About Offshore Banking
Offshore banking can be somewhat of an enigma for people who think foreign accounts are for the seriously rich. Debts.org discusses the merits of offshore banking ? and find out who uses them, why they use them and where.
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| About Offshore Banking |
By:
Marcus Doherty |
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Offshore banking can be somewhat of an enigma for people who think foreign accounts are for the seriously rich. Debts.org discusses the merits of offshore banking ? and find out who uses them, why they use them and where.
What is offshore banking?
Having an account in a country other than where you normally live is known as offshore banking. Various sectors of the population use offshore banking facilities, including individuals, corporations and State departments.
Why would I have an offshore account?
With the financial climate at home being a little unpredictable, you may prefer to bank in a country that has a steady economy. Or perhaps you regularly travel abroad and would like to have the convenience of a bank account in the country you frequently visit. The majority of people, however, use offshore accounts to manage money in the country where they own a property ? such as a holiday home.
Having an offshore bank account can make money transfers more convenient, especially when dealing with a number of currencies. Or you may want to reap the rewards of high interest rates ? foreign accounts often offer higher rates than many of the UK?s high street banks. Finally, you may be eligible for offshore tax deductions based on your personal circumstances but this depends largely on the account, the country and your eligibility.
For more information on the benefits of banking offshore, visit http://www.debts.org/accounts/offshore_banking/
Do I have to declare savings to the Inland Revenue?
Unfortunately, yes. If you are a UK resident it is unlawful for you to enjoy the benefits of an offshore savings account and not declare earnings to the good people at HM Revenue and Customs. If on the other hand you are an expatriate living abroad, you are not obliged to declare your savings to the UK government.
What is a tax haven?
First of all, not all countries with tax benefits are called ?tax havens?. In reality many countries just offer account holders better deals on certain kinds of tax, such as inheritance tax. Whereas a ?tax haven? is a country which has low to zero tax levels.
Which countries offer offshore tax benefits?
Depending on your circumstances there are many countries that offer taxation incentives. The following nations, however, are generally considered to be the main players:
Bahamas
Bermuda
British Virgin Islands
Cayman Islands
Gibraltar
Jersey
Panama
For more information on various types of bank accounts visit http://www.debts.org/accounts
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