How to Start an Off-Shore Bank Account
Offshore banking is perfectly legal, and there are many benefits to starting an offshore bank account. Not only will your hard-earned money be safely tucked away in an anonymous tax haven, but you'll enjoy asset protection, international access via the Internet, greater flexibility, privacy and confidentiality, and a higher investment return than typical U.S. banks. Starting an offshore bank account can be a relatively simple procedure, and the requirements are fairly standard worldwide. Learn here how to start your offshore bank account.
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Things You'll Need
- Computer
- Internet access
- Passport
- Driver's license
- Legal address
- Economic origin documentation
Instructions
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Think about what country you want to start your offshore bank account in. As of 2009, there are over 50 countries and territories that have offshore banking opportunities, so choosing the right bank that'll guarantee safety and confidentiality for your money is important.
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Research offshore banking rules and regulations by checking the Department of Treasury and the IRS's rules and regulations to make sure your account will be legal. If you don't have time to delve deep, hire a financial advisor or a company that specializes in setting up offshore bank accounts, such as Cayman Banking Services (www.caymanbankingservices.com) or DeltaQuest (www.myoffshoreaccount.com) and let them take care of all the legwork.
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Choose the right bank to start your offshore bank account. Be sure that you'll be able to access your account online so that you can transfer funds, check your bank balance, and make wire transfers from anywhere around the globe without having to travel back and forth unnecessarily.
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Ask the bank about access to online banking, interest rates, fees, minimum balances, withdrawal rules, transfers to and from remote bank accounts, and whether or not their annual percentage rate applies to the U.S. economy or to the local currency. Be certain you're comfortable with everything they offer before making a final decision.
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Select the type of offshore account you'd like to start, whether it be a savings, checking, money market, or other investment-type account. Some offshore banks also offer credit, debit and/or ATM cards, and even offer safety deposit boxes. Study your needs and choose the type of account and foreign financial products that'll suit your needs best.
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Complete the bank's application and provide proof of residency, such as copies of one or more utility bills. Most banks will require a certified and/or notarized copy of your photo ID, such as your passport and your driver's license, and some form of economic documentation, such as a bill of sale or proof of employment. The bank may also ask for a reference from your current bank. Most applications can be processed online or through the mail, although some countries may require that you open an account in person.
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Wait out the processing period, usually between 2 to 7 days depending on the country and the bank, and then make your initial deposit. Banks may require minimum deposits depending on the jurisdiction. Deposits can be made in person, by wire transfer from your current bank, or by money order, depending on the bank's procedures.
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Tips & Warnings
You don't need to be a millionaire to start an offshore bank account.
Large, international banks have more services and greater security, but their fees are higher than smaller banks.
You may want to make a trip every now and then to check on your offshore bank account.
Offshore banking shouldn't be used to evade taxes or to hide money from any government entity.
Check the laws where you live to find out if your foreign income will be subject to taxation. While offshore banks don't tax your income, your home country may, and if you don't report your offshore bank account, you'll be guilty of tax evasion.
Offshore banking is strictly regulated and is intolerant of criminal activity.
Offshore banks are not protected or insured by the United States government, so there could be some risk involved.
To clamp down on money laundering and other criminal activities, offshore banks require notarized personal documents to prove your identity.
