You have heard people talking about the benefits of an offshore account, but what is it? How does it work? Is it even legal? (hint: yes it most certainly is legal!)
An offshore bank account is any account set up by someone in a country outside of their country of residence. It may sound a bit complicated but it’s really quite simple. For example, any expatriate living abroad most likely has a bank account in the country in which they currently reside. This allows them access to funds and a place to deposit funds in their local currency. This is an example of one kind of offshore account.
But why would an offshore account appeal to a new business or business owner?
Offshore accounts carry with them many benefits. These include:
- Low or no taxation: Depending on the location, the interest earned in these accounts carries low or no taxes.
- Easy access: Debit cards allow for worldwide withdrawals, and internet 24/7 account updates.
- Excellent customer service: Private bankers show the utmost care for their preferred customers.
- Discretion: Offshore banking centers pride themselves on providing the highest level of discretions and professionalism. The offshore account can be made with complete anonymity, allowing for a level of asset protection not available to this who use regular banks.
- Creative banking solutions: While somewhat less regulated by large banking authorities, legitimate offshore banks are able to offer creative investment solutions to those who require them
- Stability: The offshore account in an established banking center can be a bastion of stability when there is political or financial turmoil at home.
The offshore bank is an excellent solution to encouraging company growth especially when paired with an offshore incorporation. . It pays to investigate this option thoroughly and investigate how it may benefit you and your new business.