Can I open an offshore bank account?
“I do not have any company and I look for an offshore bank account for savings and investment, why could I prefer a corporate account instead of a personal account?”
There are a number of benefits available to you through a corporate offshore bank account, even if you do not do business.
The number one reason is the fact that personal bank accounts can fall under the European Savings Directive. The consequence is the automatic exchange of information between the signatory states on clients that obtain savings income in one EU Member State but reside in another, or the 20% tax withholding (in July 2008) in the source of income. If you and your bank are residents of one of the EU Member States, or dependencies of the Crown of the United Kingdom (Channel Islands and the Isle of Man), or Overseas Territories of the United Kingdom (Anguilla, British Virgin Islands, Cayman Islands, Montserrat, Turks and Caicos Islands), as well as the dependent territories of the Netherlands (Aruba, Netherlands Antilles), and other non-EU countries that have voluntarily agreed to apply the same or similar measures (such as Andorra, Liechtenstein, Monaco, San Marino, Switzerland, USA), this Directive may apply to you. If you use a company and maintain a corporate bank account those regulations do not affect it.
You may want to keep your money in an offshore bank to increase security, compared to the conditions in your home country. A number of countries simply do not allow their citizens to have offshore personal accounts without special permission from an authorized state agency, which in most cases is almost impossible to obtain. You can still open an offshore personal account because many offshore banks do not need you to provide any permission from the authorities in your country, but that would definitely be illegal. Instead, it would be more reasonable to incorporate an offshore company, open a corporate bank account, and use it as a “wallet” for your money, but keeping the text of the law.
Having an account in the name of a company instead of your own name allows you to keep your offshore banking even more anonymous and confidential. It does not easily reveal how and where you spend your money and does not attract the attention of a certain category of undesirable people, such as swindlers and blackmailers.
Your funds in the bank account of the company are legally separated from you. It is not so easy to tax the assets of a company with its personal obligations. This generates another layer of asset protection.
Certain offshore investment products that may be of interest to you may seem only available to corporate clients instead of individual ones. It is in that case that you should consider incorporation.
The transfer of shares of the company to future heirs in many cases will allow you to reduce the inheritance tax and / or inheritance waiver procedures.
The incorporation of an offshore legal entity implies additional expenses for the installation and opening of the account, as well as fees of the current administration and at least fixed annual government fees, without the presentation of reports.
However, considering the wide variety of offshore jurisdictions to open an offshore bank account, you can always visit Offshore-Citizen site and find a cost-effective solution that fits your case.