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Tax Engineering

Offshore banking

Offshore banking and offshore bank accounts in particular are very useful financial tools when it comes to tax saving and anonymity. What is an offshore bank account? Offshore bank account is an account opened outside of country of residence of the beneficiary, in case of personal accounts, and outside of the country of registration of the company, in case of corporate offshore bank accounts. Usually these accounts can be opened remotely and are not subject to any local tax.  

Recently, with the approbation of automatic banking information exchange treaty the privacy of banking sector in many countries has been shattered. OECD member countries have agreed to report the information about personal and business bank accounts to tax agencies of the beneficial owners. However, not all of them have signed bilateral agreements among them and therefore not all of them will exchange the banking data. Before opening a bank account you have to check the list of offshore jurisdictions that have signed treaty with your country of residence in order to avoid the exchange of your banking information. Please note, that the banks report only the balance you have on 31st of December and not the list of all the transactions you have made along the year.

How to withdraw money from offshore bank account?

Customers can withdraw their money from offshore bank account in their country of residence with debit or credit card. When the client opens offshore bank account, he requests a VISA or MasterCard debit or credit card to make purchases or withdrawals of cash. Can I withdraw money at any ATM in my country of residence? Yes, 99.99% of ATMs accept VISA or MasterCard and you can withdraw cash without any problems. What fees will be charged to my card for each withdrawal? Depending on the jurisdiction where the bank account is opened, you may have higher or lower commissions. Normally the commissions that are charged for the withdrawal of money are from 2.5 to 3.50 euros per each 600 euros.

Another way to have the money from your offshore bank account

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What is a self-loan?

The main job of banks, whether in a tax haven or in a high-tax country, is to lend money in exchange for some interest. Offshore banks are not an exception and also lend money to individuals and companies with "very good" conditions. Nowadays, with the economic crisis, banks do not lend money if they do not have a proof of an absolute solvency of the client and as a result it became difficult to obtain a loan. If the client is suitable and passes all the credit controls of the bank, he will request a pledged deposit in a bank account or a fully blocked investment fund. Suppose a client wants to apply for a loan of 100,000 euros. In order for the bank to provide you with the loan, you will be requested to block a deposit in the account for total amount of 50% to 80% of t

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Offshore private banking

Offshore private banking is one of the minor aspects of the well-known private or street banking. Private banking is one of the essential offshore services provided to reduce taxes and perform proper tax and hereditary planning. It is a type of banking exclusively for people with a high purchasing power who need special attention and personalized service for tax issues and management of their assets. The minimum amounts required to become a private banking client vary depending on the country, in Switzerland the client must have a minimum deposit of 1 to 2 million Swiss francs and in Spain the minimum deposit should be minimum 100,000 to 300,000 euros.

Private banking is a sector with a lot of competition and what customers value the most is c

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How can I deposit money to my bank account?

Is it legal to deposit cash to a bank account? What are the advantages and disadvantages of depositing money to your bank account? Depositing cash to a bank account is very common in Latin America since it is very usual for people to collect their payroll or make payments in cash for the mistrust generated by banking systems and governments. Therefore, it is very common in Latin America to open a first current account with 40 or 50 years of age.

How can you deposit cash? The process of depositing cash is very simple and fast, you just have to go to a bank and deposit the money in the bank. Depending on the amount you want to credit, the bank can request contracts t

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What is a bank reference?

A bank reference or a bank certificate is a document issued by the director of the branch on behalf of the bank where the ownership of the customer's bank account is certified. Here you can see an example of bank reference or bank certificate in Spanish and English for the opening of an offshore bank account.

In English

Bank reference in english


In Spanish

Bank reference in spanish


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Open bank account in US dollars

Opening an account in US dollars is easy. As you know in Venezuela, Argentina etc. there is an exchange rate imposed by your governments. Therefore a perfect way to obtain currencies such as Euro, US $, GBP, Yen etc. is by opening an offshore bank account in Saint Vincent and the Grenadines. In reference to your questions I make my following comments:

  1. The minimum deposit for opening the account is $ 200 and the cost for opening the offshore account without physical presence in Saint Vincent and the Grenadines is 495 euros.
  2. The bank will give you a MasterCard or Visa debit card. A credit card can be provided if you have a good credit history. The delivery of the cards to
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What is a shell bank?

Browsing on the internet one comes across the information about financial institutions that claim to be banks, correspondent banks or payment entities but once the bank account is opened and the client deposits money in cash or by wire transfer, the money and the entity disappear. If this is your case you have just been a victim of a shell bank fraud. What is a shell bank? Shell bank is a bank that is incorporated in a country, in which it has no physical presence, it is not regulated by its central bank and may not belong to any regulated financial group.

To prevent a fraud of a shell bank in an offshore or onshore jurisdiction, customers must follow these steps:

  1. Request the bank information from the financial commission tha
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Bank account for gambling license

Opening a bank account for a company that develops gambling activitiesis complicated but not impossible. Offshore banks take many precautions when opening a bank account for gambling companies since these are businesses with a high risk of tax fraud. 

The countries that can open a bank account for a company with a gambling license registered in Costa Rica are Mauritius, Bulgaria (SEPA), Romania (SEPA) or Hungary (SEPA). Bank accounts can be opened with the SEPA banking protocol in the European Union and may operate legally with a gambling license.

