Many people do not have the idea of what exactly is the meaning of an offshore bank account. It is a bank account which is regulated under international banking license, which usually prohibits the bank from establishing any business activities in the jurisdiction of establishment.
While opening an offshore bank account, you have to keep certain things in your mind.
Firstly, you can select any country other than your own one that gives you the facilities of opening this type of an account. For example, if you are an American citizen, you can think of opening an account at Hong Cong, Singapore or Chile.
Secondly, you must remember that the days of numbered bank accounts and intense secrecy are over. There are several short forms you will need to fill up each year, one with your tax return and another sent in separately. You have to declare all your accounts at a time within one calendar year.
Thirdly, you have to focus on your goal. Your offshore bank account will be under taxation rule of the respective country in which it is opened. Your home government will know about it but they will not have any command over your offshore bank account.
Fourthly, the concept of offshore account will give you more freedom to choose the interest rate of which country you want for your offshore bank account. There are countries that offer a very high rate of interest for offshore bank accounts of people of respective countries.
The most important information is that an offshore bank account is not shady, scary or difficult to open. You can open it with a not very high amount after completion of some formalities. In some cases you have to visit the country for which you can take a vacation to do the job. There are some countries where you can open your account through just an e-mail.
There are some myths about offshore bank accounts around the world, that is :
1) only super rich can afford an off shore bank account
2) offshore bank accounts are illegal or used by criminals only. These myths do not have any connection with reality.
An offshore bank account offers so many advantages
1)Privacy- by shielding the financial identity it helps its customer to escape the attention of greedy lawyers and to experience some kind of economic freedom which one can never find with a domestic account.
2)Wealth held offshore is harder to reach for anyone who might want to get their hands on it.
3)Many offshore banks will not have interest taxed at source like your home bank account.
4)Multiple currencies will be at your fingertips which will make transaction easier for you 5)The best advantage given by an offshore bank account is that you can do international transaction with no hassles at all.
Many startups, on line business and private investors have benefited from offshore bank accounts. Are you interested in opening one? Visit our website and take your decision accordingly.