Offshore Bank Account
Offshore banking is not a shady practice of high net worth individuals who want to stash money outside the reach of the US government. An offshore bank account is a legitimate way to hold, diversify and access money abroad.
FATCA (Foreign Account Tax Compliance Act) regulations have made it increasingly difficult for expats to open or maintain foreign bank accounts. Many foreign banks refuse taking on US citizens as clients due to the high reporting burden. However, there are still foreign banks that welcome US citizens, and some of those are an excellent choice for offshore banking.
Advantages of an offshore bank account
Offshore bank accounts offer great benefits:
An offshore bank account shields your assets from litigation in the US. In addition, a foreign country is beyond the reach of the US government to freeze assets.
Banks in international financial centers offer a convenient platform to hold multiple currencies in one account. This reduces your portfolio risk and internationalizes your savings.
Foreign banks can be safer than a US bank because many countries have more conservative banking practices with strong levels of capital and liquidity.
Higher interest rates
Some international banks offer significantly better interest rates than banks in the US and much of Europe.
Ease of doing business in a foreign country
For example an entrepreneur could use a European bank with a PayPal account to collect customer payments for his virtual business.
With an offshore bank account you also have the ability to invest in foreign markets through an offshore brokerage account.
Best country for offshore bank accounts
There is no one best country that fits everyone’s needs. Each offshore jurisdiction has its own banking regulations and requirements for foreign investors.
We help you select the one that works best for you.
Reporting requirements for offshore accounts
Using a foreign bank account does not mean hiding assets from the IRS or US Treasury.
If the combined balances of all foreign accounts exceed $10,000 at any time during the calendar year, you must file an FBAR (Foreign Bank Account Report). If the offshore bank account is under a foreign corporation, you must file Form 5471, an Information Return.
Our offshore banking services
We can save you hours of research and the uncertainty involved with selecting a foreign bank. With our experience, we can select the countries and banks that make the most sense for your situation and banking requirements.
We can set up offshore bank accounts for both your personal and business banking needs. Some accounts can be opened remotely while others require an in person meeting with the bank. Global Expat Advisors can help facilitate the bank account opening.
As part of our tax services, we can also prepare all necessary forms and tax returns for foreign bank accounts.