Many publications on the web or in the press extol the advantages of opening a bank account abroad, that is to say in an offshore bank. Given the specifics of the operation, several questions may come to mind. Why is the subject becoming more and more popular? Is opening an offshore bank account legal? What is the connection between offshore and offshore? How to find tax havens for offshore assembly?
Before going any further, ie opening an account abroad, these questions deserve the appropriate answers.
Offshore is a word of British origin. It means "off the coast". In this sense, an offshore bank account refers to an account in a bank located outside the country of residence of the holder.
This is often a non-resident account domiciled in a tax haven.
Compared to a typical bank account in your country of residence, this type of bank account has many tax and legal benefits.
Current account: bank account intended for the realization of regular operations.
Resident account: in a context where the account belonging to an offshore company is domiciled in the country of establishment of the company. The holder must be a non-resident.
Account created for the purpose of performing live stock trading.
Deposit account open to allow savings to grow.
Offshore bank account: for whom?
The existence of an offshore bank is completely legal. This is a bank doing the same activities as you know. Which means that there is nothing wrong with wanting to open an offshore account.
This is not a means to launder mafia money. Nevertheless, malicious people sometimes use this type of account illegally.
You do not have to be wealthy to open an offshore bank account. Indeed, this alternative is accessible to the general public.
The conditions to create an offshore account are: to possess a piece of identity, to provide some proof of residence and to make a first payment of about 1000 euros. The process of opening an account abroad is not complicated.
A large number of companies and individuals already have offshore accounts. Preparing for a departure abroad and retirement can motivate you to open an offshore bank account.
There are regulations to respect to have an offshore bank account. Indeed, it is essential to remain in the legality.
Thus, for any person residing in France, the statement of account to the French tax authorities (1) is mandatory. Failure to comply with this rule results in the application of a fine of more than 750 euros.
For an undisclosed account that is domiciled in an offshore bank located in a jurisdiction that does not have the same regulations as those applied by the French tax authorities, the fine may be up to 10,000 euros.
Open an offshore bank account: what benefits do you expect?
Investor or entrepreneur, you can open an offshore account and enjoy its many benefits.
If you want to create an offshore company, an adapted account will help you to better manage your activities abroad.
Some people choose to open an offshore account to benefit from a tax significantly more advantageous than in his country and not be subject to too much tax.
In some tax havens, you will not even be able to pay any taxes.
For different reasons, without being a bad person, you are a banking ban in your country? An offshore bank account is an interesting solution to work around this problem. It allows you to exercise your activities without constraints. You continue to be able to freely manage your money.
In addition, investors are interested in obtaining better investment rates compared to the profits that could be generated by investments made in France. The protection of wealth and succession is one of the advantages of an offshore account.
Individuals residing in a country where legal and political instability reign are geared towards opening an offshore bank account. Indeed, the security of their assets is not assured in their place of residence. With an account abroad, they can be more confident knowing that their money is safe. They will also be able to avoid the crisis and its economic consequences.
In your country, you no longer enjoy banking secrecy? You should know that in an offshore bank, discretion is 100% guaranteed, provided you have chosen a jurisdiction that ensures the preservation of banking secrecy.
The choice of jurisdiction is of great importance because the aim is to find a territory where the regulation applied in the sector concerned is more flexible. It should be noted that even in EU countries, opening an account in the name of an offshore company is the best way to guarantee anonymity.
An offshore bank account is also popular for the simplicity of the associated procedures, its often reduced fees, access to an offshore bank card and accessibility to loans with competitive rates. Indeed, like the opening of an account, all the banking operations are carried out without complications.
The low tariff is explained by the absence or weak control of the government, but also by the lower general costs than in some countries.
Open an offshore bank account: how to proceed
In the European Union, the legal opening of an offshore account is authorized to any citizen, on behalf of an association, an offshore company or on behalf of a natural person, since the year 1990.
In France, you must declare the existence of your account to the IFCS.
By choosing an offshore bank online, you have the option to open an account remotely. It is sufficient to provide the requested documents (ID + proof of residence) and make a first payment. The minimum amount of the latter varies from one bank to another. In general, the amount is set around 1000 euros.
Politicians, great entrepreneurs or celebrities can opt for opening an offshore bank account at a high-end establishment. These sometimes require a few hundred euros as down payment.
Some banks require a meeting with the account holder. In this case, you must be willing to travel to open your account abroad.
With regard to legal persons (association or offshore company), the offshore bank online can request a business plan.
Depending on the profile of the account holder and the banking institution he / she has chosen, opening an offshore bank account may take up to 2 days to a week.
To open your account abroad, you can go through an offshore provider. The latter is a professional who knows the principles of offshore accounts. He is able to represent you and guarantee your abilities, so that you no longer have the obligation to move. By seeking the services of an offshore provider, you will benefit from reduced rates.
Once your account is open, you can have your offshore bank card.
Open an offshore account: in which bank do it? If creating an offshore bank account offers multiple benefits, identifying the best tax havens is essential.
For greater profits and serenity, countries that lack political stability should be avoided. Finding out about each potentially interesting jurisdiction becomes relevant.
Among the best options in terms of tax havens, note:
The Bahamas: in the Caribbean, this country is one of the richest. Its economic and political stability, with its attractive taxation, is one of its considerable assets. It puts at your disposal more than 250 banking institutions. Bank secrecy is also well guarded. However, expect larger agency fees. An estimated capital of $ 50,000 is required for companies wishing to open a bank account in the Bahamas.
Belize: In terms of accessibility, Belize offers more flexibility compared to the Bahamas. Taxation is one of the things that makes this country attractive. The first payment required by Belize banks ranges from $ 1,000 to $ 3,000. Despite higher bank management fees, you still have to take advantage of the offshore assembly facility in Belize.
The Cayman Islands: the largest offshore banking center internationally, they have a number of banks over 280. You have no fear of political stability, because the Cayman Islands depends on the United Kingdom . There is no tax to pay apart from the customs and stamp duty.
Luxembourg: an option to consider, given its good reputation. Discretion and security will be guaranteed. Banks in this country provide you with the financial expertise and advice of qualified professionals.
Panama: is characterized by very liberal legislation. The discretion is total, there is no exchange control. More than 100 banks await you with quality services.
Other: Other equally interesting alternatives exist: Guernsey, Hong Kong, Jersey, Liechtenstein, Monaco, Seychelles, Singapore, etc.