Banking offshore has been used successfully for tax reduction and asset protection by both individuals and worldwide organizations for decades.Despite what you may have read or heard, anyone is free to open an offshore bank account nowadays.There are so many offshore banking providers offering a wide variety of account type and they are located in low to no tax jurisdictions worldwide so how do you choose which country to bank in? Again, depending on an account holder’s personal circumstances certain offshore jurisdictions will present themselves as being more favorable.
So, think carefully about exactly why it is you need an offshore bank account and what are the features of that account that are essential to you. Do not be tempted to add to this list any unnecessary complexity.
An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction or tax haven that provides financial and legal advantages. So to open an offshore Bank account you need to take prior approval from the country’ Central Bank (RBI in case of India) and Government. It would be illegal if you open an offshore Bank Account without taking prior approval from your own Government which is not required in case of normal Bank Account.
So, an offshore bank is a tax haven as its in another country. Swiss bank is a good and infamous example then i guess. Correct me if i am wrong, i have heard billions of dollars are there in Swiss bank and the bank accounts are numbered and no other country has jurisdiction on it?