Advantages of offshore bank account

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    At the present time, offshore bank account for businessmen from different countries is a completely necessary tool for business development. The opening of an offshore account both for private and legal entities is a completely legal act, as well as adding and withdrawing funds from offshore. The higher level of asset security is unquestionably among the numerous benefits of an offshore bank account. Alternatively, offshore jurisdictions can offer particularly favorable tax conditions and, importantly, a much simpler and more transparent taxation process.

    However, an offshore account allows not only protecting funds but also being active in international business. A bank account in a safe and stable country, both economically and politically, is a very attractive solution for citizens of troubled countries exposed to economic and political crises.

    What is an offshore bank account?

    Advantages of offshore bank account
    The offshore account offers the opportunity to easily manage your funds regardless of the situation in the country of your residence.

    Basically, any banking account opened in a foreign country can be called an offshore account. However, in the world practice, accounts are called offshore if they are opened in low-tax or tax-free jurisdictions. Regardless of the country, but according to the bank, you can either get a classic offshore checking account and an advanced offshore banking solution.

    The following types of accounts let you use all advantages of an offshore bank account:

    • Fixed deposit account. It is a bank account for storing funds and buildup interest within a defined period of time, depending on the term chosen by the client of the bank.
    • Card account. Typically, these are bank accounts with debit or credit cards integrated. Certain banks allow cards to be attached to a checking account, while others demand an independent card account.
    • Brokerage account. This is an account for stock market transactions, FOREX investments, and other brokerage activities.
    • Private or corporate banking account. This type of account is used for individual or business customers wishing to invest, buy securities, build an investment portfolio, etc.
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    Anyway, before opening an account, the bank manager will certainly offer you, to begin with, a classic checking account for banking transactions. This main product is also a tool for the bank to learn you better as its customer and you could estimate all advantages of offshore bank account. Soon after, being fully aware of your needs the bank could propose the most appropriate services package, whether it is investment banking or operating.

    The offshore account offers the opportunity to easily manage your funds regardless of the situation in the country of your residence. It is a decent tool for managing and protecting funds for both a private and a corporate person. And now let’s look at the main strengths of offshore banking.

    Reducing tax costs

    Bank deposits are taxable in many countries. For the avoidance of this object of expenditure, it is enough to put your money in an offshore financial institution. Most of the classic offshore banks offer the opening of an offshore account on safe and confidential terms. However, it is important to become familiar with the operating environment and understand the future trends of the bank and the country of a financial organization. If your main goal is to reduce taxation costs, then keeping your money in the financial institutions of classical offshores such as Belize, British Virgin Islands, Curacao, etc. would be a wise decision.

    Improved credit availability

    Annual lending interest in different banks may vary. Nevertheless, it’s possible to find very attractive propositions. A non-resident will not be able to expect to receive a loan, but a depositor of an offshore bank with a good client reputation may apply for a loan to the same bank.

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    Privacy of sensitive data

    When you open an offshore account in another country, you may not worry that your data will be disclosed to third parties without your consent or special court order. One of the essential benefits of offshore accounts is that banks can guarantee the safety and confidentiality of information from third parties who may be your creditors, competitors, raiders, or others who wish to harm you.

    Efficiency and reliability

    It is no secret that financial institutions, for example in the Netherlands, Austria, Switzerland, which have worked for several centuries and have experienced various economic, political, and natural disasters are much more reliable than banks-new-builds, appearing and going bankrupt at breakneck speed. Owners of offshore accounts can find a really reliable bank to keep their savings.

    The ease of annual audits

    If you opened an offshore account in the classical offshore zone, the annual audit reports will be held under a simplified scheme. This is enough weighty argument for those who don’t want to waste time and money on unnecessary paperwork.

    How to choose the decent offshore financial institution

    You need to be very careful while choosing the bank where you want to open an offshore account. It’s necessary to study various options and weigh all the advantages and disadvantages of this or that organization. It is essential to know about the terms of opening your chosen type of account, about the interest rate, transaction limits, presence of secure online banking, and many other things. When selecting a bank to open an offshore account, be sure to pay attention to its reputation (if the name of the bank is associated with high-profile scandals, it is worth looking for something else) and reliability (the way this financial institution has experienced the recent economic crisis, whether there are disgruntled depositors, whether its reliability is backed by government guarantees, etc.).

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    Speaking about offshore opportunities it’s necessary to admit that offshore countries can be used for different tasks, but some are better suited to specific conditions.

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    • Portugal: the best suitable state for registering a company and a reliable bank account in one country.
    • Curacao, Malta: the best option for obtaining a gambling license.
    • Marshall Islands: appropriate for the ownership of ships and Internet business.
    • USA, Canada: perfect for working in the global market with the ability to reduce the tax to zero and at the same time get a well-deserved reputation.
    • Nevis, Cook Islands: for assets protection.
    • Estonia, Lithuania, Malta, and others: appropriate for the initial coin offering (ICO) and issuing of electronic currencies.

    A corporate bank account is an important part of the business. It can be opened remotely, over the Internet, although not all banks are ready to follow that path. To open such an account the applicant will need more documents. Unlike private account document requirements, they must be not only personal but also corporate, accompanied by a detailed description of the enterprise, activities, and structure. Banks can ask a lot of questions and make a decision only after they will be provided with detailed answers. Also, nowadays many banks practice remote interviews via WhatsApp, Skype, and other messengers.  A well-suited offshore jurisdiction, bank, and an account allow focusing on business and customer service rather than red tape.

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