Monday, March 16, 2009

Introduction to Offshore Banking

For those of you interested in offshore banking, but like me have no idea where to start reading, or how to filter out the crap on the web I've found This free report. entitled "The 10 Things You Really Need To Know Before Opening An Offshore Bank Account".



The report doesn't go in to too many specifics, but it does make an excellent starting point for those considering opening a second bank account on foreign soil.

Here's an excerpt:

The Most Important Benefits of an Offshore Account

WG Hill, the author of the underground classic PT, is quoted as saying: Get your money out of country, before your country gets the money out of you! And this strikes at the core of what offshore banking is about.

When you bank in your own country, your funds are at risk. You must know this. Even worse, your funds are not secure. Say you owe a tax bill which you are contesting. Now, in most of the modern Western democracies, it's a simple matter for the government to seize the funds from your domestic account. One day you have $10,000 in there - and the next day you don't.

Secondly, most Western nations now get the banks to do their tax collecting for them. This is done by the practice of automatic withholding of tax on any interest earned. In this way your domestic banks are tax agents and put the government's interests above your own - the client.

Opening an offshore bank account puts your funds out of harm's way. If you had $10,000 in an offshore account, your own government could not siphon it off. And if you are banking in a place where there is no tax charged on interest, then your funds are growing quicker - without any withholding taxes being applied.

Thirdly, an offshore bank account gives you more financial privacy and flexibility - something in great demand in this increasingly regulated world.

4 comments:

Lemonkult said...

Hey man, love the blog. I'm in Australia right now, but really interested in moving to BA eventually (about to head to China).

The poker angle is something I'm also really interested in. I play in casinos, but I haven't been able to translate wins there to online play yet.

I'll be reading the blog and checking out some older posts. Cheers!

Adam - lemonkid at gmail.com

Perpetual_Traveller said...

Hi Adam, thanks.

Feel free to email about BA/poker online (email addy in my profile).

Enjoy China.

Coolio Karlio said...

Hi,

I'm looking to travel in early to mid 2011 and was wondering if you highlight amounts needed, best places to visit, places to avoid etc etc.

Perpetual_Traveller said...

Karlio, it's hard to say $-wise, but I wouldn't consider travelling without a job to go to on less than 6 months living expenses ($10k USD depending on where you chose to spend your time).

Economically it makes far more sense to spend your time in Asia, Latin America, Eastern Europe for e.g, where the cost of living is significantly lower than USA, Western Europe etc.