What exactly is legal offshore banking?
At its most basic, it means that you are banking and taking care of your financial affairs in a country other than the one that you claim citizenship or live in. Many people have made the decision to diversify or relocate their affairs to another country and open an offshore account. One of the preferred places for people to do their offshore banking is Belize.
Why do people bank offshore in Belize?
The reason for this is that offshore banking often brings tax benefits. One of the best examples of this is that any interest you earn on your investments and offshore accounts are paid without taxes being deducted. It may even be possible to reduce tax liability in your own country by transferring investments and savings to an offshore account. It is also interesting to note that Belize is the only country in Central America where English is in fact the official language. As you can understand, this makes it much easier to communicate with your offshore bank and means that you should not have a problem getting any questions answered.
Would I have to travel to Belize often?
You do not have to physically visit your offshore bank. You can bank anywhere in the world as long as you have an internet connection. You can even bank by phone or by mail. The reason that people prefer Belize is because it is relatively close to the United States, in fact it is located only a little over two hours from Belize City or Cancun. This makes it much easier to plan a trip to your Belize bank and leaves people feeling more secure. There is no need to worry about not being able to take money out because you get an ATM card that provides access to your account in Belize throughout the world.
So is this legal to do?
It is in fact absolutely legal. Both companies and individuals from around the world have legally and routinely used offshore banking. Because international trade is encouraged by many countries, the only limit that one may encounter is when a country limits a person having bank accounts in a different country.
What about privacy?
Belize is independent, has very strict privacy laws. This means that information that is provided to Belize stays private. With so many clear benefits, it should come as no surprise that Belize is the preferred location for offshore banking for so many. It has been so for years, and expected to be so for many more.