Definition: Offshore "is a term that does not appear in dictionaries. The word "shore" refers to the dividing line between sea water or lake and land, because most of the "offshore centers" are located on islands. The development in recent years of this parallel world, alternative and / or complementary has been huge and in direct relation to increasing the tax burden in developed countries. Spoken that half the world's money is offshore.
The word "offshore" means literally "offshore." One of the more extended versions on the origin of the term (applied to the economy) takes us back to the Middle Ages. Apparently, the boats came together at sea for trade, thus avoiding the taxes that would have applied to their goods had docked in port. Subsequently, some islands and territories were declared "offshore" or free trade and transactions are developed there as freely and without paying taxes to any State. To refer to countries High taxation otherwise use the term "onshore."
The world has reduced taxation territories, while an air of glamor and a very bad press. On the positive side we can say that evokes the international trade and finance, large fortunes, exotic locations and most exclusive resorts. At the same time and in its negative part, is associated with crime and delinquency, even though their use mainly to obey such business reasons, mainly commercial and financial and, above all, tax evasion, defined as savings or avoidance of tax, lawful conduct, or tax evasion. International crime and organized crime are frequent low tax territories. However, organized crime or whether the bank also used the corner, Internet, buses and mobile phone.
General purpose and basic concepts for the offshore investor
Selecting an offshore bank. -Types of accounts and deposits. Conclusions. -Other banking services: Credit cards. Accounts Special anonymous passbook. Loans. Auto-loan ("Back-to-back loan"). Internet-banking offshore. "Private Banking. "Banks offshore. "Parallel banking systems.
Banking: Selecting an offshore bank
A central aspect of the financial activities are outside the banking services because they are the axis and the instrument normal operation of the offshore system, and that any action to be undertaken inevitably involves opening an account.
open bank accounts abroad and fund them is perfectly legal and frequently needed for many professions and businesses. It is obligatory to return to the Treasury as is meet applicable taxes. Its use for tax evasion is prosecuted in our country, although the foreign bank is not particularly concerned about this issue.
Opening accounts: opening documentation and forms. Measures against money laundering. Application of anti-money laundering standards, professional performances. Identity verification. Factors to consider in the Client. Amounts for the opening. -Use of the account: Login funds: Wire Transfers. Money Transfer Services. Withdraw funds. Safety and Security. Risks of the use of correspondent accounts. -Rates: Current accounts. Asset management. "Offshore investments: mutual funds. Insurance annual premium and single premium. Eurobonds. Fiduciary deposits.
to open accounts abroad and many other offshore activities may use an adviser or financial intermediary (the trust, trustee, company formation agent.) For opening accounts in many countries require revealing who is the final beneficiary rule that is widespread in serious jurisdictions. What it costs a trustee or a company formation agent to open an account, you can exceed 500 euros.
If the investment is long term, before opening the account must think of every contingency, ask and ask what will happen to the deposits in case of death, inheritance procedures, change of address or change of laws tax or banking. As a security measure should be left to someone you trust (which may be the local banker or a lawyer) a sealed envelope with instructions on the offshore account and who will inherit it means the family or the client who want and not own offshore bank.
What is offshore banking?
means an activity that takes place outside the country you reside. If we look at banks, where one operates with a local bank, this can be seen as an activity onshore, however when one operates with a bank that is not their country is an offshore activity.
also an offshore bank branches can not install or physical representations in other countries outside doors that is not where it operates and was constituted (tax haven), since it is an activity offshore, it can within the terms some of their staff serve as advisers to the foreign banks, behind closed doors, but not contradict national laws of each country.
What is a tax shelter?
qualify as a tax haven is a territory or state that certain taxes are very low or nonexistent, many countries (particularly the members of OECD) have laws that make it difficult for residents to have a company (or investment ) in unpaid tax haven imposed on him or the country in which they reside.
