Business Abroad

Offshore bank account for individuals

An offshore account is an account in a jurisdiction where there is minimal taxation (or no taxation at all) with high anonymity of personal data. But often an offshore account is understood as any foreign bank account. The current article is no exception.

Any foreign account can diversify economic risks. And problems happen with unenviable regularity. March 2020 (and indeed the entire year, to be honest) confirms this fact. Buying assets abroad, be it real estate or a car, will also be much easier if you have an account. And in general, working and living in another country is very problematic without a bank account.

What features of the bank are important when opening an offshore account in 2020?

A foreign bank should be selected very carefully. It must withstand various shocks that happen and will happen in the future. First of all, the safety of your money depends on this. When choosing a financial institution, pay attention to whether it has a license and whether it is suitable for you. Whether it works via SWIFT or SEPA, what its reputation is.

In addition, it is important to make sure that the bank is ready to cooperate with you as a resident of a foreign country. You should carefully review the list of restrictions if any (on the number of documents, on translations, on control). The most important thing is to understand how ready the bank is to provide the services you need; issuing and delivering payment cards, online access, and so on.

What do I need to do to open an offshore account?

The procedure for opening a bank is generally the same for all financial institutions: select the type of account, prepare documents, and send them. The most difficult and important thing is to prepare documentation. The list of documents is also very similar from bank to bank; passport, proof of residential address, and proof of the legality of your funds.

But it is important for the bank to understand in detail every unit of the amount that you invest in the bank. This is why compliance Department employees often request additional documents.

It is recommended that you go through this stage with a consultant since the smallest error that the bank’s employees find out can cause rejection.

In which country should I open an offshore account?

The choice of the country in which to open an account depends on your goals and the size of your assets. Which account is suitable for you? A savings account, investment account, or deposit account to pay your daily bills? Which country will the money be credited to the account from?

Every fact plays a role. If you need to buy a house in Italy, it is better to open an account in an Italian bank. If you plan to live in France and pay bills, you need to contact a French bank.

The amount of capital also has a greater impact on the bank’s requirements. There are banks, such as Swiss ones, that require a minimum deposit of 5,000 francs or a million. This factor cannot be ignored.

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