For decades, international corporations have benefited from offshore banking as a way to protect their privacy, diversify their assets, enjoy greater security and enjoy legal tax breaks. In recent years, however, private individuals are also beginning to see the appeal of offshore banking. Discover more about five of the key advantages of private offshore banking below.
1. Protect Assets For the Future
One of the key reasons that individuals opt for offshore bank accounts is the opportunity to protect and preserve their assets. This might simply be a security measure, but it might also be a way to better care for your loved ones in the future. Offshore estate planning can include insurance wrappers, trusts for children and grandchildren or even charitable donations that might be included in your will.
2. Enjoy Personal Tax Benefits
A major advantage of banking overseas is the potential to pay fewer legal taxes. Many countries, such as Belize, offer legal tax breaks and incentives for foreign investors. These reductions in taxation can add up quickly, and they may help you to profit more from investments and spend less simply paying off taxes.
3. Diversify Your Holdings
A common adage says not to place all of your eggs in one basket, and that rule applies to wealth and assets too. Rather than placing all of your holdings in one domestic bank account, think about how you can geographically diversify your wealth in a safe way. An offshore account could be the simplest answer, and it might provide a sort of safety net should domestic assets be troubled or jeopardized in any way.
4. Explore Alternative Investments
Offshore banking can include basics like checking accounts and savings accounts, but it can also open up the door to alternative investments. This might be a great option for those who want to increase their profit potential, or for those who are willing to take on a greater risk in exchange for greater rewards. Alternative investments in offshore locations can include purchasing foreign currency, overseas real estate or stocks from an international exchange.
5. Prepare For Retirement
If you are getting ready for retirement, or even if it is just something you are preparing for in the future, offshore banking can be helpful. Banking overseas might allow you to purchase foreign property for your full-time residence, or you might simply want to diversify your assets and create a more effective life insurance policy.
Corporations have long utilized the benefits of offshore banking, but private banking also has its perks. Click here to learn more about you can benefit from a private offshore bank account.