5 Things You Must Know Before Opening an Offshore Bank Account

Opening an offshore bank account is a very attractive proposition these days indeed. Who wouldn’t want an easy and anonymous access to funds that are safely deposited in a country where the economy is stable and the interest rate is very high? Opening an offshore bank account proves to be quite a lucrative investment on its own. And much more so if you were able to make the necessary investments to fully maximize the profits you make with your money.

However, there are certain things that you must know first before you go out and open an offshore bank account in a particular country. You must:

1. Know the legal laws about banking in a certain jurisdiction

Don’t be overeager to take your money to an offshore bank without knowing how that bank functions and what rules they are governed with. This is the most important aspect of offshore banking. Remember that bank laws from one country, jurisdiction, and continent vary greatly from one another.

2. Assess your benefits

What’s in it for you if you open an account at an entirely different jurisdiction? Would you be able to earn a higher interest rate with no withholding taxes deducted? Will your company gain the full advantage of anonymity if you open an account with an offshore bank? Be guided by the very benefits that you’re looking for when choosing an offshore bank to open an account with.

3. Determine the interest rate and taxes involved

It is quite important that you know exactly how much your money would be earning and what taxes you have to pay for saving your money at that particular place. You must be sure that the offshore bank can give you better figures than any local bank.

4.  Find out the ways to open the account

Some offshore banks require the individual or company representative to personally open the account at the bank. This means you would have to fly to the country where the bank is located. Some banks accept papers sent over the internet or fax. Know how the offshore bank handles the application papers and be duly informed on how to go about it.

5. Be sure that the money can easily be moved around

Most individuals and businesses that are looking to open an offshore bank account do so with the intention of easy moving of funds from one recipient to another. If this is your main purpose, determine if the bank don’t enforce very strict regulations about transferring certain amount money to and from your offshore bank account. 

AGP law firm: Cyprus corporate services