In the past, offshore banking has hit the headlines for negative reasons including tax evasion and money laundering. However, if you play by the rules, offshore banking is a secure and perfectly legitimate way to manage your money well.
The other main misconception surrounding offshore banking is that it’s only accessible for the super-rich. But with minimum deposits to get started ranging from £1 to £10,000 – anybody can experience the benefits of an offshore account.
We’ve put together a list of the top 3 reasons why offshore banking is a surprisingly accessible solution and well worth considering.
If you regularly travel or move to different countries for work, an offshore account can prove to be very convenient. It allows you to keep your bank account in one place, no matter how many times you move.
Offshore banks also offer multi-currency accounts, which enables you to receive multiple currencies. This is particularly useful for those who want to transfer funds between offshore accounts, as you don’t lose out on fluctuating exchange rates.
MORE SECURITY & PRIVACY
Offshore banks allow you to separate your assets. This offers further protection against possible future threats, including divorce lawyers, creditors, legal action or financial disputes.
Other potential threats include weak or unstable onshore jurisdictions. That’s why many people choose to diversify by putting their wealth in a stable and secure jurisdiction through offshore banking. This ensures your assets are safe without the risk of them being frozen or seized.
And for added reassurance, many offshore banking jurisdictions have enacted strict, financial privacy laws and confidentiality agreements. This emphasises the anonymity of account holders, meaning accounts information is safe and never passed onto any third parties.
BETTER INTEREST RATES & REDUCED TAX IMPLICATIONS
Unlike many UK-based accounts, offshore accounts often offer high-interest returns on your deposits, all without any tax deductions. This allows you to obtain more value for your money.
While every jurisdiction has different rules when it comes to tax, offshore banking is known to have perfectly legal, expat tax advantages. So much so that certain countries are referred to as ‘tax havens’, including Belize and Switzerland. This means that they offer minimal tax liability to foreign individuals and businesses, which is especially useful for estate planning.
HERE TO HELP
Interested in an offshore account, but uncertain about which jurisdiction you should open it in? At Turner Little, we have over 20 years of international banking experience to help you make the best banking decisions for your individual or business needs. To find out how we can help you, get in touch today.