Offshore Banking

[johnh101]

Can anyone explain in layman's terms the difference between an offshore bank account in , e.g. IOM, Channel Islands and a Swiss Bank Account.

Thanks

[EVO]

There are many more qualified persons than i, but offshore banking means you dont pay tax on the funds in there. They also usually offer a higer interest rate than regular banks.

Im still a newbie with regards to this and am looking at the options right now so ill be watching this thread carefully.

[LivinLOS]

In laymans terms..

They dont deduct withholding taxes..

They dont tell governments you have it...

sssshh its a secret.

[Ajarn]

I'm interested, too. Any links or info for the completely clueless newbie? Safety and access are my main concerns.

[ArtfulD]

Someone gave me a link of a group that seemed reputable and their website

http://swiss-bank-accounts.com/e/faq/index.html

is very informative.

On withholding tax also, I do believe with new EU banking laws etc coming in that the Swiss chose to withold some tax rather than give up their secrecy, thus at some point in the future taxes will be withheld (obviously their dragging their feet on this issue however) ive read somewhere that talks of introducing the withholding tax stalled....Swiss bankers fighting tooth and nail here

[OldAsiaHand]

People tend to use the phrase "offshore bank account" as if it were somehow magical, but all the phrase really denotes is the existence of a bank account in a country where you are not resident. If you live in Gurnsey, for example, a Gurnsey bank account is not offshore.

Offshore accounts are not secret. Some jurisdictions will furnish less banking information to government authorities than others, but what they furnish and to whom depends as much on your country of residence as it does on the country where the bank account is held.

The advantages and disadvantages of holding bank accounts in countries where you are not resident turn on a great many things, far too many to discuss here. The laws of the country of your residence, the laws of the country where you hold your account, and what you wish to accomplish by having that account are the major factors but, by no means, the only ones.

I don't mean to lecture here, but you asked a hugely complex question and, without more information on your particular circumstances, there is really no way anyone can give you a specific answer that is of any value.

[Harmonica]

Can anyone explain in layman's terms the difference between an offshore bank account in , e.g. IOM, Channel Islands and a Swiss Bank Account.

Thanks

Switzerland has no shore!

If you're American and one of your priorities is secrecy, open your account anywhere but ....

The gnomes are in bed with the IRS and have been getting their monthly dose of humma-humma for several years now.

The only banks remaining that has told the IRS, in no uncertain terms, to take this --- are SBI, NKNB & FYM

Even Belize, Guate, Brazil all perished in the last few years.

If it must be offshore, rent a room annually at/on one the islands and stick it all under the mattress!

[daxbr]

...

The only banks remaining that has told the IRS, in no uncertain terms, to take this --- are SBI,  NKNB & FYM 

...

<{POST_SNAPBACK}>

What are those banks?

[desi]

Can anyone explain in layman's terms the difference between an offshore bank account in , e.g. IOM, Channel Islands and a Swiss Bank Account.

Thanks

<{POST_SNAPBACK}>

Switzerland has no shore!

If you're American and one of your priorities is secrecy, open your account anywhere but ....

The gnomes are in bed with the IRS and have been getting their monthly dose of humma-humma for several years now.

The only banks remaining that has told the IRS, in no uncertain terms, to take this --- are SBI, NKNB & FYM

Even Belize, Guate, Brazil all perished in the last few years.

If it must be offshore, rent a room annually at/on one the islands and stick it all under the mattress!

<{POST_SNAPBACK}>

care to enlighten us?

[astral]

I am not sure what the Swiss rules are these days, but they used to charge you

to keep your money. The advantage was the secrecy.

The UK offshore banks, IOM and Channel Islands all have security.

The islands have strict laws about the way the banks are run, so the chance of failure is small.

Secondly the banks are usually backed by their mainland equivalents, again providing security against failure.

Opening accounts offshore, or anywhere these days is not easy.

You must provide proof of identity and address.

As long as you live outside Europe the interest is paid tax free.

[simey]

I use an off-shore account, but that is to protect my tax liability. For example, currently the UK wants you to pay tax on money earned even if you don't live in the country (resident but not domiciled). This would not fly, but what they can do is tax you on money once it is transferred into the UK. For people like myself that travel constantly, don't live in the UK, and don't live anywhere else long enough to pay tax, an offshore account allows you to keep your income without paying income tax.

The interest rate is a standard business account, basically very little.

The only reason to use one that I could see as an individual is they way I explained, and it may be more work than it is worth.

[sinkorswim]

I use an off-shore account, but that is to protect my tax liability. For example, currently the UK wants you to pay tax on money earned even if you don't live in the country (resident but not domiciled). This would not fly, but what they can do is tax you on money once it is transferred into the UK. For people like myself that travel constantly, don't live in the UK, and don't live anywhere else long enough to pay tax, an offshore account allows you to keep your income without paying income tax.

The interest rate is a standard business account, basically very little.

The only reason to use one that I could see as an individual is they way I explained, and it may be more work than it is worth.

<{POST_SNAPBACK}>

interested in a offshore account any chance of telling who you are with