Offshore banking is becoming increasingly popular as more
people recognize exactly how they could benefit from an
offshore bank account and because the set up process is
straightforward. If you've ever wondered whether you could
benefit from an offshore bank account, or you're
considering opening an account but you're not sure which
one to go for, this guide has been written with you in
mind. Generally speaking anyone is free to open an
offshore bank account. In fact, offshore banking has been
widely used for many years by both individuals and
organizations worldwide. Specifically an offshore bank
account can also be of benefit to some expatriates residing
in low or no tax countries as any interest earned on
offshore bank deposits is paid without the deduction of
taxation.
What is Offshore Banking?
Simply defined, an offshore bank account is an account held
in a bank that is located outside your country of residence.
Asset Protection Structures
If you're going to go out now to get your offshore asset
protection started, consider the best offshore banking
structure: The foundation/corporation. A foundation is an
offshore asset protection tool that can be used in the form
of a trust. A foundation can hold all your assets and have
a bank account, but a foundation can not conduct business.
When a foundation owns a corporation, which owns a bank
account, this is the only powerful privacy protection
offshore structure you will ever need. So if you have your
offshore corporation within a foundation, you can conduct
your business through the offshore account and plan your
income taxes accordingly.
Panama has a number of unique attributes that make this a
great asset protection jurisdiction for corporations,
foundations, banking and stock brokerage accounts. It is
also known as one of the world's greatest haven for keeping
and securing the cash assets of corporations, businessmen
and individuals.
Tax Considerations
Most countries have no restrictions on where your business
interests, investments or bank accounts are located; it is
simply your responsibility to report any income you earn to
the appropriate tax authority. You will need to establish
a suitable structure in a tax friendly country to gain
access to some of the better opportunities available, which
is reason enough to go offshore for some even ignoring the
tax benefits. Any business that is conducted outside of
Panama is not taxable through Panamanian income tax.
Offshore Banks
Virtually all offshore banks want to receive some form of
evidence of the account signatories' identity. Many
offshore banks, but not all, request that letters of
reference from another bank is provided by account
signatories. Some offshore banks go even further: they
demand that a bank reference each be given by all directors
and shareholders of the company. Sometimes an introduction
by a party known to the offshore bank (such as an existing
customer) is accepted instead of a reference. A fair
number of offshore banks still happily open company
accounts without any references at all. Some offshore
banks provide their own resolutions for the directors to
sign.
Internet Banking Security Concerns
You can shield your internet movements using an anonymising
service. Privacy, on the internet, is created by
technological means. In fact, the internet has become the
global, no barriers, free market.
Privacy
Most (maybe all) traditional jurisdictions are no longer
suitable for asset protection, privacy and confidentiality.
When a foundation owns a corporation, which owns a bank
account, this is the only powerful privacy protection
offshore structure you will ever need.
Jurisdiction
Usually such an account is located in a low tax
jurisdiction and offers certain financial and/or legal
benefits to the holder of the account. If you believe that
an offshore bank account structure could benefit you, the
next step is selecting the right bank, the right
jurisdiction and of course the right account type. There
are jurisdictions where banks are under legal obligations
to seek references, and there are banks that request
references despite any legal obligation to do so. Policies
vary greatly across offshore banks and jurisdictions, so
make a choice that is acceptable to you.
Belize
Offshore banks in Belize provide their customers with
various services including internet and international
banking services. You don't have to worry about
confidentiality though; Belize banks will strongly protect
any information you provide. The government has created
banks secrecy laws which provides harsh penalties for
anyone who would violate the secrecy provisions, except
when a client is under a criminal investigation in Belize.
Panama
Panama has a number of unique attributes that make this a
great asset protection jurisdiction for corporations,
foundations, banking and stock brokerage accounts. Any
business that is conducted outside of Panama is not taxable
through Panamanian income tax. Panama is the most secure
banking jurisdiction today, because Panama backs up its
strong bank secrecy laws with real life enforcement. Other
jurisdictions like Belize (mentioned above) have been known
to be lax in their enforcement. Its one thing to have
strong banking secrecy laws and its quite another to
enforce them.
As a general guide it is often more discrete to establish
your offshore structure in a location far from your
residential jurisdiction. Panama has a number of unique
attributes that make this a great asset protection
jurisdiction for corporations, foundations, banking and
stock brokerage accounts. Some call Panama the Switzerland
of Latin America but this is not fair, Panama is far better
than Switzerland and any other jurisdiction. With regard
to reliability and stability make sure to investigate the
laws and regulations for each jurisdiction you are
investigating. Stable governments help to keep investor
trust which in turn further adds to the credibility of the
banks in that jurisdiction. Some offshore jurisdictions,
such as Panama, have rock solid privacy laws governing
banking while others such as Switzerland no longer protect
their clients in the same fashion as in the past.
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To learn more about other Panama Offshore Bank Account
considerations or Panama Offshore Banking issues, visit
Panama Offshore Legal at
http://www.offshorelegal.org/offshore-banking/swiss-switzerl
and-offshore-banking/offshore-bank-account-tips.html
