offer private banking services in which clients customize their products. The offshore institution charges less for these services than their retail banking counterparts.
The immediate advantage of an offshore bank is the privacy it offers to its investors. An offshore banking institution is not under any legal obligation to release any of your personal or business information. Unless a governing body reveals evidence of a client’s involvement in a criminal activity, an offshore bank doesn’t disclose personal information about you to any regulatory agency or tax authority.
Since offshore banking centers are mostly located in tax havens, assets grow free from heavy taxation. Thus, tax reduction is another major benefit of investing assets offshore.
Asset protection is also one of the important benefits of investing funds in offshore banking institutions. Holding offshore accounts gives you protection from invasive bureaucracy and third-party lawsuits. This provides the investor with protection from garnishments and seizures.
Harbor Financial Services (HFS)
Harbor Financial Services is a professional company that provides offshore financial advice and investment services to its clients. HFS recommends offshore products and services to suit any personal and/or business need. The company has helped clients find solutions to meet their long-term financial needs. HFS has the experience and the expertise to create the best offshore package for you. Visit http://www.hfsoffshore.com for more information about the company’s products and services.
Disclaimer: Many countries have laws regarding offshore entities and accounts. For example, citizens that form offshore entities, (for example an offshore corporation, offshore trust, offshore partnership, offshore limited liability company, etc.) own stock in offshore entities or hold positions within offshore entities may need to file a tax return. Citizens that form an offshore trust, move assets into an offshore trust or are the beneficiary of an offshore trust may need to file a tax return. Citizens that sign on offshore bank accounts or offshore investment accounts may need to disclose this fact to their government and pay taxes on any interest or capital gains. We strongly recommend consulting with a local, licensed professional to obtain tax and legal advice in order to understand the law and to fully comply with all applicable laws and reporting requirements regarding offshore companies, offshore trusts, offshore bank accounts and offshore investments.