An expatriate is a person who resides temporarily or permanently in a different country and culture other than his/her own legal residence and place of upbringing. When it comes to offshore banking, this class of people is the privileged class. ‘Why so?’ is a question that we need to answer. This is because they are free to choose the best option from the global financial market.
Depending on the tax structure of the home country, certain facilities may however be limited. During the entire period when they stay abroad, they can use the facilities of an offshore bank along with the tax and investment benefits! They do not have to seek the permission of the offshore jurisdiction to enjoy the advantages of the offshore banking system. It is so because, there are certain countries which allow tax breaks, investment opportunities and several other banking advantages which are not available to the regular citizens of the country.
Offshore banks provide the following advantages to the expatriates irrespective of the financial well being of an expat:
- Tax efficiency
- Flexibility and High accessibility
It is not that you need to hold an account for saving or depositing only. The offshore banks give an added advantage to the expats. If you want an account only for receiving money then also, you can have an offshore bank account. On top of that, any interest accrued on the received money will be free of tax liabilities even though it is an income! These banks offer you to choose among a wide range of accounts. If you go for a current account, you can have instant access account or a cash/debit/credit card access account. If you are looking for a savings account then, you can have one with notice account and term deposit. You can also choose to have an account with various interest rates that you need to pay. The interest rates, however, depend on the restrictions imposed on the accounts. Remember, you should be an expatriate!
When the question comes to accessibility, you can have internet access, telephone access, direct debit and even standing order. Amazingly, the choice of currency for the account lies with you. The offshore banks also provide secured and unsecured credit cards. You can also have an offshore debit card which acts in an identical fashion to that of a regular debit card.
Among these numerous facilities, you still have a small glitch. You just have to choose an offshore jurisdiction with proper regulation and avoid unethical activities. ‘Happy Banking’!