Save this article
Use this article for free on your own website
Republish this article for free on your own website or blog. Or search or browse for more articles that your audience will appreciate. Huge choice available. Ideal for finding quality, free content. Read our publishers guide.
Which Offshore Bank Account Is Right For You?
Making the move to an offshore bank account can be a pleasant experience that garners the account holder many privileges such as reduced taxes in their home country as well as the ability to earn interest on their money tax free.
Making the move to an offshore bank account can be a pleasant experience that garners the account holder many privileges such as reduced taxes in their home country as well as the ability to earn interest on their money tax free.
An offshore bank account can help investors to protect their liquid assets and real estate in a tax free zone.
Setting up an offshore bank account can cost anywhere between $0 and $1,400 USD depending on the vendor which an astute investor will recoup quickly through the savings accrued while holding the account.
An additional optional cost to consider is consulting fees with an offshore banking expert or asset protection lawyer. Paying a little extra money before making an offshore banking commitment can actually be a way to save money in the long run.
Types of Offshore Banking Accounts
There are primarily three types of offshore banking accounts; personal accounts, corporate accounts, merchant accounts.
Personal Offshore Bank Accounts
A personal bank account is available to an individual person only. A personal bank account offers the least asset protection but in general are governed by the same banking secrecy laws as other types of offshore bank accounts. A personal bank account has the caveat that your own name is attached to the account. There is no layered protection with a personal account.
The costs associated with maintaining a personal offshore bank account are much less than for a corporate. Getting a personal bank account is also the easiest since it requires that you provide a host of personal information to be set up such as proof of identity, notarized photocopies of your passport and full address information.
Corporate Bank Accounts
To hold a corporate account offshore an applicant must first register a corporation in that jurisdiction which comes at an additional cost over and above the cost of setting up the bank account itself. Depending on the asset protection structure being used it is possible to set up both the corporation and bank account itself without a person’s name appearing on the the corporate or bank account documents.
A corporate offshore account provides greater secrecy in transactions and usage than a personal offshore account especially when used in combination with foundations or through incorporation in more than one country.
Merchant Bank Accounts
A merchant account is typically utilized by businesses or websites that need to do credit card processing. While it is fairly easy to set up a merchant account with a local bank in your country moving your processing offshore can actually make your transaction processing less expensive; a savings you can pass on to your customer.