Offshore Banking - Are Offshore Bank Accounts Legal and Why Would You Want One?

I am often asked why you would start an offshore bank account. Just as often, I am asked if offshore banking is legal. Offshore banks are often looked at as sneaky or dishonest. And some people would like you to keep thinking they are.

First, let me state for the record, that yes, they are perfectly legal. In fact, offshore banking itself, while the rules may change a little, needs to stay legal. Forever. The economy depends on it. Money will always need to be transferred between countries, or trade would stop. So there will always be a need for offshore bank accounts.

What is illegal is using offshore bank accounts to avoid paying taxes you legally owe. Or, if the accounts are used by criminals for illegal activities. But, of course these two things are illegal anyway. So, the offshore account is just a tool.

Think of it this way, if you use a screwdriver to break a window, you are committing a crime. But, the screwdriver itself is not illegal. It is the same way with offshore banks. They are tools that can be used for good or evil.

Also, you need to consider, that offshore bank accounts are any bank account that is opened in a country other than your country of citizenship. They don't necessarily need to be opened in tax havens. Although they often are. This is why they are often treated with suspicion.

You might be asking at this point, "Then why would a person want to open an offshore account"?

It's great that you are asking that question. Because of the false information about offshore banking, most people do not even ask. And they miss out on the many benefits for everyday people like you and me.

Here are a few reasons:

Enhanced Account Privacy

The first reason people use offshore accounts is for more privacy. Just because you have to declare your income in your country of residence does not mean that everyone has to know exactly how you earned it.

As long as the income was earned legally, isn't it your business as to where it came from? In the case of an audit, you will have to reveal the sources. But as long as it was legal, the audit itself is nothing to worry about. And you still have privacy from everyone else.

Asset Protection from Lawsuits

This is a big one. In today's society, no one is free from the threat of litigation. It doesn't matter how careful you are, some one may trip walking by your property. Or you could be sued for some other petty reason. Or judgement may be passed against you.

We have all heard stories about someone who lost everything due to some type of lawsuit. Private assets in an offshore account are untouchable if created properly. It's not enough to build an inheritance for your children. You need to protect it.

Global Access to Funds

More and more people are choosing a location independent lifestyle or moving abroad. If you have to pull money out of a US or Canadian account, when you are living in or even visiting a foreign country, it can be extremely expensive and inconvenient.

Remember, an offshore account just means a bank account that is not in your home country. So if you are living abroad, it is almost essential.

Competitive Banking Features

Many offshore accounts have more competitive interest rates than you may get at home. Or, they may have features unavailable in your own country.

There is no reason you shouldn't have the opportunity to get a better interest rate. Just because your home bank doesn't provide them.

Access to Business Investments

Over 99% of the worlds investment opportunities are not available to US citizens with US bank accounts. When you have an offshore account to invest from, an entire world of investment opportunities opens up to you.

Also, banks are only open from 9 - 5 local times. Having funds in a bank on the other side of the world gives you access when your other bank is closed.

The requirement to move money around ensures that offshore bank accounts will always be around. And will always be legal. Otherwise, the entire world's economy would collapse over night.

Having a bank account offshore has many benefits for anyone. And at any stage of their financial life. Most importantly, is it is perfectly legal, as long as you do it correctly and not use it for illegal purposes.

If you have any assets that you would like to preserve, or if you ever have the ambition to live or visit overseas, start looking into an offshore bank account today. They are no longer just for the rich.

Your assets are yours to protect and grow. You owe it to yourself to investigate every opportunity for doing so. Offshore banking is a good start.

Glen Kowalski, is passionate about helping people to protect their remaining freedoms to be able to live the way they choose, as long as they are not hurting anyone else. He believes life is too short to not experience everything the world has to offer. And thinks its impossible to really know your own country until you have had the opportunity to live in another one.