Before opening an offshore account, you should familiarize yourself with the secrets of offshore banking and get rid of misconceptions that can lead to misunderstandings about the concepts.
Offshore banking is not a shady industry of obfuscation. Instead, it is an important tool to protect your assets and grow your wealth. Today it is a tool that anyone at any income level can access and benefit from.
An offshore bank account can be created anywhere in the world, even though most people immediately think of palm trees, beaches, sand and islands when they hear the term "offshore banking", that is not true. Offshore banking actually refers to banking anywhere outside of your home country or country of residence.
Now, here are the facts you need to know before opening an offshore account.
1. You can open an offshore bank account yourself.
In the past, when banking regulations had not yet evolved and there was no internet, a lawyer was required to open an account in another jurisdiction, but not now. It is worth noting that there are still places where there is a requirement that clients have to present themselves.
2. Service providers sell structures that cannot open bank accounts abroad.
When contracting a service provider, you must be careful with the business structure, it must fit your requirements and not a pre-established one. On this depends whether or not you will be able to open corporate bank accounts later on.
3. Easy to open bank accounts may cost you more in the long run.
Opening low-cost offshore accounts can be counterintuitive, first beware of their fee structure. If you get a cheap account, expect cheap service, cheap technology and cheap customer service.
4. Not all banks are the same
While obvious to many, to others it may not be so obvious. There are different bank business models and the way they motivate their staff. When it comes to banking, you should make sure that your money is deposited in a healthy bank that does not gamble with your savings in toxic investments or high-risk loans.
5. The media and governments do not want you to open an offshore bank account.
Foster Swiss always repeats it and will do it again, offshore banking is completely legal, in fact, it is an easy way to protect yourself from various risks and make your money grow.
Most of the time the stories shared by the media expose politicians, famous athletes or movie stars using offshore companies to hide their wealth from taxes. It's not quite like that, it's a legal method to increase the return on their investments and protect themselves from frivolous lawsuits.
6. First impressions have always mattered
The account opening process is like an interview. From your first email and phone call to you’re in-person interview, if warranted, you are being scrutinized. It may even be the reason the bank turns you down, so make sure you make a positive impression.
7. Residency and citizenship
Not having the correct citizenship or residency can mean a long opening process or total failure. Our Foster Swiss consultants can help you by streamlining this process for you. Whether trying to open an account in person or remotely, these characteristics are often the first thing you notice.
8. Banks can freeze accounts without notice
Account closures and freezes are the order of the day lately, whether due to minor technicalities or major inconsistencies. That is why it is of utmost importance to be careful when managing your bank account.
9. Your bank account can get you a mortgage
If you plan to open a personal account, your offshore bank account can help you generate international credit. You will not need to live in the country where the account is located. The primary requirement is to establish a good credit history and to make proper and responsible use of the bank's products such as credit cards, investment products, among others.
10. Your offshore account can be like an insurance policy.
It is important to open the account in countries where you feel safe and secure, since those are the systems that back up your money. Opening an offshore account and spreading your wealth over several countries can act as an insurance policy against any number of risks that could affect the economy, the currency, the bank and, as a result, your wealth.
If you would like more information about offshore bank accounts, Foster Swiss can advise you. We can help you with practically everything, from choosing the bank that best suits your needs, to the opening of the account.
For more information on this topic or any other requirement related to our services, you can contact us directly at info@fosterswiss.com