You've probably heard about people who keep their money offshore. Most likely you assume they're all wealthy businessmen; millionaires, who have so much money they somehow 'qualify' to move it out of the country, right? Wrong! Offshore banking can be a benefit for anybody regardless of income.
There are certain components of offshore banking that you may not have thought of, or perhaps you just need a simple explanation of what they are. Here are the basics you need to know to get started:
- Offshore bank accounts ? in order to establish a bank account offshore and still have complete confidentiality and privacy, you need to hold the bank account under an IBC (International Business Corporation). There are a number of IBC jurisdictions that allow complete privacy in a tax-free environment. We deal exclusively with these jurisdictions.
- IBC ? as explained above, IBC stands for International Business Corporation and is similar to an onshore corporate. However, the company is established in a completely tax-free jurisdiction with a very high level of confidentiality and asset protection. For extra security, it is common to have an offshore IBC company in a separate jurisdiction from your offshore bank account. This ensures that any possible future claims against your offshore company would have to be brought to two separate courts in jurisdictions with some of the toughest asset protection laws in the world.
- Offshore Jurisdictions ? A country that has very strict privacy laws that protect offshore bank accounts and offshore companies. There are several countries that offer this type of protection including Switzerland, Panama, Belize and the BVI.
- Offshore Trusts ? A Trust allows you to transfer ownership of your assets in a safe and controlled manner while still maintaining ultimate control. The shares of your IBC can be held by a Trust, giving you yet one more layer of protection. Why would you need a Trust? In the US, you stand a one in four chance of being sued if your net wealth exceeds only 100,000 dollars. Offshore Trusts will allow you the security of asset protection.
- Offshore Brokerage Account - Holding a brokerage account under an IBC name ensures complete confidentiality and privacy while trading. Your account will be treated as a foreign company as long as you do not open an office or conduct any business in your home country through your IBC. An offshore brokerage account will also allow you tax-free trading.
That's it in a nutshell. For more information about offshore banking, please visit our website where you'll find in-depth information and books that specialize in offshore banking:
Peter Flowers is the owner and author of , a resource for offshore banking services.