Five Straight Steps To Opening An Offshore Bank Account
By Rhiannon Williamson, Thu Dec 8th
Despite what you may have read or heard, anyone is free to openan offshore bank account nowadays! In fact, banking offshore hasbeen used successfully for tax reduction and asset protection byboth individuals and worldwide organisations for decades. And opening an offshore bank account in this day and agecouldn’t be simpler either! Here are five straightforward stepsto take towards opening an offshore bank account. Step One – Understand The Advantages Of Banking Offshore
There is no point in opening a bank account offshore if it isgoing to be of no use to you! So you need to understand some ofthe general advantages of banking offshore. Depending on an individual account holder’s personalcircumstances it’s possible to reduce tax liability, increasewealth potential and maximise privacy with the use of anoffshore bank account. Further advantages for an expatriate or internationally focusedindividual are the flexibility, ease of access and global reachthat an offshore bank account may provide. Other general benefits may include asset protection, estateplanning, better interest rates and the chance to exploit activebusiness interests overseas. At this point it’s essential to point out that each individual’scircumstances are unique and a person should seek personalisedprofessional advice before venturing into the offshore world.This article does not constitute direct personal advice. Step Two – Pick Your Jurisdiction Carefully There are so many offshore banking providers offering a widevariety of account type and they are located in low to no taxjurisdictions worldwide so how do you choose which country tobank in? Again, depending on an account holder’s personalcircumstances certain offshore jurisdictions will presentthemselves as being more favourable. Jurisdictions range in quality from highly regulated,politically and economically stable centres like the Isle ofMan, Jersey and Guernsey to high risk jurisdictions that fewwould recommend! Remember that an offshore centre that is suitable for anAmerican expatriate might not be so suitable for an Englishinternational investor! Consider your circumstances, yourcountry of residence, country of domicile and any reportingrestrictions placed upon you. Further examine the reportingrequirements of any jurisdiction that you’re interested in. Step Three – Select Your Offshore Banking Provider Do your due diligence carefully and find out who’s the financialsecurity behind a particular
bank. Research the bank’s historyin terms of its stability and security. This research is mainlyapplicable to those thinking considering banking with a lesserknown offshore provider. Clearly if you’re thinking about opening an offshore bankaccount with HSBC then your research needn’t necessarily be sointense! You need to make sure that you’re comfortable with your chosenbank’s attitude towards you, its customer, and if you’reconsidering online banking be sure that your connection to thebank will be secure. Much of this essential information can be found online. Step Four – Choose The Right Bank Account With so many providers vying for customer attention there aremore account types on offer now than at any other time before.Each account structure claims to offer something the othersdon’t, but remember that the more bells and whistles you add toan account structure, the more expensive the charges for runningand marinating such a structure will be! And who will bear thebrunt of these costs? Most likely you - the customer! So, think carefully about exactly why it is you need an offshorebank account and what are the features of that account that areessential to you. Do not be tempted to add to this list anyunnecessary complexity. Stay in touch with your immediate money management requirements;do not be tempted to deviate! Then work through what’s on offer and pick the account type thatbest suits your needs. Step Five – Opening The Bank Account Nowadays you neither have to visit the offshore jurisdiction inwhich you wish to bank, nor do you have to travel to the countryfor the continuance of your banking activity and accountmaintenance. Depending on the jurisdiction you favour, the provider andaccount type you have selected you will be required to submitcertain paperwork, forms of verified ID and deposit funds. The majority of legitimate offshore banking organisations willalso allow customers to conduct all ongoing banking activity viathe internet, e-mail, post, fax or telephone. With many providers now offering full credit and debit cardservices as well you will also have easy and direct access toyour funds at all times. About the author:Rhiannon Williamson publishes ShelterOffshore.comfor offshore & expatriate investors Readers of ShelterOffshorebenefit from the site’s alliance with deVere and Partnersoffshore financial advisory. Visit the deVere and Partners page to find out more |
