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What is an Offshore Bank? The terms “offshore bank” have been mentioned in the news media and on the internet for years. Just what does an offshore bank mean? An offshore bank is a bank located in another country from where you live. It can be an international bank like HSBC with branches in many countries. An offshore bank could also be a small bank just located in one offshore country. Why would anyone want to open an account in an offshore bank? Asset protection is one reason for opening an offshore bank account. Taking one’s assets outside of his home country and depositing them into an offshore bank account protects those funds from being seized. Seizure of domestic bank accounts can occur after losing a civil lawsuit, owing the home country income taxes, being fined by a government agency, to pay for alimony or child support, or to pay off debts. However, when funds are being held in an offshore bank account these creditors may never know the account exists. Even if they find the offshore bank account seizure of the funds could be difficult or impossible unless specific treaties exist between the two countries allowing for such seizures. Asset protection experts recommend shielding the client from direct ownership of the offshore bank account by using a legal entity like an offshore corporation or an offshore private foundation to open the offshore bank account. This will make it even more difficult for the client’s creditors to locate the offshore bank account. There are countries with laws allowing for anonymous ownership of offshore corporations and offshore private foundations adding another layer of protection for the client. Another reason for using an offshore bank is to pay less income taxes. By having an offshore legal entity to conduct business in other countries or sell products and services online and send the money to an offshore bank in a country which does not tax this type of income results in having to pay no income taxes. Choosing the best country with anonymous legal entities ownership and strong bank secrecy laws without levying income taxes on passive or active income is the best of both worlds. Asset protection with no income taxes is the best of both worlds. Since there are many no income tax jurisdictions in the world to choose from it is recommended to hire a competent asset protection firm or expert to give advice as to which country best fits the client’s needs. Such needs may simply be parking funds in an offshore bank, or conducting commerce with the profits being sent to an offshore bank. One client may be seeking to relocate to a new country and using the offshore bank as a retirement account. Another client may want to move to a tax free country in order to be involved in an active business. Yet, another client may desire to remain in his home country while using the offshore bank for its brokerage services to buy and sell commodities, precious metals, and securities where the profits and the offshore bank account interest will not be taxed. For free information about Asset Protection visit this Panama law firm's website: http://www.panama-offshore-services.com/ © COPYRIGHT 2013 Steven Rich, MBA
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