Heavy taxation can take its toll on your wealth, but by setting up an offshore banking account, you can save your wealth. Before you engage in financial transactions in your new country, understanding facts about expat banking will be necessary.
The laws concerning expat banking can be quite complicated. Countries have different rules, with some more stringent than others. The proceeding information will guide you through the basic process.
How to Set Up a Bank Account
Most will not require a credit line or even check credit. But you must show some evidence showing your link to the country. Remember that some nations have very strict rules concerning possible offshore accounts. However, some are not strict about these accounts.
When you are ready to open an account, show proof of residence and employment. You can show the last few months pay slips. Proof of residence may come in the form of documents showing you own the property. Or you can show the rental contract. It is best to use banks that are common to both nations. The transfer fees are lower and the transactions not so strenuous.
You have to pay taxes in your new home. After the money in your account passes a specified amount, you will have to pay more taxes. This does not include the taxes you have to pay in your home country.
This usually means opening up all your assets abroad. Inability or refusal to pay can lead to criminal prosecution. With some international banks you can get a tax free transfer.
Benefits of Offshore Banking
By setting one up, you will be free of the heavy tax burden that the US imposes on its citizens. As long as you have a US passport, you will be taxed regardless of where you are living right now. That is why offshore accounts are proving to be very attractive.
There are several countries to choose from. One of them is Belize. It has a tax free residency program for foreigners who are retiring there. Another popular destination is Nevis because it is a tax haven. The country is known for its easy rules on banking, assets and accounts.
The Cayman Islands still remains the top choice for businesses, trusts, hedge funds and other accounts. Or you can go to Dubai with its very friendly tax laws. There are very little restrictions on moving cash in and out of there. No taxes are imposed on foreign-owned income.
There are many companies that can set up an offshore account. However, you need to examine each one carefully. Since you will be moving your money, ensure that the company you work with can be trusted.