Finding Offshore Bank Accounts


 

Finding offshore bank accounts is as simple as doing a basic search on the Internet.  Currently, offshore bank accounts exist in a large number of different companies.  The majority of these offshore banks still exist in island countries; however, there are a number of exceptions.  Two such examples include Switzerland and Luxembourg.  These land locked countries are not truly offshore; however, they do provide you with some of the best benefits of other offshore banks. 

 

When trying to determine which offshore bank to choose, you must consider a number of different factors: 

 

1.  What level of privacy do I need?  Although many offshore banks offer a high degree of customer privacy regarding their accounts, some offshore banks go a step or two further.  Since everyone’s situation is different, you will need to decide for yourself how much privacy you will need. 

 

2.  Stability of the offshore bank’s country.  Since your funds will not be insured as they would be by the government in the event the bank collapsed, you need to do some due diligence here to see how stable the bank’s home country is and decide what level of risk you are willing to live with.  If the country has seen political upheaval in the last 20 years or it is feared there may be some coming within the next 5 to 10 years, you may want to opt for another country that has a longer track record of stability.  On the other hand, you may be ok with a little more instability, especially if it will allow you the chance to get higher interest rate returns. 

 

3.  Offshore banks disclosure rules.  One benefit of finding offshore bank accounts is to take advantage of the potential tax shelter.  Many offshore banks do not disclose interest income to governments and leave this issue for you.  Some countries offer benefits in this area allowing you the chance to either avoid paying taxes on the interest income or delaying the payment of these taxes to a later point in time.  For some, this present value of money gives them added benefits. 

 

Popular choices for finding offshore bank accounts include Panama and Singapore for better returns and higher security.  However, Switzerland and Cayman Islands have been historically known as offshore banking areas that have a great deal of stability.  Regardless of which offshore bank you choose, finding offshore bank accounts is as simple as deciding what you want beforehand and finding a bank to match it.