An offshore bank is a term that refers to any bank outside of the account holder's country of permanent residence.
People open an account in a tax-haven; a country that specifically attracts non-resident depositors by offering banking secrecy, legal protection against overseas civil actions, a tax-free environment and private banking.
You'll notice that a lot of tax-havens are in tiny countries or principalities. It's often their main source of income, so they are tolerated by the major powers. Also, they provide a way for people living in oppressive regimes to get money out of the country.
People who can benefit them from offshore banks are either living and working overseas, travelling abroad regularly or have business dealings in more than one country.
Offshore banks offer a centralized location via which they can manage their international transactions easily. It gives instant access to account balances, online banking and transactions in multiple currencies, sometimes at reduced rates.
Offshore banks offers those living in an unstable country the chance to protect their wealth.
However, one of the most common myths is that offshore banks can legally prevent assets from being subject to tax on interest. The 'no-tax' idea is wrong as the personal income tax of most nations makes no distinction between personal interest earned in local banks and those earned abroad, adding clauses to enforce tax payments.
T. O' Donnell has been a offshore banks information facilitator in London since 2000. He has focussed on writing his own software, and promoting this internet web site. This means he can automate your request to save you time and money.
Ease of operation may be even more important than lower taxes. If you are planning to set up a company (other than a bank or other finance related company), then you will find certain jurisdictions to be more suitable.
Different countries have different commercial laws. There may be big differences in the ease of doing business between them. Keep this in mind when looking for suitable offshore bank options.
One of the advantages of offshore banks is that they provide access to stable jurisdictions. People who live in coutries where there is corruption in the banking system, or where there is a risk of expropriation, or where bank officers may become liable to pressure from criminals, can make good use of offshore banks.
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