Benefits of an Offshore Bank Account
A savings account is more than just a low risk place to keep money, it is a fundamental part of your wealth strategy. Whether you are working to achieve a long-held dream or planning for retirement, choosing the right savings account now can be a step on the journey to future financial freedom.
Offshore savings accounts may provide the ideal conditions for building wealth in tandem with managing your personal finances – plus a range of other benefits – for expats looking to optimise their capital while living or working abroad.
These include:
Convenience – Saving offshore enables you to deposit and withdraw funds in a variety of currencies. You’ll also find that choosing an offshore savings accounts helps you to keep a closer eye on your growing wealth. Keeping savings in the same physical location as other accounts makes day-to-day financial operations – like paying school fees or rent – that little bit easier.
Low risk – The Isle of Man (IOM) economy is famously stable, making it a desirable place to watch your savings grow. A traditionally strong, transparent judiciary and highly developed financial infrastructure enable offshore savers to bank with confidence. IOM law requires that banks maintain high levels of capitalisation and provide strong protection for depositors, which means that IOM savings are very safe.
Tax efficiency – Interest on UK savings accounts is paid net, meaning basic rate tax is deducted before you receive your interest. Interest on offshore savings is paid gross, although in some countries you will be subject to an EU Withholding Tax if the UK has an agreement in place with the country you have your savings in. Even if a withholding tax is not applied, you still have a legal obligation to declare any interest to HMRC and the amount of information being shared across borders has increased substantially to prevent tax evasion. Failure to declare funds in accounts offshore can result in heavy fines, but depending on the type of account you have, you may still be able to benefit from tax efficiency if the tax does not become payable immediately.
Banking and budgeting is never fun, but the rewards of long term saving in a safe and secure environment,can mean a far more comfortable lifestyle in retirement. Together we can review your current outgoings and find ways to reduce them whilst making the leftover money work in your favour.
To arrange a free budget review or for further information, contact me. I will be happy to help with whatever questions you may have.
Rob
E:robert.gourlay@holbornassets.com T;(+6)01151565649 W;www.rgwealthsolutions.com
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