What’s an offshore account? A step-by-step guide to banking internationally
What is an offshore account?
Are offshore accounts illegal?
Why do people choose offshore accounts?
- Planning a nomadic lifestyle
- Retiring in a different country
- Frequent international business trips
- Receiving payment in foreign currencies
- Owning property or other investments abroad
- Financially supporting family members in other countries
Send money abroad
International transfers with your N26 account are easy, fast and reliable.
International Money Transfer with N26What are the benefits of an offshore bank account?
- Tax efficiency: Offshore accounts often have the potential to help you save on taxes, especially when you're dealing with different currencies. The extent of these tax benefits depends on your specific situation.
- Convenience: You can hold, send, and receive money in multiple currencies. That means no more juggling exchange rates and dealing with multiple accounts.
- International financial advice: With an offshore account, you can access international expertise and investment advice.
- Security: There’s no need to open a new bank account every time you move. Instead, keep your money in a safe and central location.
What are the different types of offshore accounts?
- Offshore Bank Accounts: This is the most common type — regular checking and savings accounts but in a foreign country. They’re good for personal or business purposes and for managing your finances in various currencies.
- Offshore Investment Accounts: Designed for investment purposes, they allow you to invest in international stocks, bonds, funds, and other financial instruments.
- Offshore Trust Accounts: Trust accounts are legal entities that can hold and protect your assets. They’re commonly used for estate planning, asset protection, and privately passing wealth to beneficiaries.
- Offshore Business Accounts: If you run a business with international operations or transactions, offshore business accounts make your finances easier. They’re designed for particular business needs, including handling cross-border payments and assets.
Offshore banking: tax and regulations
How to open an offshore bank account
- Choose a bank: Look for a reputable bank in the country you need. Consider the bank's stability, services, fees, and accessibility. Contact the selected bank and they can give you more information on their account opening processes.
- Collect your documents: You typically have to provide the bank with proof of identity, proof of address, and documentation about the source of your funds — this is a measure to prevent money laundering. To open a business account, you'll also need a business plan.
- Submit your application: Send your completed application form and documents to the bank digitally or by mail, depending on their specific procedures. The bank will complete due-diligence checks in order to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.
- Make the initial deposit: You have to deposit money into your offshore account. The amount depends on the bank and the type of account you're opening.
- Access your account: Once the bank approves your application and receives the opening deposit, you'll receive instructions on accessing your account online or through other banking channels provided by the bank.
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