A bank that is located outside the country of residence of its depositors is known as an offshore bank. Typically, most offshore account holders are non-residents of the bank's jurisdiction. The popularity of offshore banking is due to the various advantages it offers in comparison with national banking, such as greater privacy, easy access, little or no taxation and protection from political, local or financial instability. While the term originated in the Channel Islands, offshore from the United Kingdom, and while historically most offshore jurisdictions are located on islands, it is now used to refer to all banks offering the above-mentioned advantages, regardless of their location. For example, banks located in Switzerland, Luxembourg and Latvia are often referred to as offshore banks.

Benefits of having an offshore bank account
The main advantages of having an offshore account, and the reasons for offshore banking's growing popularity, are:

Convenience and flexibility — the process of opening an offshore bank account is significantly faster and more convenient than when dealing with national banks. Many companies now specialise in offering a full-service package for those looking to open a bank account in a specific offshore jurisdiction.
Multiple currencies — having several accounts for different currencies allows you to diversify risk associated with your home currency and profit from exchange rate fluctuations.
Little or no taxation — some offshore banks are located in jurisdictions called tax havens, where taxes on inheritance or income are levied at a lower rate or not at all.
Greater secrecy — an alternative term for a tax haven is secrecy jurisdiction, because most offshore banks offer higher levels of secrecy than are available in other countries. This is possible thanks to legal provisions in these jurisdictions prohibiting the disclosure of a client’s personal and account information to the authorities, except in the event of a criminal complaint.
Disadvantages of having an offshore bank account
There are some disadvantages to consider before opening an offshore bank account:

Offshore banking is often associated with tax evasion, money laundering and organised crime. Therefore, tax agencies and other authorities work hard to impose strict rules and greater regulation on international finance, particularly with regard to offshore banks.
An offshore bank, depending on whether it is a private or a retail bank, may require a relatively high minimum deposit before you can open an account. In addition, some banks require you to maintain a certain minimum balance on your account at all times.
You may not be protected if there is a financial crisis or if the offshore bank defaults, which means that you may not be able to retrieve all or any of the money you have deposited. Therefore, it is crucial to carry out extensive research or to entrust a competent professional, who is familiar with the banks you are considering and the legal requirements of your chosen offshore jurisdiction, to conduct this research for you.
Blacklists of offshore jurisdictions and their impact
National and international authorities have developed several grey- and blacklists in order to tackle uncontrolled offshore banking. These lists usually include jurisdictions that refuse to co-operate on tax or other matters requiring the provision of information on their customers. For example, the EU is drafting a common blacklist of uncooperative jurisdictions, which should be finalised by September 2017. The plan is for this list to include not only the names of offshore jurisdictions and tax havens, but also sanctions and other defensive measures against these countries. Common sanctions against blacklisted jurisdictions include:

Increased disclosure requirements for individuals and companies using tax havens
Withholding taxes on transactions with tax havens
Prohibition on using interest accrued in blacklisted countries to offset tax
Revision of tax treaties
Political pressure on global corporations to refrain from investing in tax havens
Reductions in international aid
Interestingly, those who defend offshore banking tend to criticise any attempt to regulate and impose sanctions on offshore jurisdictions. They consider the process to be driven, not by security or financial concerns, but by the desire of domestic tax agencies and banks to access the funds held in offshore accounts.

In general, all jurisdictions can be divided into classic offshore, low-tax jurisdictions and prestige jurisdictions. The prestige of a jurisdiction corresponds to its rank, which is determined by considering and evaluating information from the International Sanctions List, the OECD Gray or Black List and the EU Jurisdiction White List as well as data on the development of financial markets to determine whether the jurisdiction is FATF AML is deficient and whether there are money laundering concerns. These are the basic criteria that matter in determining whether the jurisdiction is prestigious or not. It cannot be considered prestigious if it is on a financial blacklist.

Austria, France, the United Kingdom, the United States of America and Switzerland are among the top five most reputable jurisdictions for incorporating a company.

A general overview of Austria
Registering a company or start-up in this territory allows the owner(s) to participate in all projects initiated by the Austrian government. The basic company types available are LLC, ULP, PJSC, PLLC, LLP, and JSC.

Taxes: The income tax rate is 25%, with a minimum corporation tax of EUR 500, plus 20% VAT and a capital tax that varies between 0.8% and 1%. If the subsidiary is registered within the EU, the tax rate on dividend income is 0%; if not, it is 25%.

Austria has agreements with more than 90 countries that enable companies to avoid double taxation. It has no exchange control. This jurisdiction ensures the confidentiality of business data.


A general overview of France
France is a respectable jurisdiction that allows your company to offer products and services bearing the mark of a European company. The basic legal structures available are SP, GP, PJSC, PJSC, LLC, CLS and LLPE.

France offers a number of options: the ability to obtain credit from French banks, the ability to obtain a residence permit, no taxation for companies registered in the country doing business outside of France, and no exchange controls. France has agreements with more than 89 other countries that allow companies to avoid double taxation.



