Getting an offshore bank account is easier than it sounds. Whether you’re looking for an account in Singapore, a “compte offshore en ligne” in France or any other country, the truth is most countries are open to both residents and non-residents.
There are more reasons wherefore opening an account abroad is a good idea, whether you travel a lot, you want to diversify your money in more currencies or perhaps even run a business there. All in all, let’s see what it actually implies to have an offshore bank account and how you can get one.
First Steps
Some people are already banking offshore without even knowing it. For example, if you’re American, but you also have an account in Canada, you’re banking offshore.Now, when banking offshore, you need to start with the first steps.
Finding a reason. Are you banking offshore because you travel a lot to the respective country? Are you after investment opportunities that are tax-free? Maybe you want to start a business or perhaps buy a property. Once you have a reason, finding the right country is easier.
Researching jurisdictions. Based on your reason, chances are you can find more countries able to fulfill your needs. Come up with a list of jurisdictions that could make good choices, then start researching them individually.
Exploring bank deals. Once you’re set on a country, check out the top banks, but pay attention to smaller banks as well. They usually have lower fees. However, if you’re not a resident, you’re more likely to be successful with a big bank or a bank specialized in foreigners.
Check your eligibility. Most banks will have informative sections with what they require in order to open an account. For example, when looking for a “compte offshore en ligne” in France, you’ll usually need ID, proof of address and based on the bank, proof of income or immigration status.
Fees and deposits. Most banks will charge something. Some of them require a big deposit to open an account as a non-resident. Some others will come with monthly fees for maintenance, so take these expenses into consideration as well.
Gathering Required Documents
It’s nearly impossible to get an anonymous offshore bank account today, so banks will ask you for a form of identification. As a non-resident, chances are you’ll have to provide your passport. If you’ve already received residency, you might be able to use other forms of ID too, such as a driver’s license.Proof of address is also required. A mortgage or rent statement could help, but you’ll do better with a classic utility bill in your name. These are the classic requirements, but the list might be longer based on the bank and where you come from.
Proof of income. If you’re about to make a deposit, you’ll need to bring statements from your current bank to show where the money comes from. It’s a common technique to prevent money laundering.
Financial references. Some banks may require reference letters from your current bank, indicating a good relationship. Normally, you may have to provide statements over the past year.
Transactions. How you want to use the account is also important for the bank. Whether it’s for daily expenses or savings, be honest about your necessities.
Business documents. If you’re choosing a particular jurisdiction for its good tax rates and you hope to use the account with business purposes, make sure you open a business bank account. Company documents may also be required in this situation.
Additional verification could imply the requirement for other documents too, such as a letter from an executor if your money comes from an inheritance.
Most of these documents can be obtained without too much headache. Some of them may require getting in touch with a higher authority. If you need to prove your tax residency in a country, you’ll need a certificate from local tax authorities.
How to Apply Online
Not all banks allow online applications, but most do. However, some allow online applications to a certain point, meaning you may still have to go in person in order to complete the actual verification before opening the account.Ideally, you should be able to start the application online. Assuming you’ve already decided on a country and a bank, online applications usually involve completing a form. You'll need to provide personal information, contact details and eventually upload your documents.
Many banks allow starting the application online. The rest of the verification process can go in more directions. You might be asked to visit a branch in person, but you may also have to send your documents by post.
It normally depends on what you’re after. If you’re visiting that country anyway, you might as well walk into a branch. You can also find banks that do it exclusively online. They do reserve the right to call you up in a branch, so make sure your documents are crystal clear and there’s no room for misinterpretation.
Forms of Verification
Verification can embrace multiple forms, depending on the bank, local laws and regulations.Apart from the identification documents, proof of address and other documents, you'll also need some sort of video verification.
To play it safe, some banks will require you to see in person. Basically, everything else is sorted, but you need to turn up and prove your identity in order to open the account.
Banks working exclusively online will ask for a selfie. Upload all your documents and you may need to take a selfie. The verification usually lasts less than a day.
Some traditional banks may invite you to join a video call. You'll have to perform a few tasks to ensure there's no artificial intelligence software on. You may have to turn your head, move your hands and make other similar gestures.
Making a Deposit
Deposit requirements vary based on the bank and country, as well as your immigration status.When interested in a “compte offshore en ligne”, being a resident makes the difference. Residents can usually open accounts without being subject to big deposits. Sure, there may still be some fees and taxes, but overall, they can start an account with no deposit at all.
Non-residents are more likely to be asked for deposits. They vary widely. You might be asked for $1,500 or $100,000. This is part of your research. It’s pointless to be eligible for an account and have all the documents, only to realize you can’t afford the initial deposit.
Furthermore, deposits are usually made by bank transfers. Depending on the size of the deposit, you may have to prove the provenience of the money.
