Offshore Banking - Diamond Trust Credit Union

Offshore Banking

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Benefits of Offshore Banking

The purposes to open offshore bank account may include tax liability minimization, asset protection, estate planning, confidentiality, better returns, and the chance to exploit active business interests offshore from a zero tax jurisdiction.

Large part of the companies establish accounts with international and offshore banks rather than domestic banks because of the following characterics:

  • * Tax efficiency: in most offshore jurisdictions tax benefits, including interest on offshore accounts and investments, are paid without the deduction of tax. Offshore banks and private companies are not liable to income tax, also considering capital gains tax and stamp duties on property as exempt. There is no need to visit the bank to open an offshore account.
  • * Confidentiality: most offshore banks provide high level of confidentiality, security and convenience. All personal data and the details of your banking, including the account balance, are protected by modern legislation. The amount on an offshore bank account is not liable to inheritance tax.
  • * Access to special investment opportunities: one of offshore banking benefits is easy global access to deposits, at least in terms of regulation. Most jurisdictions offer less restrictive legal regulation for offshore accounts, compared to the accounts opened in local banks.
  • * No foreign exchange control: it is possible to conduct business in the country in which you have your bank account with the local currency.
  • * Offshore banking also provides protection against local political or financial instability because offshore bank accounts do not become subject to local litigation.
  • * Global investment and business prospectives, familiarity with offshore and international business. Banking operations can be made from any place of the world, via Internet, e-mail, post or telephone.

Because of the costs of establishing and maintaining offshore accounts, offshore private banking is usually more accessible to wealthy persons. However, simple savings accounts can be opened and maintained by anyone for fees equivalent to the banks located onshore.