Financial access and security are vital requirements when contemplating retirement abroad. It’s necessary to possess assets safely held and easily available. One of the best ways to resolve these problems is by having an offshore bank account. As with anything there are a few safeguards that need to be taken in opening an offshore bank account. It should first be understood it is both legal and easy to possess such an account.
An offshore account is simply a banking account with a bank that operates in country different from the residence of the account holder. The anonymous or numbered accounts given publicity in many novels of intrigue and crime are now virtually things of the past. Offshore accounts are safe, probably safer than normal non-offshore accounts. Inside a country the tax authorities could seize funds in a domestic account leaving the burden of proof of innocence of an offense on the account holder. It’s much more challenging to take funds from an offshore account and might involve obtaining a court order which probably requires at the very least the prima facie proof of a crime. Since the Twin Towers attack in New York (9/11) increasing restrictions have now been placed upon banks. Total privacy is now difficult to obtain but a reasonable level of performance may be found.
Advertisements is found in newspapers, financial journals and on the web offering introductions to banks and the establishment of offshore bank accounts avenue corretora. These must certanly be ignored. The offers amount to the provision of freely available application forms, no genuine introductions and a pre-supply charge invoice in 3 or 4 figures. An individual or company offshore account may be opened with at the least formality and, except, usually, in the event of a business account, attendance is at the lender is not required.
Small banks on Caribbean or Pacific Ocean island tax havens must certanly be avoided. Such banks often manage their affairs as single accounts with larger banks so all that happens is that an extra layer of charges and formalities is introduced. The location of such accounts also draws attention to the account holder. It is useful to really have the chosen bank operate in a location which can be governed by the kind of common law to which is accustomed. Generally the decision is going to be between derivatives of British or Roman-Dutch law. The differences connect with burdens of proof and the status of women but there’s no need to consider such detail here. The preference must also be to really have the bank do business in a language in which is wholly fluent. The geographical and jurisdictional location relevant to the nation of residence are also important. Banks are increasingly succumbing to the pressure of governments to enter into information sharing arrangements with tax authorities. As an explanatory example, it would not be recommended for almost any EU resident to open an offshore banking account in the British Channel Islands or the Isle of Man. Agreements between banks and governments cover the entire EU area and are increasingly applicable to the traditional offshore banking countries such as for example Switzerland, Austria, Andorra and Luxembourg.
You will find large globally operating banks that’ll permit the opening of offshore accounts via the net with the provision of the right documents and the absolute minimum deposit. Some also do business in places that aren’t considered to be tax havens. Most major banks offer debit cards with offshore accounts. The preference must certanly be for a Visa or MasterCard debit card. Although they’re not bank cards and any use is charged immediately to the lender account they may be used for specific things like airline ticket purchase or hotel bookings. Another useful facility is that the accounts may be of a multi-currency nature. Access via the net for several transactions is essential.
The establishment of offshore corporate or trust structures will probably require the way to obtain additional information and personal attendance at the lender may also be necessary. Supporting documents will include a professional (notarized) copy of a passport, proof of residency (a utility account or driving license will suffice), a letter of recommendation by the neighborhood branch of the offshore bank or from a current account holder or from any bank with which business is conducted, your own or business reference and a completed signature card. Forms and supporting documents must usually be mailed to the lender and funds transferred. The opening deposit may be as low as $US2000.
These suggestions should enable a retiree to possess access to financial assets with the smallest amount of possible risk. Offshore income may be paid to the offshore account and wire and credit card withdrawals is going to be available. Local banking for any local earnings, if allowed, may be handled with a local bank.