How to Get an Offshore Bank Account
An offshore account is a bank account opened in a financial institution in a foreign country. It offers the advantages of normally higher interest rates and more lenient tax regulations. It can also reduce liability by making it more difficult for creditors to gain access to your money. Many foreign banks offer maximum privacy so matters such as divorce or bankruptcy can be handled in secrecy. Also, banking transactions can be made from virtually anywhere in the world.
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Things You'll Need
- Identification such as a passport Proof of legal address, which can be documented by a current utility bill Documentation of economic origin and background, such as an employment contract
Instructions
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Steps to Opening an Offshore Account
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Ensure the legality of your account before you open it. This can be determined by reviewing the IRS tax regulations for offshore accounts found in the resource box below.
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Decide in which country to open your account. Every country has different rules and regulations, so a good place to start is by studying the International Monetary Fund's review of offshore banking centers in the resources area below. Some of the more reputable locations include Switzerland, due to the privacy offered, and the Cayman Islands, which offer you the possibility of opening your account in the name of a corporation, enabling you to keep your identity secret.
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Select the bank where you want to open the account. Some things to consider are fees, the availability of online banking, the wire transfer and withdrawal processes, and the length of time it takes to complete a transaction.
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Open the account, which can typically be accomplished by phone or email. Some of the common types of offshore accounts include current accounts, which grant you access to your money at virtually anytime; numbered accounts, which offer the benefit of privacy since the accounts are opened under a number instead of a name; and deposit accounts, which are similar to certificates of deposit.
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Tips & Warnings
Guard against potential risks. Be sure to select a country that appears to have a stable government so that your money does not disappear during an insurrection. Investigate thoroughly any bank where you are considering doing business, in order to avoid scams.
