Offshore account for individuals: why do you need it and where to open it?

Events taking place in the world during the last 3 months contribute to the fact that the number of people willing to open an offshore bank account for individuals is growing exponentially. This trend is related not only to the fall of the ruble against the dollar and euro, but also to the desire of ordinary citizens to place their savings in the safest place possible.

What is an offshore account and what are its advantages?

In the classical sense, an offshore account is a bank account opened in a special economic zone, the laws of which allow preserving the anonymity of the owner, as a result, to hide part of his or her income and minimize the tax burden.

However, recently such interpretation has undergone significant changes. Traditional offshore zones have lost their attractiveness, after being included in the "blacklist" of the European Union. So any individual account opened with a foreign bank has become offshore.

The advantages of a foreign account comprise the following:

• Most foreign banks can offer their clients interest on deposits, which is much higher than in their home country;
• A wide range of remote banking products and services;
• The economic and political stability of many jurisdictions creates a sense of stability and security;
• High level of confidentiality and protection of clients' funds from force majeure situations.

There are disadvantages, as a rule, too. And they are primarily related to high tariffs for account opening and maintenance. Most top foreign banks have requirements for minimum account balance and the formal right to detailed verification of personal data of their clients.

List of documents required to open an offshore account

• The original or, in case of remote opening, a certified copy of an identity document;
• Data confirming the place of permanent residence (most often receipts for payment of utility bills);
• Certificate or statement confirming the appropriate level of income and its origin;
• A letter or statement containing information about the purpose of opening and using an account.

The security services of any licensed bank have the right to request from a potential client an additional package of documents concerning his or her personal data, types of business and professional activity, as well as the sources and level of income.

Where to open an offshore account in 2020

When choosing a jurisdiction to open an offshore account, one should pay attention to its geographical location, current political and economic situation, position on the world arena and tax policy. It is equally important that the servicing bank is linguistically accessible and friendly to non-resident clients. In 2020, the top five countries to open an individual account are: Hong Kong, Singapore, Czech Republic, Belize, and Georgia.

Certainly, there are other beneficial jurisdictions and their advantages and disadvantages should be analyzed first of all from the standpoint of a particular client. The IT-OFFSHORE company will help you decide upon this difficult matter. Experienced employees will tell in detail about all the benefits and pitfalls of an offshore account, as well as wil help with its opening.