A simple aspect of offshore banking is seen in offshore savings accounts. In many tax advantaged locations interest on deposits is not deducted. Although the saver may need to declare savings interest “back home” the ability to let savings compound throughout the year on the untaxed balance will increase the return on your savings.
Interest on a certificate of deposit may be paid quarterly offshore but not be taxable in your home jurisdiction until you return the money to your home jurisdiction.
Tax laws will vary from country to country and from offshore jurisdiction to offshore jurisdiction. However, banking in tax advantaged jurisdictions will usually save you money.
If you allow your savings account to accrue over the year and pay taxes “back home” only at year’s end you will make a higher compounded rate throughout the year with will in turn accrue over the years ahead of what you would have seen with an account that stayed in your home country.
This same principle can apply to trusts, off shore funds, and investment bonds as well. If you are uncertain about the tax laws in your home country talk to your accountant. If you want to find a stable, trustworthy offshore banking jurisdiction you should talk to an offshore specialists about this.
Offshore funds, trusts, and investment bonds may be treated the same way depending upon your country of origin. In this case interest compounds tax free and is not taxed offshore upon withdrawal which is when the income from the investment vehicle will typically be taxed back home.
These any many other advantages becomes available by going off shore. Then the next question arises, about where and how to invest and save in tax advantaged locations.
Belize Offshore Banking
Opening an offshore bank account in Belize is easy. You do not even need to go to the bank. You can be introduced to a reputable, competent, trustworthy bank in Belize. You can set up your account online and by fax.
Belize has local, Belize banks, and international banks doing business in Belize. An offshore specialist cn easily help you with the right banking choice for your needs. The banking guidelines in Belize provide you with unparalleled privacy and security in handling of your accounts and transactions.