Benefits of offshore banking: why you need an offshore bank account
Considered for decades to be reserved for financial experts, investors, multinationals or High-Net-Worth Individuals, offshore banking continues to gain in popularity. Today, the opportunity to bank internationally is accessible to individuals looking to take advantage of the benefits of offshore banking. You are considering opening an offshore bank account. This guide will take you through the benefits that you can avail by banking in a foreign country.
What you need to know about offshore banking
Offshore banking is a way to manage your money with convenience while you are abroad. It is not drastically different from a local bank account opened in your country of residence. The major variances comes in the country where the bank is located, as well as the types of banking services offered in that country.
The reputation of the jurisdiction of the offshore bank also plays a key role in attracting investors and High-Net-Worth Individuals. Economically and politically stable, Mauritius – Africa’s leading jurisdiction – also attracts international banks that offers premium services to global investors.
It is crucial to note that offshore banking is legal. It is easy to be swindled or misinformed by offshore banking uses and practices. Illegal practices lead to severe penal sentences and can even result in jail. For transparency, offshore banks commonly request the sources of the income when funds are deposited on the account.
The benefits of offshore banking
Offshore banking offers a plethora of benefits. Many offshore bank accounts offer the possibility of having a multi-currency account. Offshore banks in Mauritius proposes multi-currency account as a way to decrease the impact of foreign exchange (Forex) variations, and prevents the loss of money through currency conversion fees. Some offshore banks provide services and products that may not be accessible through your domestic bank, including the setting up of automatic bill payment in more than one currency, fixing currency prices in advance, special investment openings, discounted international payments and more.
Offshore banking is also attributed with protection of your assets, conducting international transactions with ease, wealth management and privacy. In some countries, the Consumer Protection Policy protects your deposited wealth in case a bank goes bankrupt or in case of a financial crisis. Privacy is a guaranteed advantage of offshore banking. In Mauritius, your personal banking information and banking transactions stay private and confidential.
One of the core benefits of offshore banking are tax incentives. Mauritius has a unique tax rate of 15% for both corporate and individual income. However, Authorised Companies can benefit from a Foreign Tax Credit. Click here to know more about Authorised Companies and how to set up your corporate structure in Mauritius. Other incentives include no Foreign Exchange Control, no Withholding Tax, no Capital Gains Tax and a wide-ranging network of Double Taxation Agreements.
Offshore banks in Mauritius are regulated by international standards with stable credit ratings, which makes it one of the best African countries for offshore banking. Additionally, offshore banking in Mauritius among the few in Africa that promotes the International Bank Account Number (IBAN) system. IBAN makes it simpler for individuals who have similar accounts to transact with each other more effectively.
Other benefits of some offshore banks include:
How Sunibel can help you
Sunibel Corporate Services accompany you in all the processes related to offshore banking. We help you to open an offshore bank account with the bank that best fits your objectives. We offer tailored advisory, corporate and business services, and are here to help you find solutions that will enable you to optimise your costs and benefit fully from the advantages that Mauritius offers.
For more information about the benefits of offshore, or for opening an offshore bank account, do not hesitate to contact us.
This article is provided for information purposes only. It is not intended to provide, and should not be used for, tax or legal advice. We may put you in contact with tax and legal advisers in this regard.
Although all information and opinions contained herein have been compiled from sources believed to be reliable and trustworthy, no representation or warranty, express or implied, is made as to their accuracy or completeness, and, to the extent permitted by law, Sunibel Corporate Services Ltd, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in the article or for any decision based on it. You should not act upon the information contained in this publication without obtaining specific professional advice.
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