It has been estimated that more than 50% of the world’s wealth is located offshore. Individuals and Corporations have been banking and investing offshore for years. Their reasons are plentiful and vary according to their circumstances. Some reasons you may require offshore financial services include:
Privacy and Confidentiality
Some people believe that it is their right to have absolute privacy in their financial, business and banking affairs. In most countries it is very difficult, if not impossible, to accomplish this due to the lack of privacy in the country’s banking system. While the Bahamas has strict international compliance standards it also offers a high level of privacy and confidentiality.
In today’s society, whether you are an individual or corporation, you are susceptible to law suits. This can place your assets and future at risk. By setting up an international corporation, you can protect your assets from creditors and possible judgments. This can be accomplished through utilization of vehicles such as trusts, International Business Corporations, bank accounts, and other options.
Favourable Tax Laws
One of the most attractive elements of investing in The Bahamas is the tax-free status accorded to income. There are no taxes levied on capital gains, corporate earnings, personal income, sales, inheritance, or dividends. This tax freedom is available to all resident corporations, partnerships, individuals and trusts.
Access to International Markets
International markets are offering very competitive rates of returns on mutual funds, investment certificates and other investment vehicles. The lack of taxes in The Bahamas allows for higher returns in certain circumstances. This is attractive to many investors.
The laws in The Bahamas can make estate planning less complicated. As a result, it may be prudent for one to consider the utilization of offshore vehicles as part of the estate planning process.
International Banking is very big business. As a result, some companies are diversifying by creating their own offshore bank. Having an offshore bank allows a company to utilize bank services for its own operations such as loans, mortgages and debentures. Some even have their own credit cards.