‘Offshore’ is a term that is used to describe something that is located outside of your national boundaries. Therefore, an offshore bank account is one that is situated in any country besides the one you live in. There are many companies and individuals who capitalize on offshore bank accounts because of the relaxed regulations and the possibility of avoiding tax. This is completely legitimate. However, there are those that use offshore financial institutions for illicit purposes, such as tax evasion and money laundering.
Why Would You Benefit From Offshore Banking?
• Stability – A lot of people use offshore bank accounts so that they can avoid the risks associated with the country they currently live in. This is beneficial if you reside in a place that has a less than favorable economic climate.
• Bank in different currencies – Expats, or other individuals who have financial commitments in more than one nation or currency, can take advantage of the banking in different currencies.
• Flexibility – Aside from the points that have already been mentioned, another benefit associated with offshore banking is flexibility. You will find that a lot of offshore bank accounts have been designed with this quality in mind. Flexibility is represented via the ability to access funds over the phone or on the Internet no matter what time it is.
• Protect your estate – In some instances, individuals open offshore bank accounts in order to protect their estate from future inheritance tax. When opening an offshore bank account to protect your estate you need professional assistance from a company offering wealth management. You should hire an hire an estate litigation lawyer for specialist advice. This is crucial as this can be complex.
• Improved client confidentiality – One of the perks of having an onshore bank account, which a lot of individuals are not aware of, is the fact that you may benefit from higher levels of privacy. Some jurisdictions, such as Switzerland, place a much higher emphasis on client confidentiality.
What Are Some Tips For Offshore Banking?
• Professional advice – First and foremost, it is recommended that you seek professional advice. They will be able to assess your situation and tell you whether an offshore bank account is right for your circumstances. Moreover, they will help you to find the right offshore account for you.
• Your mother tongue – You should find a jurisdiction where the main language is English. This is something a lot of people fail to consider and they end up regretting it. After all, there is nothing worse than phoning up the customer support line to be greeted by someone who doesn’t have a clue what you are saying.
• Access to your funds – As mentioned earlier, one of the main advantages associated with offshore banking is flexibility. However, you will need to ensure this is the case. Do they offer online banking? What about a 24-hour telephone service?
• Regulation – Last but not least, it is vital to select a jurisdiction with appropriate regulation. This is crucial when to comes to the protection of your assets. Again, this is something your financial adviser will be able to help you with.
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