Factors to Consider When Choosing Your Offshore Bank Account
Are you looking to open an offshore bank account for either personal or professional purposes? There are a lot of factors that go into that decision such as your business goals, 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, take a look at our recommendations for choosing the right offshore bank account.
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. Here are some of the main benefits of offshore accounts:
If you don't have residency in a specific country, it could be difficult to open a bank account and obtain a debit card, credit card or investment products.
Offshore accounts grant you stability if you are from a country prone to political and economic fluctuations.
You can hold a balance in multiple currencies or hold your assets in an overseas bank account in different tenders.
Many accounts are in USD.
Are Offshore Accounts Legal?
The legality of offshore accounts is one of the biggest questions we get. Like we said when discussing offshore businesses, as long as you declare it, it’s legal. 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 regulations to avoid trouble with tax authorities. Corporations often choose to go offshore while having their main revenue centres elsewhere; with offshore accounts, it's possible to do so, but you must declare the account.
Opening your Offshore Bank Account
Now that we’ve gone over some particulars concerning offshore bank accounts, what are the factors to consider when opening your offshore account? Here’s our list:
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. The Nomad Capitalist recommends that it not be subject to scrutiny from international institutions or major powers like the United States, is pro-business and benefits from economic stability.
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.
Look at the following aspects when choosing:
The financial products available to you
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 more specific services.
Opening the Account
Do you have to send in a lot of paperwork?
Are there high deposit requirements?
Is online banking available?
These are questions you will want to ask when choosing your offshore bank. Entry barriers can be in place when opening the account and you must have all these questions answered before you make your decision.
Not every offshore bank is willing to accept customers from all countries. After the enactment of FATCA in 2010, many offshore banks decided to stop accepting US citizens and permanent residents as clients. Nationality restrictions tend to impact American citizens more often than not but you should still consult with individual banks as you shop around for the right account.
Are you ready to create an offshore company and bank account? If you’re looking for the best offshore bank accounts, 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 with a reputable offshore banking provider to open an account; if you would like to begin the application process, contact us.
CEO, Europe Emirates Group