Frequently asked questions about offshore bank accounts
One of the initial questions that many people ask when they hear the term “offshore bank account” is that they mean by that? These are accounts that are opened in banks based in countries or territories that apply few or no taxes to individuals and businesses. They are usually small island countries whose tax regime attracts customers from the most developed nations; moreover, in these offshore jurisdictions, there is a total respect for banking secrecy.
The jurisdictions most used and recommended by the experts to set up an offshore company or to open a bank account are Panama, Nevis, Belize, Cayman Islands, Dominica, Hong Kong, Jersey, Guernsey, Isle of Man, San Vicente and Liberia.
Characteristics of offshore jurisdictions:
– Low or no fees for individuals and non-resident companies.
-Total respect for banking and commercial secrecy established by law. Most jurisdictions punish you with imprisonment or apply high fines in the event of a breach of banking secrecy.
– Sophisticated financial and commercial legislation, since they need fewer requirements for setting up an offshore company and opening bank accounts.
– There is no exchange control and there is great freedom in the movement of capital.
– Poor banking regulation.
– A very flexible legal system.
-In these jurisdictions, there is great economic and political stability, in the interests of all parties to maintain peace and avoid problems that lead to a considerable flight of capital.
– These jurisdictions tend not to sign treaties for the exchange of tax information with countries where high taxes are applied.
– They have excellent telecommunications networks.
-The staff of online banking services can speak several languages, including English, French, German, Spanish, Russian and Chinese. Open 24 hours, 365 days a year.
Advantages of opening an offshore bank account and carrying out transactions abroad:
(a) They allow more international business activities and broaden the diversification of investments. On many occasions, it is more profitable to make investments in the country where you do not reside, and where you usually pay high taxes.
(b) Savings on taxes. It is therefore advisable to invest with your company from abroad because if you do it with the same company, in the country of residence, the tax burden increases.
(c) Protection of property and the search for security and privacy. An offshore company helps settle divorce disputes, lawsuits, civil liability, prison threats. If you have assets associated with an offshore company, no investigator will be able to find them minimizing potential problems.
What needs to be considered to choose the jurisdiction where to set up the offshore company and then determine the most appropriate for the offshore bank account?
– Commercial activities developed abroad: business (purchase and sale), tax savings, whether the funds move or not, revenues for intellectual property rights, succession, life insurance, stock market investments, purchase of the real estate, etc.
– Owned assets can depend a lot on when selecting the jurisdiction.
The fundamental idea of a customer who decides to carry out offshore operations is to pay fewer taxes, in an atmosphere of total privacy. Therefore, the first thing is to find a jurisdiction where there is the greatest banking secrecy, where there is freedom of movement, no exchange control, where there are reliable banking services, excellent telecommunications networks and low bank costs and the establishment of offshore companies.
It is advisable to always consult with experts at Offshorecitizen before deciding the most appropriate jurisdiction for an offshore bank account.
Examples of specialized jurisdictions:
– Traditional banking centers: Switzerland, Luxembourg, Cayman Islands, Isle of Man, Channel Islands, Panama, Hong Kong.
– Greater banking secrecy: Austria, Luxembourg, Portugal, Switzerland, Hong Kong, and San Vicente. The least secure are the Bahamas and Singapore.
– Deposit of fortunes: Switzerland, Andorra, Monaco and the Channel Islands.
– Intermediate Companies: Channel Islands, Gibraltar, British Virgin Islands.
– Foundations: Panama, Austria, and Luxembourg.
– Investment funds: Luxembourg and the Cayman Islands.
– Insurance companies: Bermuda, Cayman Islands, Channel Islands.
– Electronic commerce: Panama, Belize, Nevis, Isle of Man, Jersey, Cook Islands, Antigua, and Barbuda and Gibraltar.
– Establishment of c Antigua and Barbuda, Bahamas, Dominica, Comoros, Cayman Islands, Samoa, Vanuatu, and New Zealand.