No matter what you may have read or heard, anyone is free to open an offshore bank account today! In fact, overseas banking has been successfully used for tax evasion and asset protection by both individuals and organizations around the world for decades.
And opening an offshore bank account in this day and age couldn’t be simpler! Here are five straightforward steps to take to open an offshore bank account.
Step One – Understand the Advantages of Offshore Banking
There’s no point in opening a bank account on the beach if it doesn’t work for you! That’s why you need to understand some of the general advantages of offshore banking.
Being in an account owner’s own situation it is possible to reduce tax liability, increase wealth potential and increase the privacy of using an offshore bank account.
Additional advantages for the expatriate or internationally focused individual are the flexibility, ease of access and access to the world that can be provided with an offshore bank account.
Other general benefits may include property protection, land planning, better interest payments and the opportunity to take advantage of active business interests abroad.
At this point it is important to point out that each individual’s circumstances are unique and one should seek oneself for professional advice before traveling outside the world. This article does not contain direct personal advice.
Step Two – Choose Your Jurisdiction Carefully
There are many offshore banking providers that offer a wide variety of account types and they are located at the bottom with no tax jurisdictions around the world so how do you choose which country to bank in? Again, relying on an account holder’s own circumstances some coastal jurisdictions will present themselves as very superior.
Jurisdictions range in quality from highly regulated, newspaper and economically stable such as the Isle of Man, Jersey and Guernsey to high risk jurisdictions that few would recommend!
Keep in mind that an offshore center suitable for an American expatriate may be less suitable for an English international investor! Consider your circumstances, your country of residence, country of domicile and any reporting restrictions placed on you. Further review the reporting requirements in any jurisdiction you prefer.
Step Three – Choose Your Offshore Banking provider
Do your due diligence and find out who is the financial security behind a particular bank. Research the history of the bank regarding its strength and reliability. This research is especially applicable to those considering banking with a lesser known overseas carrier.
Obviously if you’re thinking about opening an HSBC offshore bank account then your research doesn’t have to be too serious!
You need to make sure that you are comfortable with the behavior of your chosen bank towards you, its customer, and if you are considering online banking make sure that your bank connection will be secure.
Most of the important information can be found online.
Step Four – Choose the Right Bank Account
With most providers seeking for customer attention there are more account types on offer now than at any other time in the past. Each account structure claims to offer something that others do not, but keep in mind that the more bells and whistles you add to an account structure, the more expensive the charge for running and marinating the as a structure! And who will suffer the brunt of these costs? Most likely you – the customer!
So, think carefully about exactly why you need an offshore bank account and what features of that account are important to you. Don’t be tempted to add to the list any unnecessary complexity.
Keep in touch with your immediate money management needs; do not be tempted to deviate!
Then do what is offered and choose the type of account that best suits your needs.
Step Five – Opening a Bank Account
Nowadays you don’t have to visit the overseas jurisdiction where you want to bank, or you also have to travel the country for continuing your banking activity and maintaining the account.
Depending on the jurisdiction you want, the provider and account type you choose you will need to submit some paperwork, verified ID form and deposit funds.
Most legitimate offshore banking organizations will also allow customers to conduct all ongoing banking activity via the internet, e-mail, post, fax or telephone.
With many providers now offering full credit and debit card services as well you have quick and direct access to your funds at all times.