International Banks: Offshore Banking Hubs
International banking is mostly offered by small wealthy countries. Some of the popular hubs are Switzerland, Hong Kong, Panama, the US Virgin Islands, Cayman Islands, Aruba, Samoa, Belize and San Marino. They have no residency regulations for their clients. These are also called tax havens. Around 15% of the countries in the world operate as tax havens as estimated by the US National Bureau of Economic Research. These countries offer a variety of account types to accountholders.
International Banks: General Advantages of Banking Offshore
Holding accounts in international banks proves extremely beneficial for wealthy individuals and companies. The biggest benefit includes low or no taxation. Accountholders are paid interest without taxes being deducted from their accounts. International banking offers more privacy as the private financial information of the accountholders is not disclosed.