An offshore bank account may be held either by an individual or a company
Despite profile differences between individuals and companies, offshore banking offers several benefits and advantages for both type of customers:
- Offshore banks provide access to politically and economically established jurisdictions, which are also provided by developed countries with regulated banking systems;
- Some offshore banks which have lower expenses and a lack of government intervention may operate with lower costs and provide higher interest rates than the rate in a national bank;
- Individuals who do not pay tax on worldwide income or who do not pay tax until the settlement of tax return may benefit from exemption on interest tax, which is normally paid by offshore banks without tax deducted;
- Offshore banking is often connected to offshore companies, offshore trusts or other offshore structures, which may have specific tax and asset protection advantages;
- Offshore banking also provides advantages to the industry by making additional tax and banking competition, procedures which allow clientele to choose the appropriate balance of banking services and taxes.
