Discover the power of a strategic Plan B, even in the world of finance. Just as a traveler prepares with a backup plan, a shrewd investor safeguards their financial future. Uncover the secrets of offshore accounts – the cornerstone of modern resilience.
Far-sighted people always have a Plan B – even when they are on a pleasure trip. What if your bank card is suddenly declined? It would be wise to have another one, and the situation will be resolved in a few seconds. The same principle is applicable to business: you need to be prepared to overcome possible economic recession, the consequences of an armed conflict, or issues with cryptocurrencies. A full-fledged Plan B means that you have real property in another country, an offshore company, an offshore bank account, and second citizenship for the whole family. In this post, we will look at one aspect: an offshore account, which is a must-have in present-day conditions.
We will be glad to see you on our portal which is entirely devoted to “Plan B arrangements”, and you can read a more detailed article to see why people choose offshore accounts. The authors of our articles are offshore experts who help people establish business structures, create accounts, become residents or citizens of another country, and put money into real estate wisely. Book a session with us if you want to have a smooth experience and avoid problems when you set up a non-resident bank account!
A Non-Resident Account: Advantages and Disadvantages in 2023
The human brain always pays attention to the disadvantages first and then considers the advantages. With that in mind, we will put the disadvantages of opening an offshore account first:
- The term “offshore” still has the flavor of scandals and tax evasion about it – even though any unlawful goings-on are a thing of the past.
- If you have an offshore account, you should be prepared for more regulatory scrutiny on the part of some governmental and tax authorities.
- You cannot be 100% incognito even when you go offshore, and OECD and FATF are putting pressure on the offshore jurisdictions and can impose any international regulations at any time which will result in less privacy.
- The minimum deposit (balance) on your offshore account can sometimes be higher than you can manage.
- Some offshore banks may prove to be less protected than their onshore competitors if we face a serious financial crisis, so you need to be very careful when you choose a bank.
- Not all offshore banks will meet your expectations, so you will need the advice of an experienced specialist to make the right choice.
We hope these drawbacks do not come as a surprise to you as the banking sector of any country is more or less fragile. Major banks that seem real strongholds fail, too! And if the disadvantages above are not above your risk tolerance, you can take a good look at the advantages of an offshore account:
- Offshore banks develop advanced banking systems as they are focused on attracting more international investors.
- If you have an account with an offshore bank, you can mitigate the political and economic risks back home.
- The tax rates in overseas banking institutions are very attractive, so you can generate more profit if you use your funds wisely.
- Banking secrecy in offshore jurisdictions is held on a substantially higher level.
- Offshore banks offer services to their clients which can neutralize the harm done by inflation.
- If you feel that you need enhanced asset protection, turn to offshore banks as they can be real citadels for your resources.
- You will be able to make the most of currency diversification to protect your assets against rate fluctuations and easily make wire transfers to any country
- The interest rates offered by offshore banks are good enough to draw international investors.
- Some investment products are disclosed to offshore bank customers only.
- Highly-reputable banks often turn down high-risk undertakings, while offshore banks accept them on certain conditions.
- Enjoy seamless 24/7 banking operations thanks to state-of-the-industry apps.
- A non-resident bank account owner can relax as the funds are stored in a safe place.
The upside looks really impressive, doesn’t it? However, it would not be complete without facts.
Benefits of Offshore Bank Accounts: Facts
Enjoy the safety of offshore banks.
They keep approximately 50% of the world’s assets, including those owned by large corporations. Offshore banks managed to achieve that remarkable result by choosing safe business models and investing prudently.
Offshore banks are strictly controlled.
The well-being of the nation in many offshore jurisdictions depends on the successful development of its financial system, so there are stringent requirements that offshore banks have to comply with: stronger balance sheets than on onshore jurisdictions, the risk of losing a banking license in case of non-compliance, and heavy fines in case of negligence.
The economic stability of offshores.
There are clear signs which show that the financial environment in your country is turning for the worse: there is more control of the assets, the owners of deposits in foreign currency are compelled to convert them into the local currency, or pension savings are nationalized. You cannot conceive something like that happening in the offshore jurisdictions.
Offshore banks ensure high confidentiality standards.
The information about your identity and bank accounts can be revealed to authorities on one condition: you are suspected of being involved in money laundering, drug trafficking, or other similar serious offenses.
In all other instances, your personal details are sure to be kept back by the bank even if the foreign courts expressly order to seize your money and disclose information about your assets.
Offshore banks will help protect your assets against inflation.
It does not mean that all you have to do is to deposit your money and wait: this strategy never works. You will have to invest in the projects that the bank will make possible for you: mutual funds, securities, offshore real estate, venture investments, multiple businesses – there is something for everyone.
Offshores offer lower fees for international transfers.
The fee for cross-border transfer may seem negligible until you make more and more operations to find out that the commissions added up to form an incredibly high amount. So if your company is going through harsh days and needs to make cutbacks, an offshore bank account may be the answer.
Visit the link above to find out more about the advantages of offshore bank accounts and reach our specialists to ask any questions that may arise. Opening an offshore bank account will be a smooth experience for you if you rely on our assistance!