Offshore Bank Accounts
iLuxury Global can open a bank account in over 49 countries on your behalf. Contact us to discuss opening a personal or business account.
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. Offshore banks offer ways to legally move your 401K account to an offshore account to help finance your retirement income or build the ultimate retirement home.
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 touch tone phone or by contacting your banking representative or registered agent). You can also use an ATM card provided by the offshore bank.
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 exclusive 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 tax authority. Many offshore accounts have 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. Debit and credit card cards can be issued in your name, or the name of your offshore company or trust. The latter arrangement can be of particular personal safety benefit when traveling in high-risk areas such as the Middle East, Africa, the Arab world or other hot spots where carrying credit or debit cards issued in western countries can be a liability.
As of June 2015 the offshore banking industry is undergoing a transformation. Western countries have been exerting pressure on offshore jurisdictions to enact regulations in an attempt to bring more transparency to the industry. In a statement to the media on June 23, Prime Minister Dean Barrow declared that “The international community is determined and has been determined for a while to close down our offshore sector. This is just a continuation of the kind of actions they have been taking over a period of time now. Stretching back to try to achieve their objective; what I saw, somebody made the point that their own offshore jurisdiction I love they said nothing about them so that is what is involved there. I have no doubt that sooner or later they will succeed. This is the empire striking back but I think our offshore people have been preparing themselves for a while now because it has been like I said a constant onslaught. I am sorry to say that I wouldn’t be surprised that if in the end they don’t achieve their objective.” Several banks in Belize are currently moving away from consumer type offshore account activities, and adopting a more offshore investment banking focus.