One of the most pressing tasks for companies and individuals with a high level of income is the preservation of their capital. Crises and problems in the banking sector of the native country, currency depreciation, risks of loss of assets due to legal and criminal prosecution – all this makes us think about withdrawing part of the funds to where they will be completely safe – offshore. We will consider the features of opening an offshore bank account, list the reasons for the demand for this service, and also discuss the legality of transferring funds to offshore accounts.
What does the concept of “offshore account” mean and who needs it
Strictly speaking, offshore can be attributed to any bank account opened outside the country of tax residence. However, in practice, simply withdrawing money to a foreign bank will not work: only some states are loyal to the contribution of funds by non-residents. It is such countries (or their individual regions with more loyal legislation) that are called offshore zones. To attract foreign capital, they reduced or zeroed the tax rate for offshore companies and bank deposits, minimized control by inspection bodies, and simplified the procedure for processing documents. In addition, the highest level of confidentiality is considered one of the main advantages of offshore companies.
In short, an offshore account serves to accumulate and save money, as well as to carry out any banking operations without the risk of loss of capital, audits by tax or other authorities, and the dissemination of information about the financial situation of the client. This explains the popularity of offshore companies among the most influential and wealthy individuals, as well as among international companies. If you are interested in opening an offshore account, then you can use the services of this company https://rakoffshoreic.com/.
Today, the most popular banks for placing funds by foreigners are located in the following classic offshore:
- British Virgin Islands;
- island states.
A lot depends on the chosen bank: terms of execution, cost of services, list of required documents, ability to use funds in other countries, the amount of the minimum balance.
Contrary to stereotypes, neither the registration of offshore companies, nor the opening of accounts with foreign banks is not in itself an illegal procedure and does not lead to legal liability. Of course, if the goal is not to conduct a criminal business or the legalization of funds obtained by criminal means, as well as if other violations provided for by international and local laws are not committed. However, before proceeding with the opening of an account, we recommend that you study the legal norms and restrictions that the state imposes to combat tax evasion through offshore companies.
Offshore zones and offshore accounts, despite their close relationship, have arisen with a difference of many centuries. The historians consider the first offshore zones to be the territories around Ancient Athens, through which traders went around the city in order to avoid paying mandatory taxes. “Secret” bank accounts and transactions arose much later. In the eighteenth century, French Catholic monarchs, trying to hide from their subjects their debts to Swiss Protestant bankers, demanded that the latter carefully maintain confidentiality. Therefore, it was in Switzerland that the concept of bank secrecy, the most important principle of the functioning of modern offshore companies, was first fixed at the legislative level.