Remember the old Tom Cruise file ‘The Firm’. This film introduced the stigma behind using offshore bank accounts for the wrong reasons. The truth is that they are useful for many legitimate reasons and I will now talk you through some of them and the uses and benefits of the same.
Many people from all walks of life simply think of the rich and famous of the only people in the world who might have offshore bank accounts. I suppose that in some wat this might be true as they have become resident in other jurisdictions for either tax purposes or just to have a better quality of life in a sunnier destination. Let us face it, most of the countries associated with having an offshore bank account happen to be in sunnier climates such as The Cayman Islands, The Seychelles, or Barbados.
It can be sensible and financially prudent to have an offshore bank account for many reasons. For example, when owing a holiday home that needs rent collecting, consulting, or working with other countries who prefer to pay bills in different currencies. All the top Companies in the world will own an offshore bank account for this purpose.
An offshore bank account works the same way as any other bank account. You are provided with an online platform to log into and operate the same way as you would with your home bank account. You will be provided with a debit card, and an international bank account number that can be used to send and receive money anywhere in the world (unless the country has sanctions against it). Most offshore banks now provide the same simple online benefits and operations as the everyday banks you use at home.
Just because your bank is based offshore either in your personal name or in an offshore company name you can use your debit card to withdraw cash and purchase items or use the card for Company purchases.
Offshore accounts can offer beneficial multi-currency accounts allowing you instantly transfer between Euros, Pounds and USD. Depositing funds is as simple as providing your IBAN number to your client or individual who wishes to send you funds and, in some cases, can be instant. Sending funds is just the same.
Most importantly, do your research, you will need to liaise with a reputable agent that can advise you as to which bank is suitable for your requirements. In all industries there are warning signs. Avoid high monthly fees and large initial deposits, remember that any business should want your business and should be competitive.
Jurisdictions like Hong Kong, The Isle of Man, BVI and more offer safe, reputable offshore banking solutions for your offshore company or personal requirements.