An offshore bank account is essentially a bank account under your name but located in a different jurisdiction to which you are resident in. This arrangement presents numerous advantages to the accountholder and is one of the most easily accessible mechanisms available for legal tax avoidance and protection of your assets.
Depending on where you decide to open an offshore account, you can take advantage of various concessions and privileges that will help you to achieve financial independence and sustainability faster. An offshore bank account also increases your financial freedom, allowing you to move funds about freely without restrictions that may apply to you in your home country or to individuals domiciled in the jurisdiction of your offshore account.
Basically, offshore banking is just like regular banking but with a different, more flexible set of rules.
Where to Offshore
Deciding where to open an offshore account, while fundamentally simple, can become a little complicated because of the vast amount of options available. The best locations to select are also jurisdictions that are tax havens. Even better if the said jurisdiction allows you to obtain citizenship in that country through a citizenship by investment programme.
Just like an offshore account can increase your financial freedom, a second passport from a reputed country that offers a citizenship by investment programme can increase your physical freedom of movement, globally.
Many Caribbean countries such as Grenada, St. Lucia, St. Kitts & Nevis, Dominica and Antigua & Barbuda offer reputed citizenship by investment programmes. The passports of these countries also provide huge recognition and visa free travel privileges globally. Even EU countries like Cyprus and Portugal offer a route to citizenship by investment, but these are naturally more expensive.
All the countries previously mentioned are excellent choices for offshore banking and tax haven operations. See our article about offshore tax havens here.
Benefits of Offshore Banking
- Financial Freedom
- Legal Tax Avoidance
- Specialist Financial Services
- Protection of Assets
- Circumventing Capital Controls
You’re free to move your funds around as you wish, with no restrictions.
Enjoy enhanced levels of privacy with an offshore bank account. Privacy is increasingly important as you deal with growing investments.
An offshore bank account provides you with many advantageous arrangements to legally reduce your tax bill, paying only what you need to.
Offshore financial centres offer top-notch specialized financial and investment services. Because the big money moves through these locations, they attract the best talent and skills in the industry.
Especially if you live in an unstable jurisdiction, an offshore account can help protect your assets from illegal and or unethical seizure by governments and or other 3rd parties. Offshore banks provide the highest levels of security and secrecy for your assets.
Many jurisdictions implement unfair capital control mechanisms, which make it difficult to do business, particularly international business. An offshore bank account can help you to transact more freely and without hindrance.
Setting Up an Offshore Account
Setting up an offshore account is no more complicated than setting up an ordinary bank account. You will simply have to find a suitable bank and provide the necessary documentation required to prove your identity and source of income, in accordance with global and local regulations.
You can also hire the services of professionals in the field, such as ourselves, to help you with the setting up of your account. If you’re interested in an offshore bank account speak with one of our experts.
The IBC – Taking it a Step Further
An IBC or an international business company is a legal entity that you can set up in an offshore banking jurisdiction to function as a separate legal entity from your own person. This will add a further layer of protection and privacy to your assets and business interests.
These structures allow you legally separate your business and investment activities from your own individual activities. Your IBC will be able to open offshore bank accounts and conduct business, which will remain legally separate from your own dealings. They also provide many legal advantages and various types of IBCs are available depending on jurisdiction.
Ultimately, even a personal offshore bank account can offer major benefits in terms of freedom and security for your assets. Consider opening one today. Speak to one of our experts to discuss your options.