Featured What Is Offshore Banking

Discussion in 'Offshore Company & Bank Account Guides' started by Admin, Jun 20, 2016.

  1. Admin

    Admin Forum Moderator The Forum Cleaner

    Offshore banking- you must have heard of this phrase some time or another or pretty recently if you have been paying attention to the Panama Papers leak. The news is out, what the masses suspected for many years has all been laid out in the open and it is there for all of us to see.


    While most people are happy reading the gossip about the leaked papers, the more finance centric ones amongst us wonder yet again about offshore banking and why almost every celebrity or a rich successful person has offshore banking accounts. What is it about them that is so lucrative to these rich and famous people? The short answer is, a whole lot. For the long answer keep reading.

    What is offshore banking?
    If you ask ten different people or even bankers they will describe offshore banking in ten different ways. It can be taken to refer to the act of conducting banking activities in a currency that is foreign to the native currency of the said bank. But that would be its description from a banking point of view.

    From a more general point of view, it simply refers to any bank account an individual or a corporation holds outside of their country of residence or operation. So a person who is an American citizen and lives in the country but has a few accounts in the Bahamas and Belize would be said to practice offshore banking. It is as simple as that.

    Why would someone want an offshore banking account?
    Ask a person off the street and they will tell you that anyone who has an offshore bank account or is involved in running a company in a tax haven is trying to evade tax or do some kind of a bad thing but this is not always true. Sure there are bad elements in society like drug dealers and gangsters or other kinds of fraudsters who might want to hide their money in a secret place but not every rich person who does it have the same reason.

    For example, a lot of rich people do it, as they want to safeguard their money against any political or economic downturns in their country of residence. People who have hard earned a lot of money want to keep it in a safe haven where any external events won’t see it going down the drain in a single instance.

    Remember the bankruptcy of Lehman brothers? They were such a huge multinational organization that no one could’ve ever predicted their downfall. It is like saying that JP Morgan will go but soon. But it did happen and when it did, it was proven that they were nearly insolvent.

    Take for the matter the fact that the US government’s net worth is minus 17 trillion dollars and that for us is the most prosperous country in the world. Is it any wonder then that a lot of rich people in the US want to go for the offshore banking option but are forced to stay in their own country coz of the strict, almost dictatorial laws of the IRS.

    In a nutshell, when you have a poor capitalized banking system that is backed by an insolvent central reserve and a government whose net worth is massively in the negative, you’d be better off looking for offshore banking option in jurisdictions that are much more stable.


    Other benefits of offshore banking
    Apart from security and a strict sense of privacy an offshore banking jurisdiction also helps you in ways of taxation. Place where these banks are usually located are often referred to as tax havens as the rate of taxation on income and capital gains in such jurisdictions is often considerably lesser than your home country.

    In many of these places you get a chance to earn a lucrative interest in your savings and at that, the interest earned is almost always exempt from tax.

    With an offshore account you have the option of dealing in currencies other than, your own which means that you get to enjoy the stability of a foreign currency investment. Even if the currency of your home country devalued greatly, your funds would be safe nonetheless.

    Offshore banking provides you with a piece of mind and a chance to maximize your own personal freedom. Whether it is about safeguarding your financial resources or diversifying for gains, offshore banking is without a doubt the way to go for people who want to plan their financial future soundly.
    utibi, I'mRobot, maxmoney and 21 others like this.
  2. Gunter

    Gunter Building Trust Entrepreneur

    Offshore banking can be great for people living in countries where even in 2016 a bank account as we are used to have it is not common. Some countries still don't use bank accounts for transferring money to their employees. So a offshore account comes handy.
    utibi, I'mRobot, maxmoney and 2 others like this.
  3. SasxInc

