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Offshore bank accounts – corporate or personal

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.

WHAT IS AN OFFSHORE BANK ACCOUNT?

In general, any bank account opened outside a native country can be considered an offshore bank account. There is usually not much difference in service or benefits between the corner bank and a bank located in the Cayman Islands. The appeal is much more evident during tax time when assets and income must be reported to the IRS or other government revenue agencies abroad. Because the banking sector is perhaps 10% deposit and accounting of 90%, many smaller countries are able to offer offshore bank account services without a substantial investment of their own. Island states such as the Cayman Islands or the Channel Islands can compete successfully with Switzerland or Belgium for offshore banking customers. Local laws may limit or eliminate taxes placed on traditional bank accounts. This is the reason why some companies and richer individuals prefer to open a bank account in small sovereign states that allow account holders to remain virtually anonymous. For many years, an offshore bank account was indeed a convenient way to hide profits from illegal activities or underreported business earnings.

Internal Revenue Service ( IRS US) would have little knowledge of money deposited elsewhere. Offshore banks were not obliged to report the existence of these accounts, and account holders legally could not pay little or no taxes in the host country. In recent years, however, the rules governing offshore banking have become much more stringent. Any bank account containing over $ 1,000 US dollars ( USD) must be reported as income to the tax authorities, no matter where that account is located. Many people consider opening an offshore bank account for very legitimate financial reasons. Residents of a politically or economically unstable country can arrange for an account in a more stable country. If the government should collapse financially, residents can still protect their money from a rush to the National Bank. Those who travel frequently to Europe or Asia can benefit from having an account in England or Japan. The exchange rate between foreign currencies is often more favorable with ” local ” accounts”. With the advent of electronic banking services, an offshore bank account holder can often easily conduct routine transactions without traveling abroad. There is still a stigma attached to an offshore bank account due to some gray area financial reports, but there is nothing illegal or unethical about opening one for legitimate reasons.