If you think offshore banking is for the super rich, money launderers, drug smugglers or tax evaders, it’s time to think again.
The reality is that the average person can benefit in a big way by investing offshore, and it’s no more illegal than sending yourself offshore.
Do It With Ease
The person who invented the Internet should be sainted. Because of it, practically everything has been made easier, and offshore banking is a prime example.
In many cases, your offshore account can be set up in a matter of hours if not minutes. Opening an account online is very much like opening a new account at your neighborhood bank.
The basics you’ll need to provide are:
- Your personal information (name, date of birth, address, occupation and citizenship). These can be satisfied with a photocopy of your passport, driver’s license or even a copy of your most recent utility bill.
- Reference documents from your current bank that provide an average of your balances. Bank statements from the last 6-12 months can do the trick.
- Proof of where your funds are originating from. A copy of your paycheck with employer information is often enough.
Choose a Currency For Your Account
Chances are good that, after you establish your offshore account, you won’t be dealing in dollars and cents…and that’s a good thing.
Offshore accounts usually give you the option of which currency to secure your earnings in. This is beneficial if your country’s currency is not stable. You may be able to earn interest on your deposits with certain currencies.
Minimize Your Tax Exposure
It’s ok to admit it; we’re all friends here: No one likes the IRS. If it’s possible to significantly – and legally – reduce your tax bill, why not do it?
There’s a host of countries lined up to offer you tax incentives for opening accounts in their banks. Put yourself in their shoes: if you’re the head honcho of a tiny country with limited resources, attracting investors would be near the top of the list to dramatically increase economic activity.
Keep in mind that as a US citizen, you’re still going to be taxed by the IRS for any money you earn anywhere in the world. That’s while you’ll need to file an FBAR (Foreign Bank Account Report). So while you will not be able to evade your federal income tax responsibilities, the amount exposed to taxation can be seriously reduced.
Ensure Your Business Remains Your Business
It’s fairly easy for the US government or even your neighbors to get a glimpse of your financial activities. Nobody likes that. Some countries have established laws that prevent banks from giving out information about account holders. Unless you’re suspected on an shady things like drug trafficking or money laundering, your business will be no one else’s business.
Do The Smart Thing: Let an Expert Help You
We’ve talked about the benefits of offshore banking. Actually, there’s lots more benefits to it than the ones we’ve discussed here. But to make sure you’re able to reap all of the benefits you’re entitled to, work with an expert.
There’s a reason why we know what the fine print means, and it has nothing to do with our glasses. We know all about things like FBARs, and would love to talk with you about it.
Send us a note so that we can start working on your behalf. Contact Eric Stuhler at firstname.lastname@example.org.