A simple aspect of offshore banking is seen in offshore savings accounts. In many tax advantaged locations interest on deposits is not deducted. Although the saver may need to declare savings interest "back home" the ability to let savings compound throughout the year on the untaxed balance will increase the return on your savings.
Interest on a certificate of deposit may be paid quarterly offshore but not be taxable in your home jurisdiction until you return the money to your home jurisdiction. Tax laws will vary from country to country and from offshore jurisdiction to offshore jurisdiction. However, banking in tax advantaged jurisdictions will usually save you money.
If you allow your savings account to accrue over the year and pay taxes "back home" only at year's end you will make a higher compounded rate throughout the year with will in turn accrue over the years ahead of what you would have seen with an account that stayed in your home country.
This same principle can apply to trusts, off shore funds, and investment bonds as well. If you are uncertain about the tax laws in your home country talk to your accountant. If you want to find a stable, trustworthy offshore banking jurisdiction you should talk to an offshore specialists about this.
Offshore funds, trusts, and investment bonds may be treated the same way depending upon your country of origin. In this case interest compounds tax free and is not taxed offshore upon withdrawal which is when the income from the investment vehicle will typically be taxed back home.
These any many other advantages becomes available by going off shore. Then the next question arises, about where and how to invest and save in tax advantaged locations.
Belize Offshore Banking
Opening an offshore bank account in Belize is easy. You do not even need to go to the bank. You can be introduced to a reputable, competent, trustworthy bank in Belize. You can set up your account online and by fax.
Belize has local, Belize banks, and international banks doing business in Belize. An offshore specialist can easily help you with the right banking choice for your needs. The banking guidelines in Belize provide you with unparalleled privacy and security in handling of your accounts and transactions.
In order to open an account in you need only provide your full name and a copy of your driver's license or passport, proof of your address, a utility bill for your address, and a reference from your current bank. Ideally you will need to have had a two year relationship with the bank that provides your reference.
Although the bank will need this information to open an account your personal information is not available to third parties without your knowledge and consent. You can do all of banking with your Belize offshore bank online from anywhere in the world.
Offshore Banking
This simply means that you bank in a country outside of your own. Banking offshore usually offers tax advantages as offshore bank interest is not taxed in the offshore location. Also offshore locations offer confidential, secure and convenient banking with access to your account from anywhere on earth.
These banks allow you to set up your accounts and do all of your banking on the internet. You never need to visit the bank. Many companies offer services and will help you choose a bank offering exceptional privacy and asset protection. Besides the advantages of banking tax free the banks will guard your privacy so that you can do business anywhere in the world without the world looking over your shoulder.
How Is a Belize Bank Account Taxed?
The answer is that a Belize offshore bank account is not taxed in Belize. Depending upon the tax laws in your home country you may have a tax liability there but income from your Belize account is not taxed and not reported to anyone except you.
Interest on money in your Belize offshore bank account is paid without deducting for taxes. Belize banks deal with you and not the government of your country. As such you may or may not have a tax obligation "back home" but that is not the business of your overseas banking partner.
You can bank online and carry a debit card for your account and use it anywhere in the world. You can transfer money in and out of your account in complete security and privacy. Your business is with your bank and their business is with you.
Offshore Trusts
If you would like to put money in trust for your grandchildren consider an offshore trust. Depending upon your tax jurisdiction there may be a substantial tax advantage in going offshore. Depending upon your home country and the offshore location you choose results will vary.
Offshore banks offering trust services in tax advantaged jurisdictions will typically have minimal taxation on trust income. The value of the trust will be allowed to grow and compound unencumbered by the level of taxes you might see "back home." When the trust money is made available to your grandchildren is typically when taxes will be taken out.
Talk to your accountant or tax lawyer about tax laws in your home country. Talk to the specialist about the advantages of offshore banking, trust accounts, and other savings vehicles in tax advantaged locations. Another option instead of a trust is an offshore foundation. Again, good planning with good council will reap the best rewards.
Many people see this as a shady operation and many myths comes alive remembering good old James Bond movies where money is transferred in a split of a second by just pressing a button where the bad guys retreat under the palm trees on some desolate island in the Caribbean ocean, for then moments later being caught by the good guy.
Tax planning and saving for the future is legal. Tax evasion is not. There is a lot in it for a lot of private and corporate individuals. It is a myth that this is only for the high net worth of clients. With the age of internet this has become available to people all around the world. And the offshore banks keeps their doors open, welcoming both you and me.
Gary Edwards
An offshore formations and banking specialist working for several companies regarding offshore structures, formation of companies, foundations, banks and financial institutions.
Working for User Bancorp Ltd, which is providing private and corporate accounts, merchant accounts, offshore companies such as Belize IBC's (International Business Company), Panama corporations and foundations, wire transfer services, managed funds/forex, credit- debit- and prepaid card issuing
Feel free to contact me by e-mail: gary.edwards@userbancorp.com
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