Many myths surround the opening of an offshore account. These myths are, well…just that…myths. The truth is that many businesses around the world are benefiting daily from their offshore accounts in ways you may not have imagined.
One common myth about offshore banking is that the offshore bank account is somehow illegal to have one. This is far from the truth! The only requirement is that you comply with the laws of your home country in terms of declaring that account. For some people, like expatriates, having that foreign account is an integral part of their daily life—access to cash in their own currency and a place to put their pay check.
Another myth is that offshore bank accounts are hiding secret funds, stashed after being earned by some nefarious purpose. This too is far from the truth concerning the vast majority of offshore accounts. The vast majority of accounts are opened by legitimate businesses looking to effectively “cash in” on their profits.
What does the offshore bank account offer their owners? There are many benefits to the offshore bank account. First and foremost, they often offer better terms and conditions that other banking arrangements in your home country. This includes taxes as well as commissions and fees. They are also able to offer more creative banking solutions, which can be a refreshing alternative.
Offshore banks offer the new business the ability to work in variety of currencies—both paying out (imagine a supplier who works in yen) and accepting payments in a variety of currencies (imagine you have euros, dollars and pounds to deal with). All of these currencies are dealt with without any issue. This is usual for foreign bank accounts, they are skilled and practiced in handling such cases.
The last myth is that only the phenomenally wealthy can afford to keep an offshore account. While it may add a bit of mystery to your financial portfolio, this is hardly the case. Every day regular citizens are seeking out better solutions that are offered in their home countries and moving to offshore banks all over the globe.