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What is Offshore Banking?

Offshore Banking is normally defined as opening and using a bank account in a bank located in another country, usually a country that has relaxed tax laws. Offshore Banking also refers to banking transactions undertaken in a currency other than your own.

Asset Protection

Generally offshore banks are used as a form of asset protection. By moving control or storage of certain assets to another country you may be able to avoid paying some or all of the relevant taxes associated with using, investing or disposing of the asset in your home country.

Contractors

If you are a contractor who spends most of your time working overseas or for foreign companies, it can be advantageous to have an offshore bank account that you can use to handle all your income and investments, regardless of where you normally live.