Witnessing that everything can fall apart during Covid-19 pandemic, our beliefs in countries and current authorities took a knock. It is irreversible now! People have seen how fragile our holdings are. Maybe it was for the best to be an accelerator to convert our financial world into something limitless. The loss of trust in the system and fear of being custodian of savings into one particular spot triggered a Renaissance for offshore bank accounts and the service providing them. According to the latest research, overseas accounts have boomed 60% worldwide and the number of people who want to have a Plan B in this unstable and wild world increases day by day.
Besides, there are constant changes in politics and we are facing conflicts all around the world. Everything can change in an instant. There are many different international banking tools such as virtual or online banks. But if you want to go beyond you can try offshore banking. Offshore accounts are reliable banking services that protect you against unpleasant surprises.
In the past there were some urban legends about offshore accounts that were believed to be only for those individuals who need to manage their generational wealth or individuals who have high net worth. Another misconception about these offshore accounts is that they are located only in far away tropical or mystical heavens like the Bahamas or Hongkong. These were maybe true back in the 80s. However today offshore banking services are available for everyone who can benefit from it. Let’s understand what exactly an offshore account is and how you can benefit from them.
What is an offshore account?
Like we said in the past offshore accounts were often to be used by big companies and high net worth individuals. However today offshore accounts are more accessible to all types of individuals from all around the world.
In a nutshell offshore account is the usage of banking services in a foreign jurisdiction except the country where one resides is considered as engaging in offshore banking. For instance, if you are a Greek citizen and you create a bank account in Austria, this makes you an offshore account holder. Generally offshore nations are island countries like the Cayman Islands, Bermuda, the Channel Islands, and the Bahamas. Also there are specific locations such as Switzerland, Ireland, and Belize qualified as popular offshore centres. Offshore accounts are not only designed to protect your money but also they offer very high investment opportunities. We would like to remind you that an online or virtual bank account is not the same thing as an offshore account. To understand the difference between those accounts let’s see how an offshore account works?
Why should I prefer offshore banking?
Let’s break down a list to see why and when you should prefer to have an offshore account.
1- Your own country!
In 2013, Cypriot expats were suddenly blocked from cashing out their own money out of their accounts and out of the country. How about capital controls Greece and Iceland in 2016? Retirement savings nationalisations in Poland, Hungary, Portugal, and Argentina? You have forgotten that Qatar was imposed an embargo by Saudi Arabia, The UAE, Bahrain and Egypt earlier this year? Citizens and investors of these countries had really hard times. There is no country which is totally safe nowadays. Thus, if you think your country is totally safe, think again! Your overseas account is an insurance policy for your financial future.
You can easily access your funds without any restrictions whenever you need. Think about your country’s current situation and decide if you really want to risk all your money? If the answer is no then you should start considering opening an offshore account.
2- Expanding your business to abroad
Offshore accounts are not only for big corporations, in recent years many startups and SMEs started to benefit from offshore accounts. Offshore accounts offer big flexibility when it comes to managing your money across borders.
If a company is operating in multiple locations, offshore accounts enable and facilitate business transactions with less costs and fees. Moreover they might offer local payment gates which can facilitate all business transactions. If your business is operating on the same location where your offshore account is, this might be a good option also to develop your business relationship with local business. You can get much better loan offers with less interest rate. You can capitalise your business with less hustle and step into
3- Get higher interest rates! Save more!
Many countries where offshore accounts are offered, have greater interest rates and other advantageous offers for reasonable deposits. Plus, you can find a wide selection of funds and investments which may not be available either in your residential country.
Please note that offshore accounts are not totally free. Even if they are more beneficial in the long term there are still opening costs, monthly fees and other possible expenditures. However when we think about the hustle of international transactions, those fees are worth paying. We still recommend you to check the list of countries where you can open an offshore account and benefit from low interest and exchange rates.
4- Protect your assets!
If you are facing a government agency or a frivolous lawsuit, an offshore account gives you resources you can rely on. It will also protect you from overzealous government agencies to block your assets. Is it fluke that The Legal Resource Network interfiles millions of lawsuits in the United States every year.
Some jurisdictions may offer better financial privacy as long as you ensure that your activities are legal and comply with regulatory obligations.
5-Less tax!
Offshore bank accounts serve expat tax advantages. They can vary from keeping your money outside of the tax jurisdiction to protecting it from taxes in the country in which you are currently residing.
