Perhaps you are considering putting some of your funds into offshore accounts. If you are like many people, you may be somewhat hesitant about this idea. However, you may be misunderstanding offshore banking which is resulting in irrational fears about putting your money on foreign soil. In fact, here are 5 misconceptions about offshore banking.
Limited Locations
When you think of offshore banking, you might be thinking of a handful of locations that are commonly mentioned with the subject, such as Switzerland, Cayman Islands, the Virgin Islands, and Hong Kong. While these destinations are very popular for offshore banking, they are not the only option for you if you want to protect your money abroad. Many countries around the world will allow you to open a bank account there in which you can store your hard earned cash. Think global and broad, not just specific.
Too Expensive
Banking overseas doesn't have to cost more than your current bank in your home country. Keep in mind, however, that each bank is different. You will also be taxed differently on your finances depending on your home country and your banking country. Still, banks are competitive - they are incentivized to offer the best rates to continue to attract business. Therefore, you can likely find comparable value to your home bank in another country.
Too Complicated
As with any bank account, there will be some forms you need to fill out. However, providing information is a given necessity when dealing with banking. It is not necessarily any more complicated to open a foreign bank account, although you may want to delegate some of the paperwork to a professional attorney or accountant, as with any financial decision.
Requires Additional Citizenship
While some banks may require a passport or proof of local citizenship, many banks will allow you to open an account with them without holding a passport of the same country the bank is located in. Use this to your advantage to expand your horizons.
Illegal
Some people might think it is illegal to hold foreign funds. However, be careful not to try to evade taxation from your home country. Play by the rules and there is actually a lot you can do with overseas accounts.
Whether you are trying to make the most of your business or personal funds, offshore banking can help. By offering additional protection and diversification, offshore accounts are considered by many to be a form of peace of mind. So don't be scared of offshore banking, but rather embrace it if you feel it is something that applies to your personal situation.
To learn more about offshore banking, visit a website like http://www.hfsoffshore.com.
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