Offshore Tax Benefits
One of the advantages of banking and investing offshore is the potential tax benefit. When you move abroad, your tax situation may change. You may be able to benefit from this by paying less tax on your income from savings and investments.
- No tax deducted on interest earned. Interest on our offshore accounts is paid without the deduction of tax†
- Offshore income may not be subject to tax. Depending where you live, income on an offshore bank account or investments may not be subject to tax in your country of residence, if that money is not remitted into your country of residence
- No inheritance tax, capital gains tax or death duties. Jurisdictions such as the Isle of Man and Jersey, Channel Islands have no inheritance, capital gains taxes or death duties (probate may be required in certain circumstances)
Your tax situation and potential benefits of placing your money offshore will depend on your personal circumstances. To take full advantage of your situation, it may be advisable to start putting your money into offshore savings and investments well before you leave your home country.
Our International Wealth Managers may be able to help you structure your savings and investments for tax-efficiency - before you leave your home country, after you arrive in your new country and again when you move on. However, we strongly recommend that you arrange independent tax advice in both your home and your host country.
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European Savings Directive: information for EU residents
†All interest on HSBC Bank International's offshore accounts is currently paid gross. However, if you are residing in the EU, credit interest may be subject to a retention tax under the European Savings Directive. As an alternative, you can opt to have your account details reported ultimately to your local tax authority. Learn more about the European Savings Directive
As with all financial planning your tax situation will depend on your personal circumstances and you may wish to refer any planning to your accountant or professional tax adviser.
