Bank accounts

 

Many expatriates arrange their financial affairs around two bank accounts: A local currency bank account to fund their day-to-day living expenses and an offshore bank account in which to receive split salary and accumulate savings. This account can also be used to settle any outstanding home liabilities. It is generally advisable to keep most of your money offshore where it can tax-efficiently build up your wealth. For Private Banking Portfolio management click link.

 

At the simplest level, you can have a straightforward offshore current bank account with chequebook, credit and debit cards which can be denominated in Euro,GBP or US$. This is then a good place to save your excess income and pay bills which you might still have including mortgages. Various types of account are available to suit your means and needs; these include instant access accounts, fixed term deposit accounts with tiered rates of interest, and fixed and variable rate accounts.

 

The need for offshore bank accounts is probably the most basic client requirement we fulfill, once open it can used to feed the regular savings plans we offer.. Due to the transient nature of “career expatriates� it is often essential to have one bank account that does not change, regardless of your newest posting. We have strong relationships with most of the major offshore banks, and can aid you in setting up your account in a few weeks.

 

Banks in offshore centres generally pay deposit interest gross rather than net of tax. And you have access to a greater choice of specialist accounts in the offshore world.

 

As with all forms of financial services, it's vital to identify the right provider to guide you through the maze of products and services available on the market. It's as important offshore as it is onshore to place your money with a bank or financial institution that's well known. A familiar European bank, for example, will have its reputation in Europe to protect, and so will extend an extra measure of control over its offshore subsidiaries.

When you are banking offshore, you need to be able to communicate easily with the bank holding your money, if you have an offshore company it is even more important. If you plan to communicate by telephone, you may need to set up a password. Or you may be content to communicate by letter. You will find that most offshore financial institutions offer 24hr Internet banking to give you instant access to your account at any time.

 

 

 

Whatever your financial circumstances, as an expatriate you would be advised to examine the possibility of opening an offshore bank account, in order to take advantage of the tax efficiency and enhanced confidentiality that this provides. No tax is payable on interest arising from money held in an offshore bank account, so even if you are just looking for somewhere to receive funds remitted from home, or have your salary paid into, this has to be a plus. In most cases it would also be useful to set up a bank account in your destination country (where you will be living or working most of the time), from the point of view of conducting day-to-day transactions more easily. You could arrange with your employer to have part of your salary or expenses paid into your offshore account, and part into the local account. Offshore accounts can usually be in a range of hard currencies, but the local account may have to be in the local currency: having two accounts means that if the value of the local currency fluctuates greatly, or if you are taxed locally on money received, then you are protected to a certain extent

 

Increasing advances in encryption techniques have meant that many offshore banks offer online banking services, which are ideally suited to expatriates.

 

To a great extent, this depends on your personal and business circumstances including residence, personal wealth, and lifestyle, future tax planning structures, investments, and relocation plans. We can assist in opening accounts based on your circumstances.

 

The requirements and length of time it takes to set up an offshore account are dependent on the amount you are proposing to invest, and the size of the offshore institution with which you are dealing. Using our services we can reduce the time factor considerably. In all cases you will need to provide the following documentation: signature card, notarized specimen signatures, notarized copy of passport, bank reference, and utility bill showing residential address.

 

Not if you are sensible, no! It is always better to regard offers and institutions which seem ‘too good to be true' with suspicion, as they generally are! You should use well established institutions and regard with skepticism interest rates or benefits which seem ‘exceptional'

 

The rate of return that you can expect on your savings depends on several factors. The interest which you will accrue depends on the amount invested, the length of time for which it is invested, and the individual institution and jurisdiction. However, it is worth noting that higher rates of interest are a benefit which does not really come into play in the general field of offshore banking; these can be expected in a private banking relationship involving a very substantial investment. More of an issue is the currency that you decide to keep your assets in, and the relative strength or weakness of this at any given time. You may decide that it is easier to maintain your savings/income in whichever currency your liabilities are paid, or you may decide to examine the status of the various currencies, and proceed from there.

 

Depending on your needs, there are many ways of obtaining access to your money. This can be done by post, courier, fax, telephone, over the internet (IF sufficient security measures such as encryption capabilities and protection against account losses due to deliberate interference are in place) or bank wire transfer. It is also worth noting that most offshore banks will not accept cash deposits. However, if you have transferred all the capital you want offshore, by far the most convenient way to access your savings is by using an offshore credit card

 

In a great many cases, an offshore card can usually be applied for at the same time that the account is opened. The majority can be used both to withdraw money from ATM machines worldwide and to pay merchants, in much the same way as an onshore card. Many cards offer additional benefits such as insurance, and card/cash replacement

 

There are additional administrative and transactional costs to bear in mind, and there may be charges for services such as use of ATM. The rate of return on your cash will also be significantly lower than could be expected for other types of offshore investment but you do have access to cash 24/7. For this reason, offshore debit and credit cards can be useful for everyone.

 

Offshore is used to describe financial activity that takes place within the regulated environment of jurisdictions such as Jersey and Isle of Man. The term ‘offshore' is used because many offshore centres are literally ‘off the shore' of a larger mainland jurisdiction and in the past they would attract much of their business from there. However, not all offshore centres are islands. They can be completely landlocked, or they can be designated areas of larger jurisdictions which have been granted special tax privileges. For example, Jersey is an island, Luxembourg is landlocked and Dublin’s International Financial Services Centre is an area of the city. An offshore centre is a small jurisdiction (usually governed independently of the UK) where tax rates are low for residents, including banks and other financial institutions, and often non-existent for non-resident savers and investors.

 

Many offshore centres are as well regulated as the UK these days. This is particularly true of the offshore British Islands such as Jersey, Guernsey and the Isle of Man. If you choose a different location however, you'd be wise to check on the level of protection as regulations do differ.