How to Set Up an Offshore Account

Learn how to set up a bank account outside of your country of residence.

An offshore account is a bank account located in a jurisdiction outside the country of residence of the depositor. Some Americans set up an offshore account to save money on taxes, while others establish a foreign account because they spend significant time in the country where they'd like to become an account holder. Establishing an offshore account is similar to establishing a domestic account. What makes these accounts different are the laws that govern them, because the account falls under the jurisdiction of the laws of the country where the account is held.

Instructions

1. Contact your offshore bank of choice and express your desire to open an offshore account. Make sure you choose a jurisidiction with strong banking secrecy laws.

2. Complete and submit the account application, along with the all supporting documentation. The bank will send you a confirmation notice either by mail or email when the paperwork has been processed and when your offshore account is open. While prerequisite documents may vary by banking institution, generally you need a copy of the passport and driver's license for each individual who is going to be on the account. The bank may also request references from other banks where you hold accounts. If you are opening an offshore account for your business, corporate documents such as the Articles of Incorporation may also be requested.

3. Wire an initial deposit to activate the account.

Tips & Warnings

• Some offshore banks allow you to choose to open an account in your currency of choice, for example, pound, dollar or euro.

• Switzerland offers more than 400 different banks from which to choose.

• Offshore banks may deduct account fees from your account balance. Fees vary and may include transfer fees, setup fees, courier fees or charges for additional cards to access your account.

References

• Offshore Company: Offshore Bank Account Setup
• Offshore Explorer: Definition of an Offshore Bank Account
• Escape Artist: Offshore Banking
• Offshore Companies House: Setting Up an Offshore Account