Offshore banking is one of the best ways to avoid tax payments and other financial regulations. Syphoning your personal income or your company profits to tax havens can save you large sums of money. It gives you access to specialist financial services and may also give you access to novel investment markets.
Forming a major component of Flag Theory, offshore banking is an integral part of achieving absolute financial freedom. As you save up more money and create lucrative investment portfolios, you can live a life unencumbered by financial and civic obligations.
Why Move Finances Offshore
When you’re trying to achieve financial stability and sustainability, an offshore bank account can offer major tax and financial advantages. Some examples of the advantages you can enjoy are:
Tax Breaks and Low Tax Payments
Once you’ve moved your funds out of the country, it no longer falls under the jurisdiction of the country of origin. Although you may still be subjected to native financial regulations, since the funds originate in your home country, differences in banking regulations can offer higher profits and low-profit taxes.
Banking systems in Germany and Switzerland literally thrive on the privacy that they offer to clients. Shifting your funds to these banks can ensure that your financial records aren’t scrutinized for any reason, but this is starting to change with unethical programs like GATCA (Global Account Tax Compliance Act) and FATCA (Foreign Account Tax Compliance Act).
Specialist Financial Services
The banking sector in Singapore is known for the financial expertise their consultants can offer. Since the country is at the centre of the world’s finance, Singapore has specialized in financial services. With their advice and portfolios, you can develop immensely profitable portfolios and low taxes on profits.
Setting Up Your Tax Haven
When we say set up your tax haven, this implies moving your finances across advantageous locations across the world that don’t have high tax rates or stringent tax policies. Some ways you can save your incomes and profits from high taxes are:
Syphoning Funds Directly to Foreign Banks
If you move your incomes to offshore banks, then these become a part of the economic systems of these countries. These funds are going to be difficult for your native countries to go after considering how they’re no longer part of your native country’s financial systems.
Registering Companies Offshore with Native Banks
Corporate profits are subjected to huge amounts of taxes owing to the scale at which these major organizations generate revenue. To avoid having to pay these corporate taxes, these entities register themselves in offshore locations to let offshore banks manage their funds.
This reduces the amount of tax they have to pay on their revenues and banking practices ensure that the profits are untouched even if interest is generated on these funds.
Transferring your wealth and incomes to these countries is an easy enough process. It involves filling out some very basic paperwork and registering addresses and offices in the country of choice. As long as you are not American, once your wealth is associated with offshore locations, you are no longer supposed to pay taxes on incomes because the incomes aren’t in your home country anymore.
Expat Money Show is a financial consultancy that offers clients the opportunity to move their financial assets to offshore locations for immense financial advantages. We specialize in helping clients create offshore banking accounts, offshore companies in addition to advising them on the best offshore locations and ways to preserve their wealth. Get in touch with us today for more information on our service or to hire our services as your consultants.
ABOUT THE AUTHOR:
Mikkel Thorup is the host of The Expat Money Show podcast and the author of #1 Best-Selling book, Expat Secrets. He has spent nearly 20 years in continual travel around the world, visiting more than 100 countries including Colombia, North Korea, Zimbabwe, and Iran.
His goal now is to help Expats just like you to generate additional streams of income, eliminate your tax bill, and take advantage of offshore structures so you can travel the world freely and never have to worry about money again.