For instance being an expat you can benefit from tax advantages to using an offshore bank account. Some account holders who bank in countries like the Isle of Man and Jersey, for example, can choose to receive interest on their savings tax free and interest is credited gross to their account in other words there is no income tax deduction. This might bring you a huge advantage in the long term. If you live in a country where the government can keep your assets or freeze your bank accounts after you pass away, offshore banks solve this problem.
Many offshore accounts offer estate plans with offshore accounts in order to prevent government confiscation of your wealth or assets.
6- Be served!
According to many offshore bank account policies, you will be given a highly personalised service and comprehensive online banking 24/7/365. Moreover, a private manager may be assigned for you, so you will have a contact whenever you need any kind of assistance. Therefore, you can experience top-quality customer service and you will feel secure. Also privacy is highly valued in offshore banking services.
Your personal manager may also guide you through much more personalised investing plans and opportunities. Offshore customer services are designed to grow your personal wealth, business or portfolio.
7- Exchange with the best rates!
Thanks to the multi-currency accounts, transferring money between accounts will be quick and out of charge. Multiple offshore banks serve competitive foreign exchange rates compared to regular banks or other exchange services.
It is possible to keep a diverse currency portfolio within your offshore accounts. In other words, you can hold multiple currencies in your accounts and process transactions in various currencies.
We know that currencies are not stable in most countries. If you are looking for a shield against the impact of currency fluctuations the offshore accounts are a very good solution. You can easily insulate your account from the effects of currency volatility.
8- More Privacy
In countries where offshore banking is offered the regulations are designed to prioritise and maintain the anonymity of account holders, ensuring the secure and undisclosed nature of account information.
For instance Belize is one of these well-known jurisdictions with a high level of privacy for offshore bank accounts.
9- International investment opportunities
Another important advantage of offshore banking is there is very small government intervention. In other words offshore account holders benefit from greater access to a wide range of investment and fund opportunities both locally or internationally.
We know that there are various regulations that limit the investment options available to residents in their home countries. However, offshore accounts offer a high level of flexibility and enable entrepreneurs and investors to take steps for bigger investments and multitude of possibilities to access international markets and diversify their investment portfolios.
With this flexibility it is possible to explore and capitalise on investment opportunities beyond the confines of domestic regulatory constraints.
For individuals, let’s say you want to buy a property abroad. Offshore accounts will be very beneficial for you to avoid extra transaction costs. Or if you already have properties abroad, again an offshore account might be very beneficial on your transaction fees when it comes to paying any tax or other type of expenditure.
10- Have access to medical care abroad!
You are not satisfied with your country’s health system? Why not apply for health insurance to your offshore bank? Furthermore, in a scenario that you will need an urgent operation, it could be challenging or totally impossible to pay for the medical care you need in capital controls or blockades. Offshore accounts present multiple international health care plans that might be very beneficial to your pocket.
11- Personal Transactions
Like we mentioned before, offshore accounts not only benefit business activities or large wealth management. If you have family members abroad who you support financially, for example, for a child’s school fees or you take care of your elderly parents’ living expenses then offshore banking is beneficial for you.
In the long term not only will you save your money and time but also you will keep your peace of mind.
Which country should I choose for my offshore account?
Please note that some countries and regions can have more advantages to have an offshore account. Countries such as Singapore, Belize, Cayman Islands and Switzerland provide favourable financial benefits including strong banking practices and regulations.
Therefore, it really matters which country you choose to open your account. Switzerland and Singapore are widely known with their profitable and wide offshore investment selection whereas Belize enables its customers to make accounts online and deposit a low threshold.
Is it legal to have an offshore bank account?
Absolutely! Forget what you may have heard so far! Unlike general misconception, offshore banking is completely legal. It is your right to open a bank account in other countries and have peace of mind. As long as your financial activities are legal and comply with local regulatories there is nothing illegal about having an offshore account.
If you value your financial freedom and if you want to have a peace of mind when it comes to your finances, offshore accounts might be very beneficial for you. At the end of the day you won’t depend on any countries which will set you free from any government control.
In recent years, it is becoming more difficult to open a foreign bank account. And we don’t know if in the near future it will even be possible. Even if you are not going to use offshore accounts immediately, it is always good to act fast and open an account.
In reality there is no difference between an offshore account and a Jeton account. When you consider that Jeton currently operates more than 190 countries all around the world and provide the same care and attention to all customers. Most of these benefits are also valid for Jeton account holders. Plus, Jeton deposits and withdrawals are much more convenient according to an offshore account. Less paperwork, low transaction fees and costs are other advantages to consider. Why not prefer a reliable payment provider over an offshore account? No reason! We are just a few clicks away!
