The fundamentals of financial libertarianism advise all individuals to possess the utmost financial freedom that they could possess. The policy implications of such principles require there to be lower tax rates, greater financial incentives and ease of investments. Through this financial freedom, both the consumer and you as investor enjoy greater choice and profits respectively. With such an arrangement in place, you’ll find that everyone goes home happy. Today we will discuss the fundamentals of offshore banking in Belize.
Unfortunately, things haven’t panned out this way in the United States and a majority of the developed world. In the face of such blatant financial repressions, such as high corporation taxes, income taxes and different forms of personal financial injunctions; there is a need to protect you from any such penalties. As a believer of both financial libertarianism and the principles of flag theory, I can’t stress how important it is that you engage in offshore banking.
How Does Offshore Banking Work?
Offshore banking offers two essential advantages to all of those trying to protect and enhance their wealth. It offers you tax advantages in that your money isn’t taken up by the government to fund its own activities and for another, it gives you access to financial services that you might not find in your home countries.
The Tax Advantages from Offshore Banking
As a citizen of any specific country, you are bound by certain rules and regulations that govern how you live your life and conduct your financial activities. The government charges you taxes for the privilege to conduct financial transactions for profits or your own benefit and so-called requested services they believe is every citizen’s right. For as long as your wealth originates and is saved in the financial systems of your home country, you will have to pay a tax on it, unless of course, you live offshore in a tax haven country.
Offshore incorporations and offshore banking give you the opportunity to make sure that your national government doesn’t get its hand your money. A company set up in a tax haven, deriving income won’t be taxed according to the high tax rates of your home country so long as you don’t reside there or bring the money back there. Since the company originates in the tax haven, it will be treated by the tax laws of the country that it’s been set up in.
For example, if you set up a company in Ireland and you reside outside the US, then you won’t be taxed according to the tax regulation in the US but instead at the 12.5% corporate tax rate in Ireland. As such, you’re allowed to enjoy a greater degree of your wealth than you could have otherwise if your company was set up in the US. Whether you want to reinvest this money back in the company, enjoy it for personal benefits, the US government can’t touch the money under any circumstance.
The Opportunities Presented by Offshore Investments
In addition to these tax advantages, working with offshore banks also presents you with the possibility of accessing specialist financial services and investment opportunities across global markets. Singapore, for example, is known throughout the world for its wealth management services and investment opportunities that you otherwise might not find available to you. Similarly, Switzerland specializes in offering unparalleled privacy for your financial assets.
Equipped with these services, anyone who chooses to move their money offshore can be sure that their financial well-being isn’t compromised under any circumstance. As they move their financial interests to offshore locations, they are effectively protected from any undue financial exploitation from potentially oppressive financial institutions.
Belize is perhaps one of the most investor and depositor friendly financial systems in the world. The country has literally made financial accessibility the core driver of its economic growth, to attract foreign investments through a financial structure which would protect investors from excessive taxation. In addition to this, the country is a party to multiple trade agreements which allow national companies to benefit from favourable and profitable trade terms.
In particular, these advantages include:
No Taxes on Offshore Banking
According to the International Banking Act, no international bank with the license to conduct offshore banking activities would ever have to pay taxes on any profits or gains made or transactions taken place. So, whether you’re just saving up or if you’re conducting transactions through these banks, you won’t be expected to pay any taxes on these services at all.
Access to International Markets
The process of setting up an offshore account in Belize is very convenient and rather simple. If you work in association with an offshore incorporation service based in Belize, they can have your companies incorporated within the week. With this, you have access to the various trade advantages of working as a native company in Belize.
The Belizean government has gone out of its way to sign investment treatments within the Netherlands, Austria and UK to create favourable investment terms for all investments on both sides of the border.
Related Blogs & Podcasts
Last week I wrote another article on Belize Banking. If you haven’t had a chance to read then check it out now.
I know you will find my article on Going Offshore – A Guide to Asset Protection – Part 1 extremely interesting as well.
Rachel Jensen from ECI Development was a guest on The Expat Money Show. She shared some extremely valuable information on buying international real estate which can be facilitated with a lot more ease using an offshore bank.
Belize is literally a no-brainer when you’re thinking of taking your financial assets offshore. There are very few places in the world that offer as many financial advantages as compared to Belize. The state system has developed policies which welcome investors and protects their interests under any circumstance from all types of exploitation. When you look at it from the lens of the flag theory or from preserving your financial liberties, Belize probably presents one of the best options for your financial freedom.
For more information on opening an offshore bank account in Belize, GO HERE
About The Author
Mikkel Thorup is the host of The Expat Money Show podcast and Director of Content at Escape Artist. He is also the author of #1 Best-Selling book Expat Secrets on Amazon. 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 is to help people 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. For more information on his legal (but creative) tax strategies for Expats watch this free video.
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