Let’s sort out what you need to know if you’re planning offshore banking. The number one mistake of many non-resident account applicants is that they don’t analyze the features of specific banks and the realities of particular jurisdictions. However, such knowledge is essential for making the right choice and filing a winning application. As a result, they often fail or get foreign accounts that are riskier and less confidential than their domestic ones.
What do experts recommend to help you avoid mistakes in setting up personal accounts with the right offshore banks in 2021?
Why do you need an offshore account?
Offshore account setup is becoming a growing trend among individual and corporate clients. There are many reasons to become non-resident account holders, including the search for guarantees of the depositor’s privacy offered by a number of overseas banks. Some applicants open offshore accounts to protect assets, others want to take advantage of higher interest rates on deposits, or look for a menu of new banking products. In simple words, offshore banking is about transferring your money to a financial institution outside your country, so any place in the world can be chosen for opening a personal foreign account. A few countries are particularly popular with private persons wishing to park their money in a secure bank account abroad.
A personal offshore bank account provides its individual holder with many advantages, including the following ones:
Accessibility and flexibility. Many offshore banks nowadays advance and promote accessibility and flexibility of their products. The main goal is to provide each client with 24/7 global access to their private savings. Today’s online banking platforms and solutions allow bank transfers, payments, and virtually any other transaction to be performed remotely, regardless of the user’s location.
Privacy and security. Following international provisions, national regulations, and banking rules and procedures, offshore financial hubs and banks enhance asset security and customers’ data privacy.
Diversification. International financial centers provide easy access to global financial opportunities and strategies that reduce exposure to political and economic risks in the client’s country of residence.
Protection. Offshore accounts guarantee a higher level of protection against possible threats and hostile acquisition by both government and commercial entities.
A private person’s account opened with an offshore bank is a key to modern banking tools and high-security products.
of personal bank accounts abroad for
persons depositing €5000+. Expert services
based on 7+ years of experience in banking.
of personal bank accounts abroad for persons depositing €5000+. Expert services based on 7+ years of experience in banking.
How to choose an offshore jurisdiction?
Before opening an account with an offshore bank, make sure that the chosen financial institution is reliable, has enough liquidity, and meets all your requirements. There are various factors that you have to consider before you entrust your assets to a particular foreign bank.
The first aspect to pay attention to is the associated costs. The charge for the account opening and maintenance varies across banks. Besides, most banks tend to require a minimum deposit to check the client’s trustworthiness. For example, in Switzerland, the minimum deposit amount is EUR 5,000, in Portugal the deposit will be EUR 35,000 , and in Vanuatu EUR 1,500. Each of these offshore centers is reliable and attractive, but the conditions for opening a foreign account are different, so such details need to be considered in advance.
Another important piece of advice is to study the tariff schedule. All banks charge commissions for their services, but please check out in advance that the amount is not unreasonably high, otherwise you may be back to square one soon.
Our extensive experience in international banking allows us to hand-pick the most suitable jurisdictions for individuals who share with us their aspirations and concerns. You are welcome to book a FREE private web-based consultation and discuss with our expert where and how a foreign bank account can grant you well-deserved financial freedom.
How to apply for accounts with offshore banks for private needs in 2021?
Opening a foreign bank account for individuals in 2021 is not as easy as opening an account in a country of residence. Banks are under enormous pressure when they have to perform a detailed and never-ending legal Due Diligence on their non-resident customers. Therefore, as part of this clearance, banks request to submit a number of documents they have to review for compliance. This KYC (“Know Your Customer”) principle is a must for any bank dealing with new clients. Many banks prefer to accept application portfolios via professional agents/experts who are experienced enough to preview them before submission.
What documents do you need for opening a non-resident account for a private person?
Before you submit your application, you need to compile a portfolio of documents meeting the bank’s requirements and rules. The standard list of papers includes:
a notarized scanned copy of the passport;
a documented proof of residence;
the original reference letter from another bank or lawyer, accountant or another specialist;
a summary explaining the origin of the applicant’s funds and expectations/plans for the future use of the account/transactions.
The list of other required documents is country-and bank-specific. For example, some foreign banks request testimonials from other banks, many arrange mandatory online interviews, or even require an in-person visit of the applicant. When the portfolio of documents is ready, it is submitted for compliance to the bank. Due Diligence can take up to 30 days. But even when the documents are issued and compiled properly, the applicant may be rejected by a foreign bank without any comments.
Our InternationalWealth experts offer the service of the PRE-APPROVAL check, i.e. a preview plus preliminary submission of the application package to see which bank(s) is (are) likely to agree to open a foreign account for the client. Normally several banks are shortlisted to meet the client’s criteria. The Pre-Approval will allow you to focus on communication with those banks that are willing to accept your application.
We are a registered professional intermediary offering comprehensive offshore solutions. If you need advice on how to open an offshore bank account for your private needs in 2021, you are welcome to book a free web-based consultation by submitting a fillable online form or write in detail to our e-mail address at firstname.lastname@example.org.
Is it legal to open an offshore account?
If you can prove the legal origin of your funds and act legally in the country of your residence and/or tax residency, you have every right to open a foreign (offshore) account anywhere and whenever you need to. In some cases, it must be reported to the tax authority, but in principle there is no ban on opening an offshore account.
What is an offshore account?
An offshore account is an account in the country in which you do not reside and are not its citizen. In other words, any foreign account can be considered an offshore one. Sometimes offshore accounts are referred to as accounts in banks that operate in the so-called offshore zones. In most cases, in terms of information exchange and transparency, both classic offshore and onshore/midshore jurisdictions take a similar stance. The actual choice of the jurisdiction should be based on your awareness of the reason why you need an account, its purpose, and how you will use it.
How to open an offshore account?
To open an offshore account, it is necessary to select the right country and the right bank:
— collect a set of documents that are required by the bank;
— make sure that the documents are prepared correctly and that the bank will not reject your application just because of some negligent typo, inconsistent data, or a missing page (there are other things to consider and review before filing your application);
— visit the bank in-person or contact remotely to arrange an online interview, then wait for the bank’s feedback.
Please note that many banks prefer to accept applications already revised by professional experts.