Offshore banking easily explained

Firstly, offshore bank accounts are not secret banking facilities, only available to a select few by an equally select number of financial institutions. Actually, an offshore bank is any account that is not situated in the same country as the account holder. Most of the major UK banks offer international banking, which will be classed as an offshore bank account. Having offshore banking explained will help you understand the many benefits relating to holding an offshore bank account.

These days you can open an offshore banking facility with as little as £3,000. If you choose an offshore bank that does not have a sister company in the United Kingdom you can apply and open your account without visiting the country the bank is situated in. The application is done completely by mail, phone and email, with the offshore bank checking your identity and using a third party financial institution in your own country if necessary. Once your account is set up, you have to obey the banking laws linked with the country where the bank is located. Before deciding on an offshore account, it is recommended you speak to a financial and legal advisor to have your offshore banking obligations explained to you fully.

You will be entitled to numerous tax benefits once you have opened an offshore account. This includes reduced tax on your savings interest as well as paying zero tax on deposits. However, the institution with whom you bank will still have to comply with your own country's tax laws if authorities from this country decided to investigate your account. Certain privacy laws do apply, and any assets you have will be better protected in an offshore account than a UK one. However, this does not make your account above the law and if you were ever suspected of criminal activity, your offshore bank would have to assist the relevant authorities.

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