Offshore banking is the depositing of money in an account in a country which has a low tax jurisdiction. Offshore banking is used for either greater privacy of personal or business wealth, the opportunity to be able to pay less tax as well as having access to a more varied range of investment products.
Offshore banking as an option
There are a number of advantages to offshore banking; whether you are an individual or a large company owner. You can bank in a variety of currencies which can be useful to expats with financial commitments in more than one nation and if the country you’re living in has an unfavourable financial climate, you can hold onto your money in a country which is more stable.
Those with offshore accounts are excellent vehicles for expats who want the maximum flexibility in terms of using their accounts. It means they can access funds online, on the phone or at cashpoints at any time of the day or night.
With offshore banking, the interest earned is often tax free. This means there are higher immediate returns with no need to apply for a rebate which delays having funds.
Having an offshore account offers greater privacy. In Switzerland for example, there is a huge emphasis on maintaining client confidentiality.
Less tax and lower fees
Anyone wanting to protect their estate from inheritance tax may find that an offshore account is beneficial. It’s wise to speak to an advisor if this is a planned financial route to ensure the optimum benefits are achieved.
Offshore banking can mean lower banking charges as well as higher rates of interest in comparison to that offered by onshore banks.
Ease of use
There are now a number of high street banks with an offshore division which means you don’t even have to change your bank – just swap to an offshore account. There’s every chance you may be offered your own private bank account manager if you go offshore which means you can have a more hands on approach to assisting with your banking needs. There are also often more investment services and products available through this route which makes the range of banking opportunities wider.