There is a lot of misunderstanding around offshore banking after the Panama leaks. Many individuals believe it to be illegal to have an offshore account which is not true.
Offshore banks is a term which is used to denote banks situated outside one's country which offer banking and other financial services. These accounts are popular as they do not attract tax deduction as is applicable otherwise. Such accounts are funded usually through international wire transfers.
Also read: What is Offshore Banking?
Having account may not necessarily mean you are rich or you have plans to escape tax.
Here are 9 reasons when you should have an offshore account:
1) If you are staying in other country and where you are not interested in holding any currency or asset. In such cases you can consider having an offshore account.
2) High net worth individual who are interested in investment which are not available in the home country.
3) If there is a tax benefit for holding assets or investments in other than home country.
4) Individuals who are juggling between two countries with different countries can hold offshore account for easy access to money.
5) Offshore accounts will allow you save in different currencies
6) Investing in offshore account saves you from any political risk.
7) Offshore bank accounts are popular as they pay high interest on the deposits.
8) Unlike other accounts, where pulling bank information is not at all difficult, they maintain secrecy and are easily not disclosed.
9) Holding another currency is one of the best ways to diversify investments.
Opening an account will be very much similar to opening a normal bank account which includes personal information, such as your name, date of birth, address, citizenship, and occupation. Documents related to your income, occupation, PAN card, passport copy, the source of income.
The bank may also seek additional information with the aim to discourage money laundering and other illegal activities.
There are many popular banks which have an offshore bank. Selecting an offshore account will depend on the bank and type of account you are interested in.