Offshore Protection

[Christine94]

Offshore banking has caught the fancy of the world investor today. The world of benefits offered by the offshore banking has made this shift in the investment behavior. The benefits from offshore banking range from tax incentives to protection of assets. It’s the combination of these benefits which make offshore investment desirable. An offshore account is nothing but availing the services of a bank that is located in a different jurisdiction.

When an investor opens an offshore account, he or she becomes eligible for the benefits of being offshore. Offshore banks are usually located in areas which have a stable political and economic scenario. So the investor can be free from the fear of losing his money and assets under political turmoil. The customers can also protect the assets from claimants by tying it to a foreign country. This is especially true in case of divorce and other such malpractice litigation. Global asset protection needs have reinforced the importance of offshore investment.

The taxes applicable on the offshore accounts are way less than those applicable on onshore accounts. This allows the investor to save money in the form of taxes. The offshore banks apply less tax or even zero taxes in some cases, as they are not bound by the rules and regulations of any territory. As such they have a low cost of operation, which they transfer on to customers in the form of lesser taxes. The banks offer this in order to attract more offshore customers.
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