The fall in oil prices in early April 2020, against the backdrop of declining demand for this raw material from the world economy, brought down the national currencies of many black gold exporting countries. In addition, the IMF has declared the actual beginning of a worldwide recession.
According to economists of Europe’s leading companies, the fall in GDP in 2020 will be from 0.8 to 3%.
In this regard, it is becoming increasingly important to consider the banking systems of other countries for storing and protecting the savings of citizens and companies in financial assets and more stable currencies of countries that do not suffer from energy prices.
Access to secure banks
If you have never opened a bank account abroad before, it may be difficult to believe that offshore banks are safer than those located in your country.
This is because you associate domestic banks with the concept of the Motherland and something close to you. However, this is almost never confirmed in practice. On the contrary, European banks are most susceptible to erroneous blocking and non-acceptance debits of customer funds by the fiscal authorities, in contrast to foreign banks, where European banking legislation simply does not operate in a non-acceptance manner.
However, such misconceptions are not unique to Europe. For example, until the last financial crisis in 2008, most Americans believed that US banks were the best and most reliable in the world. But then the world learned how their financial institutions put depositors and the entire country at serious financial risk.
Reducing the political and economic risk
It seems that there is more political and economic uncertainty today than at any time in the past 50 years. As a result, we are seeing a lot of political, social, and economic unrest around the world.
Whether you are in the United States, Europe, Russia, South Africa, or China, you can find the side effects of growing unrest everywhere. With major elections looming, economic instability, and an ongoing pandemic, social unrest is only growing.
So how can you protect your money from growing political, economic, and social uncertainty? This can be done by wisely choosing a country and a foreign bank to store your assets, as well as diversifying them in different jurisdictions.
One of the main advantages of offshore bank accounts is that they allow you to transfer money to another economic and political system. In addition to the many other financial advantages described below, having a foreign bank account allows you to significantly minimize risks and diversify them outside of your country.
Reasonable tax cuts
Tax cuts are one of the major motivations when people rebuild their lives abroad and start banking abroad.
And it makes sense. Especially if you pay more than 50% of your business profits to the budget of a country with hidden public spending, a corrupt government, and where you barely spend time without getting any benefit from the taxes paid.
But when it comes to optimizing the tax burden, one foreign account will not be enough. Yes, having an offshore bank account, receiving interest, and in some cases receiving income to an offshore account can help you reduce taxes. However, there are other important elements of this strategy that need to be taken into account.