Offshore banking in today's economic scene
15 February, 2016
In today's financial world, with its many ups and downs, many continue to be attracted to offshore banks although, due to the new restrictions and rules of offshore banking many people prefer to use e-wallets accounts, like www.PAYOPM.com, in order to avoid paying oppressive tax burdens and to protect their assets.
One of the first and most asked questions regarding offshore banks is "What are offshore banks?" The word "offshore" is itself a fairly precise indicator, meaning that it is a bank outside of the boundaries of your country where you reside. Traditionally, many of these countries are so-called Third World countries which, not having the advantage of great natural resources, have turned to the financial area to build up their own economy. However, this has also changed, and many other countries are opening their doors to the allure of offshore banking, including a number of Middle Eastern countries, which many consider to be the best. Because they are not faced with the same bureaucracy as western banks, banks in this area are able to attract a higher amount of capital.
There are many points to be considered while searching for the offshore bank that fits your needs, including a solid banking system, such as Germany's; this however, must be considered carefully, as some other options, such as low or even zero tax loads are available in Europe, the Middle East, Asia, the Caribbean and Africa.
Other options, which should be factored in while considering your choices are: your nationality, how much money you intend to deposit and the type of business you carry out. Another important factor to remember is that in most cases the banks decide whether they will accept the client's application or not; they also have requirements that must be fulfilled in order to open an account.
Another important factor is maintenance expenses. In order to open an account, offshore banks require an initial deposit that will be higher than so-called "onshore" bank. The minimum initial deposit can vary anywhere from $10,000 up to 10 million dollars. Opening an account in an offshore bank is expensive, but for the fees that are paid, you will receive privacy and security.
Your citizenship is another factor that must be taken into consideration; most offshore banks will not open accounts for American citizens; this also applies to residents and citizens of Europe and Western countries. There are, however, options available for these countries: Singapore and sites in the Caribbean work with Americans and other Western citizens. Because of new restrictions and rules of offshore banking put into place by FATCA many Americans and other western clients prefer to use e-wallets accounts, like PAYOPM (www.payopm.com) to keep their accounts from being increasingly controlled. Despite these more difficult restrictions, there are over 30 offshore banks that accept accounts from American clients, for those who do wish to go that route. West European citizens will also have difficulties trying to open an account in a European tax haven like Monaco, Gibraltar, San Marino, Luxemburg and Andorra.
When requesting an account, you must state whether you are willing to be present when opening an account, since almost all banks prefer direct contact with prospective clients.
Multinational banks could be another option; it's easier to open an account in one of these, but they tend to share clients' information with governments, whereas offshore banks are resisting this tendency and are maintaining the banking secret even more jealously.
And this leads to the biggest problem with many offshore banks and trying to find the one that works best for your particular needs: the governments of many of these offshore jurisdictions have signed treaties with other countries, in order to with comply with new regulations established with The Organization for Economic Cooperation and Development regarding the exchange of tax information. It is because of these new restrictions and rules of offshore banking that many people prefer to use e-wallets accounts, like PAYOPM.
Another disadvantage is the amount of time it takes to open an account; depending on the bank, this process can take anywhere from 30 days to 6 months.
There are many advantages offered by offshore banks, however, that still continue to attract people to them, despite the tighter regulations regarding the exchange of information of single individuals. One of the most popular in recent times is Hong Kong, which offers advantages such as low interest rates, favorable tax laws for non-residents: there are no taxes on earnings, inheritance, dividends or interest deposits. There are taxes, however, applied to income generated inside Hong Kong itself. Account funds can be maintained in a large variety of currencies, including gold.
Opening an offshore bank account, although an excellent means for maintaining one's earning secure, may not be for everyone. There are other options available for those who would like to have the same advantages as an offshore bank, without the disadvantages. Faced with the new restrictions and rules of offshore banking, many people prefer to use e-wallets accounts, like PAYOPM. The PAYOPM e-wallet offers all the advantages of an offshore bank, with none of the disadvantages.
Find out more about the PAYOPM offshore e-wallet at www.payopm.com. PAYOPM's experts can also help you find the offshore bank right for you, if you decide to go with an offshore bank.
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