With so many countries promising special incentives to foreign investors, it is reasonable to ask yourself, “which offshore jurisdiction is right for me?”. While there is no one-size-fits-all answer to this question, certain countries hold a better reputation and are therefore more popular than others.
For example, countries like the British Virgin Islands, Cayman Islands and Switzerland each offer exceptional tax benefits to non-residents, whereas Venezuela, Syria and Ukraine hold unfavourable conditions, such as hyperinflation, civil war and political instability. But why do considerations like this matter? Let’s discuss:
An offshore bank is only as good as the jurisdiction it resides in. So, when choosing the right location for your offshore personal or business account, you should aim for one that is politically, socially and economically stable. That way, you won’t have to worry about the security of your assets or steep currency fluctuations.
LOWER TAX RATES
Offshore bank accounts are often associated with negative connotations, such as tax evasion and criminal activity. But the truth is, when you follow the rules at home and offshore, reducing your taxes through offshore banking is perfectly legal. It is also one of the main reasons why companies choose to bank offshore.
HIGHER INTEREST RATES
Depending on your chosen jurisdiction, offshore banks can offer higher interest rates on savings than that in your home country. And, like standard savings accounts, offshore accounts are widely available with both variable and fixed interest rates. It is, however, important to keep in mind that variable rate accounts generally offer easy access to your money, whereas fixed rate accounts require you to lock away your savings for between one and five years.
Many offshore banking jurisdictions have enacted confidentially laws for corporate and personal banking. These laws give you, as the account holder, strict anonymity and ensures that your information is kept safe and undisclosed. This is something you should consider when choosing the right jurisdiction for you, especially if you are a high-profile citizen or someone who’s wealth is prone to attract creditors or even ex-spouses.
GETTING ADVICE Turner Little’s trusted advisors can guide you towards the best jurisdiction for your needs. Whether you require a single personal Offshore Bank Account or Corporate Offshore banking for your business, we can arrange a bespoke account anywhere in the world, regardless of where you call home. Get in touch today to discuss your requirements.