    SasxInc Building Trust Entrepreneur

    It is noticeable that, now common public also thinking that they should have an offshore banking account. But 10 years ago, only stars and big wealth person went for that.
    mert and burden like this.
  4. burden

    burden Member

    Great share Admin as usually. Offshore banking is a very good idea if you live in an unsecured country like I do in Romania.
    Gunter, maxmoney, DeMajor and 2 others like this.
  5. kolagin

    kolagin Active Member

    I would like to know.. what is an offshore bank account in real? I have read about Cyprus bank account on this forum a 1000nd times but it is never mentioned to be offshore, is it considered offshore banking and if not what country is?
    utibi, pesto, wonderwilly and 5 others like this.
  6. Lyanna

    Lyanna Well-Known Member

    I made more research on Offshore Banking and Good lord! It is a good way to save some cash from these greedy local government banks in my country!
    aizcold, CoinMaster, pesto and 4 others like this.
  7. Lyanna

    Lyanna Well-Known Member

    Offshore bank account are those banks that are based on Tax Haven Countries such as Singapore, Netherlands , Cyprus and etc ..

    More information about it here -> Offshore bank - Wikipedia, the free encyclopedia
    CoinMaster and Gunter like this.
  8. Lyanna

    Lyanna Well-Known Member

    I agree! Now that I've read a lot of good sides and information about Offshore banking, I wanted to try it myself. But I wonder which country is the most stable right now in terms of offshore banking? I might need to make more research about this...
    aris likes this.
  9. SasxInc

    SasxInc Building Trust Entrepreneur

    Recently i have read a post of admin about offshore banking in Canada. He has suggested HSBS bank of Canada that named as Hong Kong bank Canada. You can give some concern about that.
    aris, vitomerchant and fireserve like this.
  10. Lyanna

    Lyanna Well-Known Member

    I think Canada is good, but some of my friends says the cost of living in Canada is greater than other countries that's why I'm worried about choosing it..
    lostman and fireserve like this.
  11. Jack Dui

    Jack Dui Building Trust Entrepreneur

    Yes, living cost is high there. But as you just opening bank account there & that would be offshore banking...you no need to worry about...cheers ;)
    lostman and crispgo like this.
  12. Lyanna

    Lyanna Well-Known Member

    Thanks for the information. By the way, do you think Canada is better than Netherlands in terms of IT companies? Since Canada have fast internet with decent pricing..
    crispgo, GoGoldPro and vitomerchant like this.
  13. Jack Dui

    Jack Dui Building Trust Entrepreneur

    Somewhere in this forum i read, for IT related business Netherlands is the best choice for it's affordable high speed internet & IT friendly laws.
    GoGoldPro likes this.
  14. Lyanna

    Lyanna Well-Known Member

    I just checked some of their internet service and prices and I was like 'wtf' and 'wow' . I wish my country could be like Netherlands in some way
    fireserve and Jack Dui like this.
  15. Jack Dui

    Jack Dui Building Trust Entrepreneur

    You seems very good in research. Great work Lyanna:)
  16. Lyanna

    Lyanna Well-Known Member

    I'm not that good to be honest ^_^ , I just simply type everything I want to know in Google and read and read and read until I find the answer haha
    vitomerchant likes this.
  17. fireserve

    fireserve Super Moderator Business Angel

    Why do you want to be in the Netherlands with your business, honestly I don't trust this country to stay an tax heaven as it is now. Soon the EU will overrule all their tax policies and regulations and demand them to streamline it with the rest of the EU.
    Gunter, cangarooo, mert and 1 other person like this.
  18. Brittni657

    Brittni657 Member

    Does illegal money is deposited in offshore bank accounts? Can government catch this accounts?
  19. vitomerchant

    vitomerchant Offshore Agent

    They can catch this account if they get a tip from someone, otherwise they never find out. It's a very complicated process for the authorities to get access to funds at the end of the day.
    maxmoney, CoinMaster and cangarooo like this.
  20. zohoman

    zohoman Building Trust Entrepreneur

    An offshore bank account is nothing else than a normal bank located in an offshore jurisdiction or did I miss something somewhere?
    lostman, maxmoney and Admin like this.