Good Reasons to Consider a Foreign Bank Account

offshore tax havenSecret offshore tax havens get a lot of bad press.  What are some good reasons to consider a foreign bank account?


The Panama Papers and the Paradise Papers are investigative journalism projects based on high-level leaks of sensitive information about where the world’s elite stash their cash when they want to avoid taxes and unwanted publicity. 


Negative publicity about wealth held in secrecy jurisdictions to avoid taxes has ruined careers, triggered criminal tax charges, and generally exposed high wealth individuals and companies who skirt regulations to earn or hide unreported income.


Despite the unfavorable media attention, it is important to know there are some very good reasons to place your wealth in legitimate offshore tax jurisdictions and foreign bank accounts.


Top reasons to consider offshore banking opportunities


An offshore account is a financial product offered in regions around the world.  Banks and investment institutions offer accounts in their countries of origin and also in jurisdictions around the globe that are known for their low tax rate and regulatory ease. 


There are a flurry of reasons why offshore banking could be a good option for you.  A destabilized economy in any country is a good reason to diversify your wealth in one or several safe harbors.  Here are some reasons to consider an offshore account:


  • Asset protection: An offshore company or trust may be structured to legitimately protect the wealth of an owner from exposure to legal or tax actions.
  • Growth of wealth: Placing value in accounts that earn substantial interest is a good way to profit from your existing wealth.
  • Protection from instability: Fluctuating currencies, governmental action, and civil volatility are rife in the world today.  An offshore account, depending on its location, can offer stability that is not easily had in a home country.
  • Diversity: Wealth in various places, tools, and properties can improve tax opportunities and hedge against volatility in any one investment sphere.
  • Privacy: Structured trusts and companies offer privacy to well-known individuals who would prefer their financial dealings to remain private.

A foreign bank account or offshore company could be a smart addition to your wealth management portfolio as long as you maintain compliance with US tax regulations such as FBAR, FATCA, and other tax reports.


When you have questions about offshore tax havens and US tax regulations, speak with an experienced tax attorney.


Talk with a knowledgeable IRS tax lawyer in Cleveland


The law offices of Robert J. Fedor, Esq., LLC provide skilled legal guidance on offshore tax matters, tax audits, and criminal tax matters, among other tax issues. If you have questions on local or international tax questions, contact us online or call us at 800-579-0997.


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