Legal Benefits of Offshore Bank Accounts

There are many banks offering offshore bank accounts. These have been in the news recently due to tax evasion based on the numerous loopholes. However, there are other benefits to opting for offshore accounts. These are completely legal and business owners, in particular, can benefit from the various loopholes in the law.

Flexibility for International Transfers

Domestic bank accounts often charge high rates for international transfers and payments. This is a problem for businesses, especially those that deal with international customers. International trade is becoming more popular with the success of the internet and the ease of working from home and offshore bank accounts make it possible to make transfer internationally, in various currencies, to avoid the excess fees. This also helps for those who trade in various currencies and want to benefit when the trading is at its highest, no matter what currency they are in.

Access to Funds Easily While Abroad

Those who travel abroad often, whether for business or leisure, will often want access to their money without the excess fees charged by domestic accounts. While it is free to withdraw money from ATMs in the UK, withdrawing the money abroad brings high fees. Having an offshore account in a country that you visit often means that you can lower the amount of fees that you have to spend so you gain more out of your own money.

The Tax Loophole

Of course, there is the benefit of the tax loophole. While this is considered morally wrong by many, it is still legal! Offshore bank accounts are governed by the country that the account is in and not the person who owns the account is in. Other countries are laxer tax laws and will not take as much money from you, which means that you get to keep it. However, that money will have to remain overseas, which can cause a problem if you want to use it while at home. If you travel a lot – and to that country – you benefit from the way above too!

Offshore bank accounts could offer your business a number of benefits. They are not just for the wealthy and a good accountant will be able to help you with setting up the accounts. However, the tax benefit of offshore accounts has become more publically known due to various scandals and there are chances that these loopholes may close at a later date.