Factors to Consider When Choosing Your Offshore Bank Account

Are you looking to open an offshore bank account either for personal or professional purposes? There are a lot of factors that go into that decision. It depends on your financial goals, and of course, your circumstances. With a wealth of experience in the offshore realm, both in the UAE and other reputable jurisdictions around the world here’s what we recommend you should consider when evaluating what’s the best multi-currency offshore bank account for you.

 

 

First, what are the benefits of offshore accounts?

If you are travelling to multiple locations around the world, an offshore bank account allows you the flexibility of having all your money in a single bank account abroad without having to navigate numerous foreign banking systems with varying residency requirements. If you don't have residency, you can find it difficult to open a bank account and have a debit card, credit card or investment products in another country. It also grants you stability if you are from a country prone to political and economic fluctuations. An additional reason for you to have an offshore bank account is that you can hold a balance in multiple currencies or hold your assets overseas in a reputable legal tender. Many accounts are often in United States dollars. These are just some of the advantages you’ll find in having a personal or corporate bank account in another country.

 

The legality of offshore bank accounts 

When it comes to anything offshore, one of the inevitable questions is whether they are legal. Like we said when discussing offshore businesses, it’s legal as long as you declare it. The key to offshore banking is that you cannot hide it. You will have to make sure you are fully compliant with your home country’s tax regulation in order to not get in trouble with the tax authorities. Corporations often choose to go offshore while having their main revenue centres elsewhere. With offshore accounts, it's possible to do so as well but it's important you declare them. 

 

The best criteria to create offshore bank accounts

Now that we’ve gone over some particulars concerning offshore bank accounts, what are the factors to consider? Here’s our list:

 

The jurisdiction

If you choose to place your wealth in an offshore bank, you need to ensure that the jurisdiction where the financial institution is located has the protection you need to ensure that having a bank account in another country is a smart decision. What are the things to look for when it comes to jurisdiction? The Nomad Capitalist recommends you ensure that it is not subject to scrutiny from international institutions or major powers like the United States, is pro-business and benefits from economic stability. These factors will lead to high renown that will contribute to the legitimacy of your account. 

 

The quality of the bank

Not only do you have to look at the quality of the jurisdiction where you would like to open your bank account, but you also have to consider the quality of the financial institution. It’s just like when you open a bank account in your home country when you look at their liquidity, the financial products available to you, and how they implement compliance. Reputable British banks have international divisions that offer offshore services, including Lloyds, Barclays and HSBC. There are also private banks that can provide niche services. 

 

Opening the account and nomad management

Do you have to send in a lot of paperwork? Are there very high deposit requirements? Is online banking available? These are questions you will want to ask when choosing your offshore bank. They can impose barriers to entry for commencing a relationship with a financial institution, and you should have them as part of your decision-making process.

 

Nationality restrictions 

Not every offshore bank is willing to accept customers from every country. After the enactment of FATCA in 2010, many offshore banks decided to stop accepting US citizens and permanent residents from becoming clients. A journalist also mentioned that a bank in Singapore decided to stop accepting British customers after Brexit. However, nationality restrictions tend to impact American citizens more often than not. Despite that, you should consult with the individual banks as you shop around for the account.

 

Are you ready to create an offshore company and bank account? 

If you’re looking for the best offshore banks, our team of offshore company formation and offshore banking experts at Europe Emirates Group can walk you through the process. We have everything you need to connect you with a reputable offshore banking provider to open an account. If you would like to begin the application process, contact us. 

 

Banking and Financial Services
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