As a result of the huge amount of misinformation concerning offshore banking, it has become something that people avoid. It is believe that it’s an illegal act, however, the truth is it certainly isn't. It does not matter if it is for personal or business reasons; without a doubt there are lots of benefits from banking overseas, some of which will be discussed below.
The biggest problem present with banking overseas really is in opening the bank account; most times, the foreign bank requires you to go to their office in person to do this, there are very few banks willing to do this on your behalf. This is one of the wonderful offers Starting Business presents. With the ability to open bank accounts across five continents and more than 40 banks on its list, the procedure becomes so much easier.
From the comfort of your home, you will be able to sign relevant documents and get the full banking package delivered. The stress over opening a foreign bank account is therefore eliminated with this guidance as well as banking solutions through the process.
Despite the promise of stability most domestic banks promise, the truth is that your money may be safer and enjoy interest-friendly policies in offshore banks. Still confused as to why you need to grab such a marvelous offer? Well, take a look at all the following reasons why you need to bank overseas.
To Protect Assets Against Lawsuits
A good number of individuals keep their money in offshore banks, not because they are criminals hiding their loot but because they wish to avoid losing every penny to lawsuits. Whether you are a wealthy or an average individual, it will save you from bankruptcy. It is difficult to protect your wealth when you receive a sudden, unexpected or predatory lawsuit.
But having such an account overseas will protect your savings and can make you immune to financial problems that come as a result of lawsuits filed in your country. Be it business related or personal, like a divorce for example, the other party will not be entitled to your assets stored in offshore bank accounts.
The only way others can have access to your money in other countries is either if both countries have a treaty that allows the direct enforcement of a decree made in one country in another or if the plaintiff files another lawsuit in the offshore country which will be more work on their part. So, it is definitely an additional security measure. Collection will be almost impossible due to foreign exchange.
When You Need Tailored Bank Services for International Business Operations
International Banks make it easier for companies and individuals with international business presence around the world as they specialize in finding the appropriate solution for international businesses. Not only do they have the current financial information to enable safe and fast International transactions, they are also experts in international commercial laws and activities.
With services offering a 24/7 access to your money from anywhere in the world and multiple currencies at your disposal, it is certainly the perfect option for international businesses. With such an account, you and/or your company will not have to set up different bank accounts in each country you do business in.
Not only that, most of these banks offer financial services to facilitate trade and business operations like a payroll service for employees in other countries as well as offering support for businesses facing large costs of importation and exportation.
Assistance with bank account opening in Germany with Commerzbank.
International personal bank account with internet banking facilities for managing your investment needs or wealth management. Commerzbank AG offers stability, security and professional access to capital market solutions.
To Protect Savings and Reduce Political Risk in Country of Domicile
Governments around the world can easily freeze and confiscate your assets without having to prove their case, whether it is reasonable or not. This change will seem like it literally happened overnight. Governments in several countries have recently introduced laws to enable them to easily confiscate people's money.
Banks in the US and Europe are monitored by the government, and mandated to report any activity that seems suspicious; such activity may not be legal per se but withdrawing large deposits could lead to investigation. Such investigation can lead to freezing of assets.
It is unfortunate to imagine that your money is not safe in your home country. Having an offshore account does not only decrease your risk of getting your assets in that bank frozen since it is not that easy or straightforward to freeze foreign bank accounts but it also decreases your chances and protects your business from being affected by political risks in your home country.
When You Need a Low Cost Merchant Account for Website
If you run online and affiliate businesses such as e-commerce Services, media, online casinos, SEO and internet services, forex, fashion stores and other websites where you run merchant services, then you will need this account. It is difficult and more complicated to run a merchant account for these online services in your home country without incurring high costs. Also, clients often feel more comfortable with merchants that use their own local banking system.
A large number of individuals are resorting to the use of such services as PayPal to bridge this gap. Unfortunately for individuals in countries that are restricted, it will be hard to conduct merchant operations on such websites.
This is where offshore banks come in; they offer merchant accounts that accept payments from various currencies without restrictions. Another benefit of using them is that you will bank at low transaction rates, therefore, satisfying your budget as well as your business requirements.
To Diversify Taxes
Would you not like to put your money to work overseas, earn capital gains and pay very little or zero taxes to that country? This is made possible by banking overseas as they may earn you tax benefits for earned interest and investments. Reduced cash in your country of domicile can mean reduced tax liability.
Many people who use such banks globally shelter their money from the country's income and estate taxes. Even Americans that have IRS issues when opening foreign accounts can legally move their money to such places like the Cayman Island, Belize, Isle of man and Panama and pay very low or no tax.
However, it should not be done with the mind of evading taxes since this can easily turn into tax avoidance. To ensure that you are not making an illegal move due to tax division, do well to follow proper and professional advice.
Bank account opening in Mauritius with ABC Banking Corporation.
Personal account in stable and reputable jurisdiction including full internet banking facilities and debit card. High quality banking with IBAN adopted system.
For Better Interest Rates on Fixed Deposits
Often, you will find that offshore interest rates are far better than domestic ones when it comes to a deposit account. Take for instance banks in the United States, they offer between 0.01% - 0.9% compared to Banks in some countries in Europe like Malta and Ireland that offer between 1.50% to 2.10%. Outside these regions, you can also find banks that pay as high as 4%.
Every individual wants to build more wealth, therefore, making the choice of which bank to choose is for a large part based on what you can positively receive money-wise from the bank or country. The option to increase your assets through high interest rates may not be available in your country and the fact that some foreign banks offer better rates make it a money-making opportunity.
If You Often Travel For Business or Medical Care
With Singapore, Brazil, India, Thailand and Malaysia among the best countries with not expensive, yet up to standard health care, there is now an increased use of such services by people. When seeking treatment in another country, it will be a source of inconvenience to keep on carrying the money needed to pay for the bills around on you.
Having an overseas bank account in the country that you seek medical care will be better both financially and medically. Also, if you travel often to such country, you will benefit more if you have a bank there. There will be more flexibility, access to international travel insurance & in some banks, free international transfers between accounts with reduced cost in terms of exchange rates and commission.
Furthermore, it will increase security since you will not have to carry large amounts of money on you. Lastly, for business persons that travel often to a particular Country, Medical agencies will be easily handled.
Assistance with bank account opening in Switzerland with CIM Bank.
International personal bank account with full internet banking and debit or prepaid card for managing your daily banking needs or saving purposes in Switzerland with CIM Bank. Multi-currency bank account will allow to have an access to all your banking operations, international transfers, credit cards and online trading.
Prepare for the Future
A lot of individuals use overseas banks to invest in the economies of booming countries as it is not possible to predict the financial sector of your country. Take Cyprus in 2013 for example, the government bailed out the banking system by removing some amount from people's deposits. This was so unexpected by most residents that they woke up one morning to realize that for some, their balances had reduced drastically while others had been frozen out of the account.
It is always better to prepared for such risks rather than waiting for it to occur. It does not really make sense to hold 100% of your savings in a bank account in your country of domicile. If all points to crisis in the financial sector of your home country, do well to invest in foreign banks that are stronger than those.
Now that you acknowledge the numerous advantages of opening a bank account offshore, Starting Business will not only provide you with all the necessary information you need, but also assist you in the opening process.