The economic and political situation in the world is increasing the popularity of opening offshore bank accounts. But where is the best place to keep your money during this turbulent time?
In this article, you will learn the best countries for offshore banking, offshore account features, and other useful information that will help you keep your savings.
What is an Offshore Bank Account for?
There are many reasons why investors and wealthy individuals open offshore accounts. Here are the most popular ones:
- asset protection
- a high percentage of deposits
- high level of confidentiality.
The search for the best offshore banking jurisdiction begins with monitoring the legislative, tax, and banking systems, as well as financial institutions and their internal policies. The choice of a particular country depends on many factors, including the level of protection, access to tax incentives, and the reputation of banks.
What Are the Requirements for Opening an Account by a Non-resident?
There are mandatory requirements for offshore account opening provided not only by the country of the financial institution location but also by the client’s place of residence and tax residence.
Requirements and regulations vary between jurisdictions and banks. For example, we can cite the following requirements:
- reporting for residents with offshore accounts
- by the number of transactions per tax period, which directly affects taxes
- on the taxes themselves, the payment of which is mandatory for residents or domiciled persons
- on other administrative issues, information about which should be clarified at the stage of choosing a servicing bank for a non-resident individual or legal entity.
In Which Country Is It Easiest to Open a Bank Account?
The question is ambiguous and has multiple answers for different categories of questioners, including their purpose and country of residence.
It is much easier for European companies and investors to open a bank account in their own country or neighboring jurisdictions, such as EU member states. There will also be no problems with offshore territories and countries where Nevis, Belize, Saint Lucia, and the Cayman Islands remain a priority. But you should definitely take into account tax liabilities and risks that may differ for each specific country or business area.
But for US residents, the issue of banking services abroad is fraught with a number of difficulties, including:
- FATCA is required by many financial institutions to report Americans’ accounts to the IRS.
- Tax liability, as the UAS has its own laws on this issue. Regardless of the place of profit formation or storage of assets, taxes must be paid in the homeland, that is, in the United States.
But citizens of the United States found a way out within their own jurisdiction – opening an account in Puerto Rico, where the FATCA law does not apply. You can also use a more complex option – an offshore company + a bank account in another country or trust structures.
What is the Best Country to Open an Offshore Account?
Where is the best place to open a bank account to keep your assets safe and protected? The key point here is reliability and safety, which directly depends on several factors at once.
Questions, the answers to which will allow a more accurate analysis of the bank and its level of reliability for storing money:
- Who is the client of the offshore bank and where does he or she come from? This point determines the relationship of the financial institution to the applicant, as well as the level of risk for sanctions and blocking of accounts.
- What laws regulate the financial activities of the bank? Local regulator laws and international regulations may affect customer account security, confidentiality, and secrecy.
- Why is an account required and what is the client’s goal? If this is an account for short-term settlements while traveling, then in principle there will be no problems. But for those who are looking for a safe haven to protect their assets from foreign creditors and troubled relatives, choosing the best country to open an offshore account may be the only solution to the problem.
In addition, the choice of the best country for opening an account will depend on the following client needs:
- Best country for tax benefits ─ here it is necessary to determine who will open the account and what tax residency status the client has. As a rule, an offshore account is not taxed in the country where the bank is located, if it is created for a non-resident of this state. Tax liabilities arise at the place of residence of the applicant or the country of registration/management of the company.
- Best country for asset protection ─ in which countries will offshore banks help protect assets from foreign courts, creditors, and relatives? Nevis is the best country for asset protection, where you can form an international company, open a bank account in an offshore bank, or place your money and business in trust. Belize is also determined to protect the interests of its customers and business founders, does not disclose information to third parties without good reason, and strives to create favorable conditions for non-residents both in banking and in doing business.
How to Choose and Open an Offshore Bank Account?
How to set up an offshore account as quickly and safely as possible? The best option would be to turn to experienced professionals such as International Wealth experts. Using this offer, you will be able to receive the following services of the highest level:
An individual approach and the study of your issue with not a template but through a thorough analysis of all interrelated factors.
Selection of a bank and sending a request to open an offshore account for personal purposes or corporate needs to several financial institutions at once.
Preparation of a questionnaire, application, and remote opening of an account without the participation of a client (if applicable).