Offshore Banking FAQ - Frequently Asked Questions

Belize is a leading Caribbean offshore banking jurisdiction located in northern Central America. Many visitors to Belize are intrigued about offshore banking. The growth in international travel, and the increasing use of the Internet to make a living or help manage businesses from afar, has led to the growing use of offshore banking and offshore trusts to help manage income, money and assets. Many modern-day entrepreneurs and others have made the decision to relocate or diversify their financial affairs and open offshore accounts.

As a premier offshore banking center, Belize offers unique advantages. You can fly to Belize (under two hours from the U.S.A.) ) or actually drive up from North America - about 36 hours from Houston. Belize is a mainland country with hundreds of offshore islands. Of course you can also sail on down on your catamaran or yacht. After all Belize is also a highly regarded offshore Merchant Marine Registry.

What is Legal Offshore Banking?

It is simply banking in a jurisdiction other than the one in which you live or have citizenship or residency.

What are the benefits of Legal Offshore Banking?

Offshore Banking may have tax benefits. For example earned interest on offshore accounts and investments is paid without the deduction of tax. You may also be able to reduce your tax liability in your home country by transferring savings and investments to an offshore bank account. Added benefits include high levels of confidentiality, security and convenience, as well as global access.

Do I have to travel overseas to bank offshore?

No. You never actually have to visit your offshore bank. You can simply bank from wherever in the world you live, via a secure Internet connection, secure e-mail, post or telephone (either through a touchtone phone or by contacting your banking representative or registered agent). You can also use an ATM card provided by the offshore bank.

How do I get an offshore account?

There are several companies that specialize in setting up offshore bank accounts. We suggest the British Caribbean Bank located in Belize and the Turk and Caicos Islands. You may also consider law firms that act as Registered Agents for offshore banks. We strongly recommend due diligence by personally visiting the bank or law firm and making your own assessment as to the pros and cons of a service provider. In Belize we can suggest the following lawyers: Rodwell Williams or Emil Arquelles. Kindly mention Belize.com if you decide to contact these attorneys.

Is it legal for me to get an offshore account?

Yes, absolutely legal. Offshore banking has been routinely and legally used for many years by individuals, companies big and small and organizations worldwide. Once the purview of high net worth individuals, offshore banking has come of age and is accessible to most anyone. Because many countries encourage international trade and enterprise, there are usually only limited restrictions on residents doing business or having bank accounts in other countries. However, reporting requirements on these accounts differ from country to country.

What about income tax on income I've earned offshore?

Some countries require residents to declare their income on a worldwide basis and tax is payable on all your income. In certain circumstances the income of an entity which you control may also be taxable. For this reason, most countries have no restrictions on where your business interests, investments or bank accounts may be located. It is your responsibility to report income to your appropriate tax authority. Belize has no such requirement and best of all no Capital Gains Tax.

If I have to pay taxes why should I bank offshore?

There are many other reasons to bank offshore apart from minimizing your tax liability. Other reasons include asset protection, estate planning, confidentiality, better returns and the ability to advance active business interests overseas from a zero tax jurisdiction with near hermetic confidentiality.

I would like to keep my personal affairs confidential for reasons other than tax minimization. Are confidentiality and privacy ensured?

Offshore jurisdictions offer extraordinary levels of confidentiality but they cannot offer absolute secrecy. All financial institutions have a legal obligation to report suspicions of serious criminal conduct. Foreign authorities can seek information through the legal system, where there are well-founded suspicions of serious crime. A serious crime is defined as anything which is a crime in the offshore jurisdictions and would warrant a prison sentence of at least twelve months.

Near absolute anonymity and confidentiality are achievable via a combination of various offshore vehicles, including International Business Companies (IBCs) and Offshore Trusts. Otherwise, all personal data is subject to modern data protection legislation, and there are severe civil and criminal penalties for breach of confidentiality and unauthorized disclosure of client information.

Can I get a debit or credit card with my offshore account?

Yes. You get an internationally accepted debit or credit card. And you can access cash from ATMs worldwide.

Belize Offshore

More Offshore Banking Information

An offshore bank is a bank located outside the country of residence of the depositor, usually in a low or zero tax jurisdiction that provides significant financial and legal protection.

This protection and advantage typically includes some or all of the following.: Strong privacy - a principle arising in modern times in 1934 with the Swiss Banking Act, but which goes back to medieval times with the birth of Trusts. Less restrictive legal regulation. Easy access to deposits (at least in terms of regulation).

Protection against local political or financial instability The term offshore banking originates from the British Channel Islands which are offshore from Britain. However, the term is used figuratively to refer to banks that are legally offshore. Belize for example is a mainland country with a seaboard and offshore islands. More Belize bank Information Here.

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