Opening a bank account abroad is the essential part for conducting collections and payments between individuals and companies. What is an offshore bank account? Defining the offshore account concept is very simple. It is the process of opening of a bank account abroad that is not subject to any type of tax but is subject to fiscal obligations in the country where the client is resident. Currently with the latest automatic information exchange regulations, banks, OECD member countries and tax agencies have agreed to report and exchange banking information of individuals or companies. Depending on the amount of money you have on December 31st and whether it is a personal account or for a company, the bank account will be reported or not. Offshore bank accounts, even if they are reported, will be exempt from taxes. However, an account being reported has nothing to do with the tax obligations that a natural person or company has in a country free of taxes. That is, if a non-resident person has an account opened in Belize, the Belizean government will report information about the holder of that account and the balance it has on December 31st but will not force him to pay any tax for that account. Therefore tax-free countries exist and will continue to exist.
Types of bank accounts
The banks can be classified in two groups: Banks that take risks and banks that do not assume risk. That is, there are banks that may be able to grant you a credit or mortgage and other banks that do not usually give loans or mortgages but accept deposits under very low interest rate. Banks in offshore financial centers are usually protective towards its clients since the risk of fraud due to non-payment of a loan is very high since the client is not resident in the country. The types of bank accounts that we can find are: current accounts, savings accounts, foreign currency accounts, investment accounts, Bitcoin accounts, or Ethereum, bank accounts for card collection. In this section you can see the advantages of opening an offshore bank account, learn if it is possible to open an offshore bank account so that you can be granted a credit or a mortgage, be informed of the banking information treaties and be able to optimize your business and international investments.