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What is Offshore Banking? Do You Need an Offshore Bank Account?


After reading the several pieces on black money stashed in offshore banks you most certainly would want to know more on what an Offshore Bank is?


What is Offshore Banking?  Do You Need an Offshore Bank Account?
People are increasingly searching on offshore banks ever since these banks came into prominence after reports that there was a lot of black money or the so called unaccounted money from India stashed abroad. Our concern at the moment is not the black money though. We are here to understand what an Offshore Bank Account Is?

Why individuals need an offshore bank account?

At times political instability and internal strife may make it necessary to have an account in places that are more stable to protect your hard earned money. At such times people look at money to place in banks abroad and over the years, places like Switzerland have become an important destination. Wealthy individuals have over the years placed a lot of money there and various other places.

The other criteria is also to place money in tax havens, which provide tax benefits.

Sometimes it is because you are working abroad...

Sometimes, you need an offshore bank account, because you are working abroad and need to manage your loans, rent payable and expenses for your daily living. If you are working in a particular place, you cannot think of not opening a bank account.

What are the advantages of an offshore account?

You get various benefits of opening an offshore account. One of them is the ability to remit money easily to your home country.

Secondly, many multinational banks can facilitate expert advise in investment banking to make most of your investments.

Many offshore banks in select locations offer great amount of tax efficiency. This of course would depend on the local laws and guidelines from time to time. You must seek professional advise from time to time before you open an offshore bank account.

Read more about: black money
Story first published: Monday, November 10, 2014, 13:34 [IST]
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