A general overview of the United States of America
The US offers a respectable, highly trusted jurisdiction for a company to register, allowing it to offer products and services bearing a US company's trademark. This jurisdiction does not impose tax obligations on entities designated as non-resident and also permits nominee services. There is no taxation for companies incorporated in the country that do all their business outside of the United States.

The basic legal structures available are private contractor, corporation, branch of a foreign corporation, representative office of a foreign corporation, partnership, LLC, joint venture, or LLJSC.


A general overview of Switzerland
The good reputation of this jurisdiction is based on several factors, such as strong business development, a dynamic economy and a track record of innovation. The main corporate forms available in Switzerland are LLC, ULP, JSC, Commandite Partnership and Subsidiary.

Switzerland offers a high level of confidentiality, the world's leading currency, mechanisms to avoid double taxation, an appropriate tax system with tax rates depending on residence, income level and legal form of the company, tax optimization opportunities and the possibility

A general overview of the United Kingdom
The UK is considered a respectable jurisdiction due to its high level of legal protection, a simple and transparent tax system, the ability to charge VAT and the availability of nominee services.

The basic company types available in the UK are PC, limited liability company by guarantee, ULC and LLC. Again, there are no tax obligations for UK registered companies operating exclusively outside the country. Corporate tax rates depend on profit (between 20% and 24%). The UK has agreements with more than 100 countries that allow companies to avoid double taxation.

With the right documentation and initial expenses, it is possible for a foreign citizen to open a bank account in Bahrain. This international account and investment opportunity offers several advantages based on economic regulations and tax structures. Interest rates, tax laws and fees vary depending on the country in which you invest; Careful research and strategic financial actions could result in significant portfolio growth.

If one is considering opening a bank account in Bahrain, one must enlist the help of international experts to guide them through the process.

Legal structures in Bahrain
Each international jurisdiction adheres to different legal structures for taxation and banking. Confidus Solutions helps you understand the nuances of each country's legal structure. In order to do business in Bahrain, it is crucial that you have a thorough understanding of the financial and legal ramifications.

Initial investments
The vast majority of bank accounts in Bahrain require an initial financial outlay to secure the account opening. This value differs from bank to bank and also depends on variable exchange rates. An international financial expert will help navigate these conversions, as well as the various fees and minimums associated with maintaining a bank account. Make sure you understand the interest and growth rates associated with each prospective international bank account so you can maximize your returns while minimizing risk.

Tax structures in Bahrain
To get the best results and avoid bureaucratic and legal pitfalls, enlist the support of an expert in international finance and economics. This initial investment in proper processes and research will help avoid a litany of long-term costs and fees related to unforeseen errors and legal errors. Language skills, financial know-how and bureaucratic experience ensure that your account opening is processed smoothly and without unintended consequences.

The Italian government introduced Value Added Tax (also known as Value Added Tax) back in 1972, which is called “Imposta sul Valore Aggiunto (IVA)” in Italian. Italian officials have also decided to introduce the VAT directives and other initiatives of the European Union, of which Italy is one of the founding members.

Italian VAT regulations can be found in VAT laws and other legal acts, which are constantly backed up by precedents. The local tax office also develops and implements administrative doctrines containing various general guidelines for a day-to-day VAT application. The VAT system is overseen by the Italian Ministry of Finance.

According to the European Union's common VAT regulation, all companies trading in the territory of Italy and supplying taxable goods or services must comply with local tax laws. The latter include the obligation to apply for the local VAT number, to comply with all requirements of Italian VAT regulations, and to regularly fill out and submit VAT reports and other declarations.

Cases where a company needs to register Italian VAT
If a foreign, non-resident company sells goods or provides services, in this case it may face the legal obligation to apply to the tax office like a local taxpayer and obtain an Italian VAT number. A company may be required to acquire an Italian VAT number under the following circumstances:

Importing goods into Italy, but if the customer has an Italian VAT number – the supplier must not estimate local VAT;
Buying and trading goods in the territory of Italy, provided that the supplier and customers are non-Italian companies with a local VAT number;
Provision or receipt of intra-community deliveries or receipt of goods as acquisition from other member states of the European Union;
The sale of goods to individual consumers via the internet is subject to the local distance selling registration threshold;
Storage of goods in a consignment warehouse on the territory of Italy for the purpose of delivery in Italy or alternatively in the EU;
Collection of entrance and entry fees to live events or exhibitions on Italian territory;
E-commerce transactions where the goods are sold online to Italian consumers.
As of 2010, there are almost no situations where registration of a non-resident VAT number is required to provide services on the territory of Italy. Instead, the Italian customer records the transaction using the reverse charge method.

Remember that according to the MOSS system, providers of digital, broadcasting or telecommunications services aimed directly at Italian consumers only have to apply for a VAT number in one of the member states of the European Union in order to make a single declaration for all 28 to submit to Member States.

Basic information on Italian VAT
Below you will find basic information about Italian VAT.

Normal VAT rate: 22%
Reduced VAT rate: 4%, 10%
Distance selling registration threshold: €35,000
EU VAT number format: IT99999999999