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.
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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 as well and serves as a marine registry for several private and publicly traded shipping companies around the world.
The year 2012 marks the 22nd anniversary of the birth of Belize’s international financial services industry. Starting from scratch in 1990, Belize has built up a thriving financial services business. Belize now offers a variety of offshore structures geared to the needs of international investors. These include international business companies, international trusts, protected cell companies, limited liability partnerships, mutual funds, captive and other forms of insurance, international foundations, forex and securities trading, open ships registry, and a host of other related services.
Why Belize For Offshore Banking?
Noted American writer Bruce Barcott describes Belize thus: “Belize is a tiny nation tucked between Guatemala, Mexico, and the Caribbean Sea. It is firmly attached to Central America but considers itself a Caribbean island. For more than a hundred years Belize was known as British Honduras, one of the most remote outposts of the British Empire, which explains why it is the only Latin American nation to embrace English as its official language. Belize goes unnoticed by the rest of the world, and over the years the country has parlayed its obscurity into an attractive asset. For those shipwrecked on the shoals of life, Belize offers a new beginning.”
Here we offer our popular Offshore Banking FAQ. Based on Belize, many aspects cover other offshore jurisdictions.
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 touch tone 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 and Belize Lawyers 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. The first step to an offshore account is to establish an International Business Comapny, also known as an IBC.
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. U.S. News and World Reports says Belize is one of the Top Ten Retirement Destinations In The World.
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.
INFORMATION COURTESY BELIZE.COM LTD….. (Retrieved from their website at www.belize.com)