Do you want to lower your taxes? Keep your assets confidential? Then find out why offshore banking is what you are looking for.
Offshore banking means having a bank account in a country where you are not a resident. Normally this would be in a tax haven (a country that has low taxes or no taxation). Because of the word “offshore" you would think that only remote islands are offering this type of banking. In reality, even the USA and Canada can be offshore tax havens for you depending on your country of residence and nationality.
So now that you know what it is...how do you get started?
Action Steps
The best contacts and resources to help you get it done
Decide which offshore banking services you need
Make a list of banking services you need. Then check carefully the background of the banks in the various offshore banking havens. Take into consideration the distance from your country of residence, if you need to visit your bank frequently. To keep your account confidential, it may be wise to travel indirectly to your chosen tax haven.
I recommend: you see this list of
offshore banking tax havens
What country should you choose to bank offshore
Choose a bank. Offshore banking can be found all around the world. Maybe you will find a bank in country where you would like to vacation. The Caribbean Islands have many offshore banks. Asian countries such as Hong Kong and Singapore have taxation based on territoriality only taxing persons and corporations on business actually done in the country. Both are major financial centers with world class business facilities.
I recommend: that you read about some
tax havens.
Apply for an Offshore Bank Account
Apply for an account. Most offshore banks have web sites where you can see the services they provide. Look for a downloadable application form. Read it carefully and check what documents need to be submitted with your application. Some documents may need to be notarized. Some offshore banks are stricter in compliance of KYC or Know Your Customer regulations and may require more documentation than others. Other banks may want you to appear in person to open the account.
I recommend: that you find out what KYC is to fully understand what the banks require.
Tips & Tactics
Helpful advice for making the most of this Guide
- If you live in a politically or financially unstable country, banking offshore will allow you to keep your hard-earned money in a safe place.
- One way to lower your taxes is re-invoicing using an offshore corporation.
- Some of the other advantages of offshore banking are:
Low taxes or no taxes at all. Avoid tax rate increases in your home country.
- Higher interest rates are often available due to non-existent corporate taxes.
- Possibility of investments that may not be available in your home country.
- Anonymous accounts and strict privacy and bank secrecy laws will keep your banking confidential. Increase the level of protection by having an offshore corporation.
- Asset protection.
- WARNING: Citizens and residents of the USA are allowed to keep funds offshore but have the obligation to declare them in their tax returns. Failure to do so may have legal implications causing you to pay fines. This may apply to other countries. Check with your tax attorney.
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