Offshore Bank Accounts - 6 Myths About Offshore Banking You Might Have Believed
Many of the people I talk to think they don't need an offshore bank account.
They think that offshore banking is just for criminals and tax evaders.
Or, maybe, they think that an offshore bank account is just for the rich.
Much of this thinking is because of a lack of knowledge.
And that is because there are a number of different myths surrounding offshore accounts.
This article will dispel those myths, once and for all.
And, it may help you understand, that if you are the type of person who wants to take responsibility for their own financial future, an off shore bank may be just what you are looking for.
Myth 1 - Offshore Banks are Located in Unstable Countries As soon as you mention the term offshore account to someone, they immediately think of some politically risky country that they can't trust.
But an off shore bank account means any bank account that is not in your home jurisdiction.
So technically, if off shore bank accounts were only in unstable countries, every country would be have to be considered unstable.
Myth 2 - Offshore Bank Accounts are Illegal Offshore banking is legal, and it has to remain legal.
In a global economy, money has to move between various countries to facilitate trade.
So companies and individuals need bank accounts in different jurisdictions, and therefore are therefore offshore.
Myth 3 - Offshore Banking is only for the Rich Companies and rich individuals have been using offshore accounts for many years.
And up until recently, it was a secret they kept to themselves.
But, that doesn't mean that they are only for the rich.
Offshore accounts can often be setup for under a thousand dollars, including an offshore corporation to hold the account.
In fact, personal accounts can often be setup for free, with just a small deposit of a couple hundred dollars.
Myth 4 - Offshore Banks are Unsafe This depends on the offshore destination you choose.
Since a lot of the benefits of offshore banking are derived from banking in low tax countries, there is a certain element of truth to this.
But, that's mainly because these banks are not FDIC insured like banks in the US or some other countries.
That means, if the bank fails, you could lose your deposit.
But, doing proper research will help keep you safe.
There are many large offshore banks that are worth billions of dollars.
They are not likely to fail.
You just have to diversify and evaluate your risk.
Myth 5 - Offshore Accounts are 100% Private This is partially true.
If the country itself dictates bank privacy.
But, only if you follow all of the laws of the country where your bank account sits.
Countries like Panama and Belize are tax havens that do protect your privacy.
Other countries will happily share your personal information with almost anyone who asks.
However, if you break the laws of the country where the bank account is held, that privacy will dissolve.
Banks will release your "private" records if you are involved in illegal activities such as drug crimes, murder and fraud, no matter where those crimes occur.
Also in some "private" countries, that veil of privacy will be lifted in certain types of lawsuits.
Myth 6 - Privacy is the Only Reason for Offshore Banking It's true, that much of the benefits of banking offshore come from privacy.
But there are many other reasons to consider it.
Among those reasons are:
But, as you can see, much of this is based on misinformation.
It is your job to learn the right information, in order to make a decision for yourself.
These accounts have been used for years to help companies and individuals maintain privacy, protect their financial lives, reduce taxes and build their wealth.
Because there are so many myths, many people who could benefit from an offshore account, don't end up utilizing them.
But, if you believe that your financial future and your family's financial future is your responsibility, offshore bank accounts and offshore banking in general are more accessible than you might have thought.
They think that offshore banking is just for criminals and tax evaders.
Or, maybe, they think that an offshore bank account is just for the rich.
Much of this thinking is because of a lack of knowledge.
And that is because there are a number of different myths surrounding offshore accounts.
This article will dispel those myths, once and for all.
And, it may help you understand, that if you are the type of person who wants to take responsibility for their own financial future, an off shore bank may be just what you are looking for.
Myth 1 - Offshore Banks are Located in Unstable Countries As soon as you mention the term offshore account to someone, they immediately think of some politically risky country that they can't trust.
But an off shore bank account means any bank account that is not in your home jurisdiction.
So technically, if off shore bank accounts were only in unstable countries, every country would be have to be considered unstable.
Myth 2 - Offshore Bank Accounts are Illegal Offshore banking is legal, and it has to remain legal.
In a global economy, money has to move between various countries to facilitate trade.
So companies and individuals need bank accounts in different jurisdictions, and therefore are therefore offshore.
Myth 3 - Offshore Banking is only for the Rich Companies and rich individuals have been using offshore accounts for many years.
And up until recently, it was a secret they kept to themselves.
But, that doesn't mean that they are only for the rich.
Offshore accounts can often be setup for under a thousand dollars, including an offshore corporation to hold the account.
In fact, personal accounts can often be setup for free, with just a small deposit of a couple hundred dollars.
Myth 4 - Offshore Banks are Unsafe This depends on the offshore destination you choose.
Since a lot of the benefits of offshore banking are derived from banking in low tax countries, there is a certain element of truth to this.
But, that's mainly because these banks are not FDIC insured like banks in the US or some other countries.
That means, if the bank fails, you could lose your deposit.
But, doing proper research will help keep you safe.
There are many large offshore banks that are worth billions of dollars.
They are not likely to fail.
You just have to diversify and evaluate your risk.
Myth 5 - Offshore Accounts are 100% Private This is partially true.
If the country itself dictates bank privacy.
But, only if you follow all of the laws of the country where your bank account sits.
Countries like Panama and Belize are tax havens that do protect your privacy.
Other countries will happily share your personal information with almost anyone who asks.
However, if you break the laws of the country where the bank account is held, that privacy will dissolve.
Banks will release your "private" records if you are involved in illegal activities such as drug crimes, murder and fraud, no matter where those crimes occur.
Also in some "private" countries, that veil of privacy will be lifted in certain types of lawsuits.
Myth 6 - Privacy is the Only Reason for Offshore Banking It's true, that much of the benefits of banking offshore come from privacy.
But there are many other reasons to consider it.
Among those reasons are:
- Better range of investment opportunities
- Better banking features and benefits (interest rates or other benefits)
- Access to your cash while traveling abroad
- Diversified currencies
But, as you can see, much of this is based on misinformation.
It is your job to learn the right information, in order to make a decision for yourself.
These accounts have been used for years to help companies and individuals maintain privacy, protect their financial lives, reduce taxes and build their wealth.
Because there are so many myths, many people who could benefit from an offshore account, don't end up utilizing them.
But, if you believe that your financial future and your family's financial future is your responsibility, offshore bank accounts and offshore banking in general are more accessible than you might have thought.
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