Last Updated on Mar 12, 2020 by James W
Looking Forward to take your business to greater height? Read this – Offshore Banking Explained
Offshore banking – what is it?
Offshore banking means opening a bank account in a location outside the country you are currently living in. The main reason for any company or individual to open the offshore account is to capitalize on jurisdiction that offers a low or zero percent tax on their wealth. However, this is not all. If you are thinking that offshore bank accounts only deal with monetary scams or is just a way for hiding profits about your unreported business earning, you will be surprised that there is more to it.
Why open this account?
To date, offshore bank accounts are offering a lot of benefits to business owners. With the current globalization and advancement in internet facility, there are greater benefits to opening offshore accounts. Some of the benefits of opening such accounts include;
*Increased privacy about your money – most offshore banks work under strict rules and do not disclose any private information relating to their client’s financial status. This is the best news for business owners wanting to keep their cash hidden from creditors.
*Better interest rates – most offshore accounts have lower overhead cost due to lesser government regulation and intervention. For this reason, they offer higher interest rates than the domestic banks which have higher overhead cost.
*Enhanced security and protection for your money – Many people put money in offshore accounts due to instability in their current countries’ financial conditions. These banks ensure that your money cannot be frozen.
*convenience – with internet banking, faxing, e-mail and telephone, you have easier access to your money. You can easily transfer money to any bank that you want – this is convenient to business owners who travel frequently.
Other than the above benefits, you will also enjoy the following advantages by opening these accounts;
*Decreased Tax Liability
*Potential High Interest Rates
*Easy Access to your Deposits
*Protection against Financial Instability or Home Country Political instability
*Diversify business investments
With that said, it is crystal clear that offshore accounts are definitely an advantage to any business owner looking forward to take his/her business to greater heights in the near future. But, how do you choose the best offshore bank account to open?
How to find the best offshore bank
Finding the best offshore bank account that meets your needs is one of the most important steps a new offshore investor must take. Choosing the wrong offshore bank could result in paying a lot of needless fees and potentially not providing the level of privacy and asset protection you seek. To ensure this does not happen, I have put together a list of few tips that you can consider when looking for an offshore bank.
1. Choose the bank with zero or little taxes on their offshore accounts.
One of the advantages of opening offshore bank accounts is protecting your money and getting some tax advantages. Therefore, why settle for additional expenses and there are so many offshore banks offering zero taxes. By simply searching on the internet, you will find the right offshore bank which fits your requirement.
2. Get a good offshore financial advisor to guide you in the process.
Finding an experienced and skilled offshore financial advisor will help you save time and money in the long run. Ideally, he/she should be knowledgeable in the different offshore banks and should have excellent financial skills when it comes to making the right financial decisions. Your goal is to find an advisor who can match your investment strategy with the best offshore bank account.
3. Use debit cards rather than credit cards.
Debits card are usually free and can be used everywhere. Compared to credit cards that a more expensive and can be used in specific shops, the debit cards are definitely the better option. In addition, debit cards do not have the paper trial that credit cards. This makes them more secure.
4. Get a bank that accepts transaction in other currencies rather than the American dollar only.
Opt for a currency that promises to be stronger in the next few years. This is helpful when the value of the dollar drops.
With these tips, you are in a better position to find the best offshore bank account. One of the best offshore back account to open is the one provided by the offshore company services GWS.
That is all there is to know about Offshore bank accounts. I hope the information has been of great help.
written by: geevet