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Investigating No Bank Account

Having an offshore account is becoming ever more common these days. There are many reasons why one may decide to open an offshore banking account, however there are three main reasons why an offshore account is a must for many people. These three reasons are protection, profit and privacy. If any of these reasons are important to you when it is a question of banking, then opening an offshore bank account is definitely an option you should pursue.

Contrary to popular belief, having an offshore bank account is neither illegal nor immoral. Offshore banking often seems to conjure images of crooks and criminals trying to hide money from the government. The fact of the problem is, having an offshore account offers you a level of protection that you cannot find with any other kind of account. Those who're highly concerned about the protection of their assets and finances do quite well with offshore banking. Offshore accounts have a higher level of protection from both business and government entities. You're guaranteed that both your personal and financial information is kept secure. Offshore banks won't release your information to anyone, and many offshore jurisdictions offer heavy fines and lengthy jail terms for those that would disclose your information to others. These greatly aids in deterring those who've access to your account from releasing it. For more about no bank account: click here for the rest of the article.

Profit is the second reason why many people choose to open an offshore account. In many places, there are a variety of taxes that needs to be paid when banking. This isn't so with an offshore account. Standard banks not only charge a bank account debt tax and financial institution duty tax, but also tax any interest you may earn on your account. You don't have to be afraid of these taxes with offshore banking. You eliminate the coefficient of having to pay these taxes to your banking institution. These in itself is a means to save money and profit. However, when you also factor in that you'll no longer required to pay tax on the interest you accrue, and that banking in an offshore account found in a tax neutral jurisdiction allows you to compound your earnings, you quickly realize that having an offshore account is extremely profitable and beneficial.

More Thoughts About No Bank Account

Privacy is the final reason why most people feel having an offshore account is a must. The privacy that an offshore bank account offers is consistent with the level of protection your assets receive. Your personal and financial information can be very easily accessed by almost anyone with standard onshore banks. An individual could easily have access to this information and do quite a little bit of damage to your finances with minimal information. Additionally, by law onshore banks must disclose your information to the government should they request the information. Offshore banks offer a much higher level of privacy to their customers. Most offshore accounts are found in countries and jurisdictions that don't have such laws which they are required to comply with. Many offshore banks also offer what is referred to as anonymous banking. This allows you to provide minimal personal information to the facility, which helps to increase the level of privacy and protection you have. http://mvenentico.jimdo.com/2014/11/27/life-is-different-when-you-have-bad-credit/, for more info..

Some people may not want their name associated with an offshore bank account. In order to get a private offshore bank account it is essential to find a country with laws allowing for bank secrecy coupled with laws allowing anonymous ownership of their legal entities. Bank secrecy laws basically make it a crime for any bank employee to disclose any information about an account holder. While having your own name as the holder of an offshore bank account in a given country with bank secrecy laws affords some protection it may not be sufficient to guarantee privacy. That is why asset protection experts advise using a country with anonymous entity ownership laws. A legal entity can be a partnership or a private foundation. Forming an offshore corporation, for instance, where the true owner's identity is hidden can achieve this by hiring a law firm's staff to become the corporation's board of trustees and officers. Trusted friends and family members could also be used in order to serve those roles. A few countries have laws allowing for 'bearer' corporate share certificates which only have the word 'bearer' instead of someone's name. That means whomever posses the certificate is its owner. There are no records or filings showing the shareholders names. Once the offshore corporation or private foundation is created it opens the offshore bank account in its name. Thus total anonymity of the offshore bank account is achieved.

An offshore bank account not only earns tax free interest but can also serve to make investments or loans for further profits which can be tax free too. The larger international banks with branches located in countries with bank secrecy laws and anonymous ownership of their legal entities laws offer investment services like an offshore brokerage account. A brokerage account offers a platform like a stock brokerage does. The customer can engage in buying and selling corporate stocks, precious metals, international currencies, government bonds, commodities, and mutual funds.

The profits derived from an offshore brokerage account can be income tax free with the good country chosen to create the offshore legal entity which owns the offshore bank account. Very few countries have no income tax laws and setting up an offshore legal entity and maintaining an offshore bank account in one of these states can be very expensive and requires a large minimum offshore bank account balance like $100, 000 USD. There are other countries with similar anonymity laws which won't impose income taxes on their offshore bank accounts or profits from their offshore brokerage accounts as long as the profits are earned out of the country. These are known as 'territorial income tax' countries where only income earned within their territory is taxed.

There are of course various other reasons why one may choose to open an offshore account. These however are the top three reasons why most people choose to do at least part, if not all, of their banking in an offshore account. If protection, privacy, and profit of your assets is important to you, having an offshore account is the only means to go.

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