What is Offshore Banking?
It is merely banking services in the country/state/jurisdiction other than the one, where client (offshore banking services user) resides.
What are the benefits of such service?
Offshore banking normally provides wide range of tax benefits. For instance, interest and dividends are paid without income tax deduction. Additional benefits include high degree of bank secrecy, investment security and convenient access to the assets.
Do I have to travel to such jurisdiction to open, close or simply use the account?
No. You do not have to actually visit the tax haven. You can do this through Internet, e-mail, mail or telephone.
How can I get an offshore banking account?
There are numerous companies/sites that provide such service. You can find them through search engines. However we advise you to check out the company/site first. Visit online forums and ask whether anyone has ever used services of the company/site you plan to use.
Is it legal owning such an account?
Yes. It is legal. Offshore banking has been legally used for many years by physical and legal persons. Most countries do not forbid such accounts to encourage international trade and investment.
How convenient are these accounts?
Offshore banking accounts are very convenient, as convenient as onshore banking accounts. It is possible to access them through fax, Internet, telephone and other means of communication. Offshore banks often provide credit cards that allow withdrawing money through ATMs. Besides it is possible to transfer money from and to offshore account without any restrictions.
Is the income generated from offshore sources taxed by income tax?
Some countries require their citizens to report all the income generated from all sources and tax them. The answer to this question varies from country to country.
If my income is taxed, then why should I use offshore banking services?
There are many other benefits that offshore jurisdictions offer. They include asset protection, estate planning, bank secrecy, better returns and confidentiality.
I am interested in privacy, confidentiality and secrecy. Is it included?
Offshore jurisdictions offer high levels of banking secrecy and confidentiality; however they are unable to guarantee absolute confidentiality. Banks carry a requirement to report all suspicious transactions that in theory could be a result of criminal conduct. Foreign countries may get the information if there is strong suspicion of a serious crime.
Can I get debit/credit card linked to my offshore account?
Yes. You can get a credit/debit card and have a full access to the account through ATM.
What is minimum balance to set up offshore banking account?
It depends on types of deposit, country where it is opened and the offshore bank. Generally it is $1,000.
What currencies are available?
All the major currencies are available.
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Is it possible for me to access my offshore account while I’m in Africa, specifically Ghana or Nigeria? If yes, how would I go about it?