Nine Practical Reasons to Open a Bank Account in Belize
Contributed by Luigi Wewege At Caye International Bank
23 April, 2020
An offshore bank account can be a great addition to your estate planning. The goal is to settle on the best location for those accounts. As you compare the merits of different national banking systems, take a close look at what Belize has to offer.
Here are nine of the more attractive aspects of Belize banking that are sure to catch your eye.
1. Offshore Accounts in a Stable Setting
Economic stability is a must when you're talking about setting up offshore accounts. Ideally, you want to establish accounts that are safe from some of the issues that plague other parts of the world. That's because those accounts are intended to help you amass resources that will come in handy later in life. Why risk your financial wellness by opening accounts in a less than stable setting?
On this front, you'll find that Belize is equal to and in some ways superior to other offshore options. The economy has a solid history of holding up nicely even when things are not going that well elsewhere. Add in the fact that political setting and the culture in general lend more stability to the country and it's easy to see why accounts based here make a lot of sense.
2. Taking Advantage of Competitive Rates
Another point in favor of Belize is the competitive interest rates that you get to enjoy. The specific rates that you can command will vary somewhat. A lot depends on the amount you deposit, the type of account that you choose to open, and how often you continue to place more funds in those accounts. In any event, you can expect to receive a reasonable return on those balances.
Do take the time to compare the merits associated with a term deposit account versus a demand deposit account. The former allows you to lock in a fixed interest rate in return for leaving the funds in the account for an agreed-upon time. That's a great approach if the plan is to set aside funds that you'll use later in life.
3. Broader Options for Investments
Are you thinking of adding some international investments to your portfolio? Belize is a good place to look for new opportunities. There are options like real estate and other investment types that are a little different from those you'll find closer to home. In some cases, the potential for greater returns is quite real.
You'll find that the banking experts in Belize are transparent when it comes to providing information about investment opportunities. Don't expect anyone to hurry you into committing to a specific investment. Those involved in the banking industry in Belize want clients to be fully informed before they make any type of commitment. If you're used to high-pressure tactics at home, this aspect of the banking and investment culture will be a refreshing change.
4. No Language Barrier
With some offshore opportunities, you may feel a bit lost because of problems speaking certain languages. Here's another area where choosing to do your banking in Belize makes a lot of sense. English is one of the most common languages spoken in the country. That should come as no surprise since the country was once known as British Honduras.
There are other languages that are also spoken in the country. For example, people who speak Spanish as a first or second language will have no problems communicating. Mandarin, Maya, and Garifuna are also options. The bottom line is that language will not be a hindrance as you look to open banking or investment accounts.
5. Protecting Part of Your Assets from Domestic Legal Entanglements
Opting for financial accounts in Belize allows you to build wealth that remains safe from any legal actions at home. Even if some type of obligation were to wipe out all of your domestic accounts, the funds tucked away in your offshore accounts would still remain within your control. See it as one way of diversifying enough to avoid financial ruin.
Why is this important? Consider what could happen if you were sued and the outcome was not in your favor. There's the potential for all or at least most of your domestic assets being seized to settle the judgment. How would you go about recovering from that type of setback? If you have funds in offshore accounts, you will have resources to help you get by while moving past any such unfortunate event.
6. More Insulation from Economic Shifts
While some economic downturns affect a single or possibly a few nations, others have a global impact. It's happened before and could easily happen again for all sorts of reasons. Natural disasters, epidemics, pandemics, political collapses, and a number of other factors may bring on the downturn. If one of those issues undermines the economy at home, it pays to have funds tucked away elsewhere.
Belize has tended to fare better than many other nations during a global recession. Couple that with the general economic stability that the country enjoys and it makes sense to open accounts here rather than in a country that cannot offer this type of dual protection.
7. An Excellent Way to Set Aside Resources for Retirement
Retirement is something that everyone needs to consider closely. Unfortunately, life has a way of making it difficult to create and fund accounts that provide security in later years. In some cases, one of the major hurdles is the need to deposit large sums of money when opening those accounts. People who are more in the middle-income than higher-income category may be discouraged at what's required by domestic institutions.
The nice thing about the demand deposits and the savings accounts in Belize is that the minimum deposits needed to set up accounts is comparatively low. The same is true for many investment options. That makes it more practical for those with more modest incomes to start with lower balances and gradually add to them when and as possible.
8. Offshore Clients Enjoy Excellent Protections
In some offshore locations, the protections offered for depositors outside those countries are different from the protections offered to citizens. Simply put, your money may not be protected to the same extent. This is one of the reasons why it pays to learn all you can about the banking laws that apply in any offshore setting.
What you will find with Belize is that the laws do quite a bit to protect offshore depositors. As you learn more about the measures taken to protect your assets, it will be easy to see why this country is the right place to base your accounts. Add that to the competitive interest rates that you can earn, and your decision will be an easy one.
9. The Tax Advantages
There are also tax benefits associated with opening financial accounts in Belize. While the country's banking system will comply in full with any reporting required by your domestic revenue agency, the tax structure within the nation helps ensure your money is safe.
There's another aspect to consider. If your plan is to eventually retire in Belize, the tax structure will also work to your advantage. You'll find the laws to be fair and simple to understand. That makes the process of living in the country and contributing to the overall financial stability all the easier.
Expand Your Banking Presence
Are you ready to open your first offshore financial accounts? Give Belize a close look. You're likely to find that this is the ideal setting for expanding your assets and positioning yourself for a greater degree of financial freedom.
Contact our team at Caye International Bank and discuss any bank account type that has caught your attention. For almost two decades, we have been helping people just like you enjoy the best that offshore banking has to offer.
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