What Is an Offshore bank account?

An offshore bank is classified as a bank account located outside the holder’s country of residence.

Offshore accounts generally come with high levels of privacy, offshore asset protection and low tax rates. To find out more about the benefits of an offshore bank account, continue reading.

Financial Security

Financial security is one of the key benefits of an offshore bank account.

For an account holder where their home nation has an uncertain or unfavourable economic climate with risks such as high inflation, bankruptcy or seizures, an offshore bank account can offer higher levels of security and privacy.

It’s vital to select the right jurisdiction for your offshore account, but most offer the level of security required by account holders.

Convenient

Offshore bank accounts are renowned for their convenience. It is often the case that expats cross borders frequently, moving between countries for business and leisure. Opening a current account in each new country would be both inconvenient and time consuming.

An offshore bank account provides a perfect solution for those who move about frequently and are not based in a single country. This is because offshore bank accounts can be accessed from anywhere of the world. This provides account holders with 24-7 access, irrespective of where they are living at one time.

Tax advantage

Tax advantages are another key benefit to offshore bank accounts. Offshore banks are generally located in what is commonly known as tax neutral jurisdictions, due to their favourable tax arrangements.

Asset Protection

Offshore accounts generally come with offshore asset protection.  In many countries, the banking system offers poor protection to account holders’ wealth and assets. This can pose serious risks to asset protection.

However, an offshore bank account can offer higher levels of security and protection over your assets, particularly when opened in a highly transparent and regulated jurisdiction.

Privacy

Another benefit of offshore bank accounts is that they offer higher levels of privacy.

Many offshore banking jurisdictions have strict laws around corporate and banking confidentiality.

Foreign exchange services

Often, offshore bank accounts offer specialised online currency exchange services. This makes moving money around quicker and easier than traditional international bank transfers with different currency accounts.

Offshore bank accounts also allow holders to hold diverse currency, meaning they can own different currencies and make transactions with multi-currencies. By consequence, this means accounts are not so easily influenced by currency fluctuations seen in some home countries.

Getting an offshore bank account

Charterhouse Lombard are on hand to assist with obtaining an offshore bank account. To find out more, get in touch with our team today.