Bank account for a company with gambling license

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Requirements to open offshore bank account

The requirements to open an offshore bank account personal or business are the following:

Requirements to open offshore personal bank account

Copy of Passport
Certified by a notary or notary public
Copy of Personal Identity Card (DNI)
Certified by a notary or notary public
1 copy of a utility bill not older than 3 months
Electricity, water, gas, telephone or bank statement
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Control over the money in offshore bank account

Yes, the client has access to all offshore bank accounts he has since all the banks in the world have online banking and all their offshore investments can be perfectly controlled from the country of residence of a client. What the clients apprecite most is the security of asset protection structure and banks really fight hard to achieve it. That is why all offshore banks invest in creating sophisticated online banking offering the client the possibility to control their investments 24/7.

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Bank loan for business

The denial of loans requested by businesses is quite an every day situation, whether it is requested in a country of high taxes or low taxes. It is in the hands of the bank to determine if you are a person or a business eligible to receive a loan. The bank takes carefully their clients through analyzing their information and then the risk department decides whether the loan is given or denied.

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What are the guarantees of banking secrecy?

Banking secrecy has almost disappeared in more than 100 countries. The latest international regulations on the exchange of tax information has led to the exchange of personal account data starting from January 2016. Business bank accounts will not exchange financial information if the company has a bank account balance of less than $ 250,000 as of December 31. The alternatives that exist to avoid the exchange of automatic information are to open an offshore company with several bank accounts or use debit card issuers. These last entities are not obliged to report information and it would be a good solution to have privacy.

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What does Due Diligence mean?

Due diligence is an investigation carried out by the Compliance Department of a bank, financial entity, credit institution or payment entity with the objective of assessing the viability of a natural or legal person and preventing the money laundering of illicit origin. The FATF (Financial Action Task Force) demanded the due diligence of the clients of banks, lawyers, auditors, tax advisors, jewelers, gaming activities, real estate and notaries to avoid transactions related to the laundering of money of illicit origin. Governments have been responsible for transferring the responsibility of Due diligence to prof

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How to transfer money to offshore account?

Transferring money to an offshore bank account is completely legal and you do not have to be afraid when transferring your money. The problem arises when the person who wants to transfer the money to his account did not declare this funds to his tax authorities. We recommend that you declare your bank account to your tax authorities and then through double tax treaties reduce the taxes that you have to pay in your country of residence.

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Financial entity obliged to exchange banking information

It is a financial entity that has the obligation to communicate automatically banking information of companies and individuals to the tax authorities of the countries that have signed a bilateral agreement with the country where the financial entity is registered. Currently, more than 100 countries have signed the automatic information exchange treaty but not all countries are going to sign bilateral agreements with each other. The financial institution is obliged to inform whenever both countries sign mutually a bilateral agreement.

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What is a financial entity?

We can define a financial entity as an entity that guards funds, deposits, investments or an insurer entity. Financial entities are characterized by receiving and providing credits to third parties. An example of a financial entity of recognized prestige could be Bank of America, Chase or Bank of China.

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What is a custodial entity?

Custodial entityis a regulated entity that has financial assets of third parties, whether of individuals or legal entities for the development of its economic activity.

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What is a deposit entity?

A deposit entity can be defined as any entity regulated by the central bank of the country where it is registered with the objective of accepting deposits in order to carry out its financial activity.

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What is an investment entity?

An investment entity is an entity regulated by the central bank of a country where it is registered with the aim of investing the economic resources of a client to his favor. Investment entities are specialized in investing the client's money in monetary market instruments, certificates of deposits, derivatives, currency exchange (Forex), index-based instruments, securities or futures trading in commodities. Investment entities may make investments in favor of a single client or collective groups. Investment entities make investments in countries with high economic and legal stability. Currently the countries that attract the highest volume of investments are New York, London, Japan, Hong Kong and Singapore.

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Financial entity not obliged to exchange information

A financial entity that is not obligated to communicate banking information is a financial institution that presents a very low risk of tax evasion. Financial entities that are not required to report banking information automatically to tax agencies are: 

  1. State entities, regulated international non-profit organizations, and central banks. If any of these entities carries out a commercial activity for a third party, the entity is obligated to communicate information. 
  2. Large-share pension funds, restricted participation pension fund, pension funds of state entities, pension funds of an international non-profit organization or pension funds of a central bank. 
  3. Payment institutions issuing cre
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What is the central bank?

The central bank is the main bank of the state that acts as intermediary between the government of the country and its financial sector. Its main functions are national currency issue, banking sector regulation and supervision of all monetary operations. All financial entities registered in a territory of a country are controlled and monitored by the central bank. Also the central bank controls national interest rates and the amount of money in circulation.

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New bank account and pre-existing bank account

The new automatic banking information exchange treaty regulations identify two types of bank accounts: new bank accounts and pre-existing bank accounts. The difference between both accounts is: 

  1. New bank accounts: These are the accounts opened in a financial institution regulated by a central bank as of January 1, 2016. 
  2. Pre-existing bank accounts: These are bank accounts opened in a financial entity regulated by a central bank before December 31, 2015.

Depending on the year the bank account was opened, it will be reported or not to the tax authorities. 

New and pre-existing personal accounts: The regulations identify two types of accounts, one of

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Open offshore bank account in Danske Bank PLC in USA

Yes, you can open a bank account in Danske Bank PLC USA, however the success of the process depends on the banking officer in charge of opening your bank account. The bank decides if it opens the account or not depending on your nationality, nature of the business, reasons for opening the account. Also please take into consideration that in general it is very complicated to open a bank account without a physical presence in a financial institution of United States. If you are of American nationality all the banks in the world are required to inform the IRS that a person with an American passport has requested an opening of a bank account. As a result, many banks have decided not to open bank accounts to individuals and co

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