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You are here: Home Finance & Business Banking Pros and cons of offshore banking
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01/04/2008Pros and cons of offshore banking

Pros and cons of offshore banking Offshore banking can be carried out legally and is not just about money laundering or tax evasions.

The term offshore banking originates from the Channel Island and defines banks located in tax havens. The majority of offshore banks are located on islands, but exceptions such as Switzerland, Luxembourg or Andorra exist.

Offshore banking may be associated with the illegal practices of money laundering or tax evasions but it can be carried out legally and comprises a number of financial advantages.

Strong privacy, less restrictive legal regulations and easy access to deposits are some of the advantages that have convinced many to go offshore.

More importantly, many offshore banks operate with a lower cost base and provide higher interest rates than legal rates in most countries.

Offshore banks generally pay interests without tax deducted. This is an advantage to individuals who do not pay tax on worldwide income or who do not pay tax until tax return is agreed.

 


2 reactions to this article

Banco Internacional de Investimentos posted: 2008-08-15 03:58:04

As everything, there is pros and cons of offshore banking. Maybe the best of offshore banking is that offshore banks have some duties, but not always are flexibles enough.

Banco Internacional de Investimentos posted: 2008-08-15 03:59:29

As everything, there is pros and cons of offshore banking. Maybe the best of offshore banking is that offshore banks have some duties, but not always are flexibles enough. http://www.bancoii.com

2 reactions to this article

Banco Internacional de Investimentos posted: 2008-08-15 03:58:04

As everything, there is pros and cons of offshore banking. Maybe the best of offshore banking is that offshore banks have some duties, but not always are flexibles enough.

Banco Internacional de Investimentos posted: 2008-08-15 03:59:29

As everything, there is pros and cons of offshore banking. Maybe the best of offshore banking is that offshore banks have some duties, but not always are flexibles enough. http://www.bancoii.com

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