Offshore banking has been an important topic for years, even now, in the midst of the global pandemic due to COVID-19, there has been a great interest of many companies or citizens in owning or opening an offshore account in other latitudes.
The reasons are many and among the most common we can mention:
Among the countries, from our experience, that we have identified as the most attractive to open an offshore account we can mention:
The banking secrecy laws in Switzerland made this country a very attractive place to apply to open an offshore account. However, a few years ago the IRS (Internal Revenue Service) invaded the famed privacy laws of Swiss banks and all foreign transactions made by any person, especially US citizens, are immediately reported to the IRS.
So, if you are an American citizen, Switzerland would not be the best choice. However, in addition to the above, since 2017 Swiss banks are required to automatically report tax information to the national authorities of the home countries of their banks' customers. This bracket includes 80 territories, among them all the countries of the European Union, the United States, etc. However, the vast majority of developing countries in Latin America, Asia and Africa are excluded.
The benefits that continue to make Switzerland a great choice can be summarized as follows:
The Cayman Islands is a very small country in the Caribbean region considered as the "Switzerland of the Caribbean" due to the volume of business it maintains with different countries worldwide. It is a safe and accessible destination for both small and large investors. Keeping an account open in the Cayman Islands is inexpensive. It offers speed, privacy and security. And although bilateral agreements have been signed since 2014 with 44 jurisdictions around the world resulting in the elimination of banking secrecy), the rest of the world's jurisdictions can still make use of that secrecy.
One of the most stable and secure international banking centers in the world. They have the largest free trade zone for exports and imports, as well as a robust and competitive financial sector. The most striking thing about Singapore is that in recent years it has developed an advanced private banking system that has positioned itself internationally as a wealth manager in the Asian market.
The best offshore banks currently in Singapore are offering products and services tailored to US, European and Australian citizens and companies, including so-called multi currency accounts. As is the case in most offshore financial centers, interest earned on bank deposits and foreign income, including also dividends on foreign securities, are exempt from taxation in Singapore. There are also no taxes on capital gains and no state duty on bank deposits and investments.
Privacy is one of the most outstanding features of this jurisdiction. Highly recommended for American investors, it is a small Caribbean country and offers privacy to its foreign investors. There are two types of banks in Belize: the so-called local banks, which are for Belizean residents, and those known as offshore banks, specifically for foreign investors. One thing that Belize offers that makes it attractive to foreign investment is its economic and political stability. A market chosen to diversify assets.
It is also a safe destination, as all banks in Belize are required by law to maintain a liquidity ratio of 24%, which is much higher than in other jurisdictions. Belize's regulatory framework to prevent money laundering and terrorist financing is very strong. In Belize, investors are required to disclose some vital information about themselves and their businesses. In summary, the fact that it offers a flexible corporate system, with English as the official language; its local currency is pegged to the dollar; its liquidity and good reputation; as well as confidentiality, make it a popular and highly recommended jurisdiction.
Panama has always been known for its international banking center. Here are the advantages why we consider Panama as one of the most competitive jurisdictions to open your offshore bank account:
If you are interested in opening a bank account in Panama as a foreigner you can consult the requirements here. Do not hesitate to contact us if you are also interested in doing so in other jurisdictions.
