Invest your money with Offshore banking
In order to minimise the level of taxation on savings, it is possible to participate in offshore banking. An offshore bank is located outside the country of residence of the depositor, usually in landlocked countries (such as Switzerland and Luxembourg), or remote islands (such as the Seychelles and Montserrat). Essentially, they are found in any country with a low tax jurisdiction.
Due to the high level of privacy offered by an offshore bank, it is commonly associated as a form of banking used for organised crime, tax evasion and money laundering. Although the regulation of offshore banking is increasing, it is still relatively low, which is why it lends itself to such criminal activities. However, legally, assets in an offshore banking account still remain subject to income tax, though it is up to the user to declare their savings - it is not the legal obligation of the offshore bank to do this. Failure to declare these assets will result in the appropriate penalty for tax evasion in the country of residence.
It is common that offshore banks also offer a high rate interest on assets as they receive little government intervention, and have few overheads to pay. They also offer banking services which may not be available domestically, such as anonymous bank accounts and investment opportunities.
It must be remembered that offshore banks are often in remote locations, so physical access and access to information can be very difficult. However, with ever-increasing globalization, this is becoming less of a problem, as accounts can be set up easily online or over the phone.Next Article: Online Banking