Offshore Bank Account
Choosing to open an offshore bank account is something that many people are opting to do. There are several reasons as to why this is becoming an increasingly popular decision. The apparent reason is that an offshore or foreign bank account offers a wide range of benefits that can prove to be extremely useful in a corporate environment as opposed to a local personal bank account.
Why open an offshore bank account?
- You might be a resident of an offshore location, and due to your address, it might be difficult to access financial benefits from having an onshore bank account.
- For an expatriate who continuously moves around for work-related purposes, it can be more straightforward to have an offshore bank account rather than open and close accounts in every location.
- Having an offshore bank account opens up the possibility of dealing in different currencies rather than just your local currency.
Advantages of an offshore corporate bank account
- Storing your money in a different currency not only helps in conducting business globally but also helps in storing your money in a stable currency which can help you get a higher return on your deposits in the long run.
- In many countries, bank accounts with high amounts in them are often targeted by the local government. Storing your money in an offshore location with the right jurisdiction dramatically reduces political risk.
- Banks in offshore locations with stable jurisdictions like Gibraltar and Guernsey offer low debt and do not use the customer’s money as frequently as some local banks do. They provide a safe and reliable banking alternative.
- An offshore bank account has many resources at its disposal for asset protection.
- Offshore bank accounts are known for providing a higher interest rate than local banks.
- Offshore banks don’t try to control your capital which makes it easier for you to travel abroad and use your money for essential transactions like seeking medical treatment in a different country.
Steps to set up an offshore bank account
- Opening an offshore business bank account is similar to opening a local bank account. The bank will ask your name, date of birth, home address, occupation and citizenship. You will need to submit documents that support this information to the bank.
- Depending on the bank you choose they may ask you to submit additional verification documents. These are put in place by the bank to ensure the legitimacy of every bank account and to make sure that no money laundering, tax fraud or any other illegal activity takes place through their bank.
- Once all the essential documents have been verified and accepted, the bank will ask you in which currency you want to store your money. This is an important decision to make as choosing the right currency may allow high-interest rates on your deposits but may also result in foreign tax liability.
How More Group can help you
There are several options to consider before deciding to open an offshore company bank account. The first is to determine which offshore bank account would benefit you the most regarding accessibility, resources available, interest rate, and so forth. The second is to determine in which currency you should ultimately store your money in. We have helped several clients answer these questions by explaining the benefits of each available bank, and currency based on their residency status as well as citizenship.
The best bank and currency for every person depends on how they plan on using their account (whether it is for personal or business purposes) and how frequently they will access their account. Determining the optimum combination for you should always be done by a tax professional such as the ones in More Group. We are aware of how foreign currency is treated in every jurisdiction and how opening an offshore bank account affects your tax. We will help you choose the best combination for your offshore bank account so that you can have peace of mind when it comes to your finances.