You might want a Swiss account outside of Switzerland if:
- Grow your company;
- Minimise your taxation;
- Make running a business easier;
- Protection of assets;
- Estate planning;
- Privacy in money matters;
- Investing with no tax.
An offshore account is a legal way for people who do business internationally or online and make a lot of money to ease their tax burden. Keep in mind that the Swiss government takes 35% of the interest earned on accounts held by people who don't live in Switzerland.
Also, people in Switzerland no longer use checks. This is a bother if you usually work with them.
Many people think that because they are not banking in their home country, a Swiss bank account is somehow sketchy or dangerous. It's not true. There have been some Swiss banks for more than a hundred years. They are just like the bank account you have at home, but in a different country.
You can put money from your offshore company into it, transfer money to other accounts, like a local bank account you use to pay bills and daily expenses, or pay for any expenses you still have in your home country.
Because of the World Wide Web, it is now even easier to trade with other countries. Many businessmen have Swiss bank accounts so they can manage their money, keep their privacy, improve their financial security, and save money on taxes.
Offshore savings accounts offer better interest rates than regular savings accounts and work the same way. You can put money in and take money out, and interest is added to your account twice a year or more often, depending on your contract, based on how much money is in your account at the end of each day.
One of the most common myths is that offshore savings accounts and offshore banking in general can legally stop assets from being taxed on interest income.
Some, for sure, have low or no tax rates. But this exception is usually only for people whose accounts meet some pretty complicated requirements.
The "no-taxes" idea is wrong because most countries' personal income taxes don't make a difference between interest earned in local banks and interest earned abroad. Instead, they add clauses to make sure taxes are paid.
For example, all people and businesses that have to pay US income tax must, under penalty of perjury, report any offshore bank accounts they have and pay the taxes on them.
Some offshore banks tell other tax authorities about their clients' income, but most of them don't. This doesn't make it legal for the income to be hidden or for the tax on it to be avoided.
Offshore savings accounts are not a way to avoid paying taxes. Instead, they are for investors who want to take advantage of the foreign exchange allowance by putting some of their money in a safe offshore location.
Offshore savings accounts don't come with any guarantees, but your money is safe and so is the published rate of interest on your money, just like with a regular savings account in your home country.
These accounts fall into the following groups:
No-Notice Accounts are ones where you don't have to tell anyone you want to take money out. Some account features are:
- Minimum balance requirements;
- The least amount you can spend;
- Limits on how many times you can take money out;
- Depending on which account you choose, rate guarantees and bonuses may be different.
Accounts that pay interest every month are called "monthly income accounts." They may be called "no notice" accounts if they don't need notice, or "notice" accounts if you have to give notice to get your money out without a fee. Accounts have the same kinds of features as No Notice Accounts.
Interest-Paying Current: These are accounts that let you use a chequebook or cash card to take money out at any time without giving notice. Due to the different types of accounts, the features they offer, such as debit cards, check guarantee cards, overdrafts, etc., are also different. Accounts have the same kinds of features as No Notice Accounts.
Notice accounts are those where you have to let the bank know ahead of time if you want to take money out or you will lose interest or be charged a fee. How much notice you have to give depends on the account you choose. The features of the account are the same as before, and for bonds, there will be a maturity date that shows when the account term ends.
