The concept of offshore banking is still sketchy in the minds of most people. In fact, there are too many myths associated with overseas banking today...so much that it has emerged as a toxic term today. It has come into the spotlight; thanks to the media that often malign the functioning of offshore banking every time a tax-evasion case pops up. Most often, it has been termed illegal without precisely knowing what it is all about.
In this article, Wolfgang Zulauf – a banking expert – will bust the common myths of offshore banking and expose the truth that mostly remains hidden. So let’s get started.
Truth 1: You Do Not Need Huge Money to Open an Offshore Bank Account
A common misconception prevalent among average person is it takes a lot of money to open an offshore bank account.
The truth is – opening an account with an overseas account does not have to be expensive. In fact, there are offshore banking institutions such as SUISSE BANK PLC that require an initial deposit of as low as 10,000 EUR for private account and 25,000 EUR to activate a corporate account.
Truth 2: You Can Remotely Open and Manage Your Offshore Account
Many individuals and businesses consider offshore banking unreasonable because the banks are located in a different jurisdiction. That means you have to be present physically to open a bank account, make investments and manage transactions. While there are few offshore banking institutions that want you to be present in person, but that is not universally true.
Many overseas banks provide a digital banking facility wherein the entire account opening process, document submission and other transactions can be done remotely from anywhere and anytime.
Truth 3: Offshore Banking is Not Illegal
Another misconception about overseas banking is that people and businesses open an offshore account to evade tax or to hide their wealth. However, the truth is offshore banking is not illegal or shady unless you portray it that way. Yes; it is significantly easier to evade taxes this way because most other countries are least bothered about your home country’s tax affairs. That is why many banking institutions or offshore jurisdictions market them in a way so as to maintain 100% banking privacy.
To put it simply, banking overseas is not unlawful; hiding it is. Unless you are not using your bank account to evade taxes or money laundering, there is nothing that you should worry about.
Truth 4: You Can Make Global Investments
Unlike local banks that mostly direct your wealth to their own financial products, overseas banking institutions provide lucrative investment opportunities in global markets. Through your account, you can trade in foreign stock exchanges, cryptocurrencies or other investment products, and often, without brokers intervening in the process.
Conclusion
Banking and finance expert, Wolfgang Zulauf, feels there is an urgent need to have the facts correct regarding offshore banking. It is crucial to thoroughly evaluate any financial decision you make and measure your risks to maximise the returns.
