It is without a doubt that banking offshore can be beneficial for certain individuals. It can provide access to foreign currencies or financial products not available in the UK, along with more privacy and the potential to be more tax efficient. But managing an offshore account can also be complicated, with varying factors determining which offshore bank is best for your needs.
To help simplify things, here are some important factors you should consider before proceeding to open an international account:
Minimum deposit required
Some banks allow customers to begin with relatively small balances, debunking the myth that offshore bank accounts are only for the wealthy. In fact, several offshore banks in different nations have made their accounts accessible for those who would be considered more in a middle-income bracket. If this sounds like you, it’s a good idea to research the banks that offer lower opening deposit amounts and set-up fees.
Applicable banking laws
The banking laws and regulations found in different countries will vary, meaning the degree of protection you will enjoy will also differ. So, you’ll want to look beyond general claims of confidentiality and find out exactly how the current laws and regulations affect the practices of banks within a country you might be interested in. Then, if you’re happy with those protections, it’s worth taking your time to look closely at those banks.
Stability of the bank
Once you identify the jurisdictions with banking laws that appeal to you, it’s important to determine the institutional stability of the banks based in those countries. Ask yourself: what measures do I need to protect my money if certain events occur? Those events could be political, while others may have to do with local and global economic shifts. The greater stability of the bank, the more peace of mind for you.
Remote banking options
Ease of banking is one of the most crucial factors to take into consideration when choosing to bank offshore. Thankfully, with online banking widely available, it has become much easier not only to set-up an account, but to manage transactions through online platforms without being physically present.
Tax and interest rates
Certain jurisdictions provide lower tax rates on interest than others, helping you maximise your gains. It is, therefore, helpful to compare different interest rates to discover the best options available to you and for your bespoke needs. It should also be remembered that there may be a requirement to disclose interest received on an offshore bank account in one’s own country of tax residence, the interest potentially then becoming taxable income.
When comparing offshore banks on these critical factors, remember to consider how each point fits with your future financial plans. A UK-based offshore company formation specialist, like Turner Little, will provide the services you need to arrange a bespoke package that works for you.
Whether you require a single personal offshore bank account, or corporate offshore banking for your business, Turner Little will be able to help you arrange an account anywhere in the world, regardless of where you call home. To discuss your requirements, get in touch today.