One of the notions regarding an offshore banking account is that it is only for the very rich people. This notion is only true in the sense that most wealthy investors tend to prefer depositing their funds in an offshore account for privacy reasons. In reality, an offshore banking account is very economical. The average individual, rich or working class, can open an offshore account. The process of opening an account is no different from the process at a local, traditional bank. An offshore banking account is just an account that you open in a country or jurisdiction outside of your own. Selecting the right offshore bank and jurisdiction is the first step toward developing a successful offshore banking relationship.
The most evident reason for opening an offshore banking account is the cash-flow advantage. Investors gain interest on their deposits, which are not subject to standard withholding tax typically imposed on traditional banking accounts. One of the numerous benefits of opening offshore banking accounts is that they are often situated within tax havens, reducing or eliminating the heavy tax burden charged to the depositor.
As technology advances, offshore banking institutions continue to offer their customers even greater benefits. Offshore banking accounts come with a standard debit card that depositors can use to withdraw funds anywhere in the world. Offshore accounts offer additional protection for depositors who seek to protect their money from third parties. Investors can transfer and move their money from one account to another, tax-free, without incurring additional charges.
Offshore accounts provide depositors with privacy and asset security. The following represent some additional reasons for opening an offshore banking account.
1. Investor Privacy
One of the significant reasons for opening an offshore bank account involves investor privacy. An offshore account allows an investor to deposit funds anonymously and avoid heavy taxation from resident jurisdictions. With this type of account, depositors can avoid lawsuits from third parties. An offshore banking account is a popular choice for individuals who want to preserve their privacy.
Banking professionals consider selecting an offshore banking account as a way for an investor to diversify his investment portfolio. Depositors who invest in an offshore banking account receive high returns and tax savings globally. Investors gain access to a wide range of global banking services and investment opportunities. They are afforded better currency rate conversions. They also don’t incur the same tax burdens of their home country.
Opening an offshore banking account will require the investor to select a law firm with experience in offshore financial services and international business. Law firms that specialize in drafting agreements for offshore financial packages will provide timely services at an affordable cost to the investor.
4. Banking Services
Offshore jurisdictions with a tax-free structure are the first to offer offshore banking services. Many offshore banks offer a full range of private banking products, but have certain terms and conditions that investors must meet. An offshore banking account provides the greatest protection for corporations and helps clients meet the needs of its customers.
Offshore banking institutions offer traditional services to their investors. An offshore account comes with a standard debit card with a Visa or MasterCard logo. In case the card is lost or stolen, the investor doesn’t have to worry about identify theft because the identity of the investor is not disclosed on the card. The investor doesn’t have to provide an address, a date of birth, or a tax identification number as a prerequisite for opening an account.
Offshore banking has many advantages, some of which include the access to politically and economically stable jurisdictions and lower costs. Investors receive a higher rate of return on their investments. Offshore banking is an aggressive wealth and long-term financial growth strategy.
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 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.