Protect assets, grow your wealth, save on taxes, and more.
It’s easy to get wrapped up in the misconceptions surrounding holding offshore bank accounts, but we want to set the story straight about this tool used by individuals all over the world to benefit from more stable economies, new investment opportunities, and ideal banking regulations.
One of the biggest draws to offshore banking is security. It’s not for those looking to scam the system. Many individuals live in areas of the world where they do not feel completely safe to deposit funds into their home bank account. Do you trust your bank? Do you think that your money could be safer or that your bank could be doing more with your money? Maybe it’s time to try offshore banking.
Fortunately, people from all over the world can choose a country that has historically had higher regulations, transparent jurisdictions, and an all-around more secure banking system. This is also beneficial for those who have chosen to expatriate. While some expat destinations have a lower cost of living and overall better quality of life, some don’t have the safest banks, so individuals hold their money in an offshore location.
Let us dive into some other amazing benefits of offshore banking you may not be aware of.
It’s completely legal.
Don’t be alarmed. Holding a bank account in a different country as a foreigner is entirely legal. Many fear that with increasing regulations that they cannot legally obtain an offshore bank account. As long as an individual is staying tax compliant with the laws of their home country, then holding an offshore bank account is entirely legal.
If you need more information on the legality of an offshore bank account or need guidance with compliance, the Alpen Partners team has expertise in tax compliance guidance.
You can save big on taxes.
Speaking of taxes, one of the leading reasons smart investors and wealthy individuals seeking an offshore bank account is the tax advantages. When planned correctly, holding wealth in an offshore account can maximize your tax efficiency by holding your offshore bank account in a tax-exempt country.
Depending on the jurisdiction you call home, you may catch some tax breaks for holding your money outside of your tax jurisdiction. Some countries even offer incentives to foreign investors through favorable tax rates in order to attract outside wealth.
The tax treatment is one of the biggest reasons an individual may seek an offshore bank account. With an offshore account, it is possible to earn tax-free money in some countries. Many offshore banks allow you to work in another country and earn hefty capital gains with no taxes.
It’s vital for your asset protection plan
One of the best ways to protect expensive assets from the hands of a creditor is taking the assets to a jurisdiction that is out of reach. Valuable assets that one might worry could be in danger in the event of a lawsuit can be moved offshore to protect them. This includes assets of all kinds such as stock portfolios, precious metals, retirement accounts, and self-directed IRAs. Creditors who are after your money held in foreign accounts will run into numerous roadblocks.
The very first step of moving assets offshore is going to be opening an offshore bank account.
Asset protection plans may include offshore trusts or even an offshore company. Others hold assets in offshore LLCs that allow them to keep expensive assets outside of the reach of creditors. To sue an offshore business, many courts require a separate lawsuit in the foreign jurisdiction. This means that if someone is trying to get your money, they must also sue your offshore company. The new lawsuit will not consider the original lawsuit.
No matter how you take your wealth offshore asset protection, a foreign bank account is necessary.
You can take advantage of investment options.
Not only are you protecting your wealth when holding wealth offshore, but the foreign bank account can also even help grow the wealth. Many offshore banks offer top of the line investment services that guide investors to the perfect offshore investments for them.
Further, many feel restricted by the investment opportunities at home. Offshore banks typically offer a wide choice of funds and investments that aren’t available in your home country. It’s an easy and great way to diversify your portfolio. This includes new and developing sectors, as well as developed industries that aren’t available everywhere. Also, many invest in foreign real estate as a way to help with gaining residency.
It’s easier than you think
Many people believe that there is an unnecessary amount of hoops to jump through to have an offshore bank account, but in most cases, this is not true.
Opening a bank account in a different country can be easy, usually completed from home via the internet and courier. Very rarely do banks require applicants to participate in a one-on-one meeting in person. In many cases, individuals provide specific required documentation of identity, letters of reference, and make the minimum deposit.
Obviously, not all banks are the same, and some countries are more strict about who is allowed to have an account. It is crucial to seek the help of a legal and financial professional to help you every step of the way.
Get the help you need today.
As you have read, offshore banking cannot typically be done alone. Guidance is often needed to find the right jurisdiction, knowing exactly how to open the account, and staying compliant.
Alpen Partners partners with banks around the world, with the most significant and prestigious being in Monaco and Switzerland. Building on many years of experience in private banking in Switzerland, Alpen Partners Wealth Management International AG provides investment advisory services to U.S. clients. Swiss banking is highly regarded around the world, well known for being sophisticated and discreet.
Additionally, Alpen Partners is working with the leading tax and legal specialists around the world to advise its clients on the best structure to protect their assets. Working with these specialists, Alpen Partners has developed strong expertise in offering asset protection strategies for clients from various industries.