Offshore banking: all you need to know to open an account!

The offshore banking sector is constantly evolving. While it used to be a luxury for the extremely wealthy a few years back, that is no longer the case. In fact, academic research has proven that the demand for offshore baking is on the rise by many and this will continue to be the case for quite some time. Why do people open these accounts? Investors opt for offshore banking because of many reasons. The main one is asset diversification. However, there are several features such as privacy and risks that must be considered. Everything you need to know about offshore banking will be explored below.

Basic requirements to open an offshore bank account

There are some basic requirements to fulfil before opening an account. First of all, it has become increasingly important to present your own proof of address so that financial institutions are able to confirm your domicile. This is important because they need to comply with tax obligations or to deal with issues such as OECD compliance and much more. This requirement is met by producing a utility bill that is not older than 90 days and this document must be submitted along with the usual information, such as your name, date of birth, citizenship, passport and job details, that you must provide. To make things easier, in countries like Mauritius, your physical presence is not even required to open an offshore bank account. Our agency is going to help you complete all the procedures. If you want to learn more about this, you can get in touch with one of our agents.

Benefits of opening an offshore bank account

There are several advantages to opening an offshore bank account. Besides from benefits that are country-specific, Luigi Wewege has advanced a few general ones, that are also very important to consider, in his recent 2020 interview. He said that they generally include “peace of mind… against political upheaval, increased personal freedom, living in the digital banking revolution, currency diversification, higher interest rates on deposits, easy access to medical care abroad…” and others. As such, you must ask yourself whether you will be able to achieve those benefits by opening an offshore bank account and make a decision after this evaluation.

Where to open an offshore bank account?

Deciding in which country to open an offshore bank account is very important. There are several criteria that you must consider before picking up the appropriate location. For example, you must consider

  • The tax rate: is it a beneficial one?
  • Banking privacy: will you be able to enjoy the privacy that is required to protect your financial assets and to keep your transactions secure?
  • Interest rates,
  • Treaties between the country you want to establish your offshore banking account and your country of residence and
  • Personal circumstances.

Additionally, you must also choose a country that is suitably located and prepared against global tensions. These involve volatility because of issues such as flashpoints in The Middle East and Asia, Brexit or even the US/ China Trade War.

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