Offshore investment account, what is it?
Many have probably heard of it, and really ask what it is. OffshoreCitizen will tell you a little more about what an offshore investment account really is, what we think about it, how and why to open it.
By definition, the term offshore means off shore. At the very beginning, it was used by the British when the English made their investment of money outside the island. However, there is no question here that your account may be available on an island in the Pacific, but you may be able to open it outside your country of residence.
Most people are prejudiced about what an offshore account really is and imagine that it is only for the wealthy. This is totally wrong, every individual is likely to have one. It is by no means worth having knowledge and relationships to open an account. It is possible that you have already heard that the offshore banks were unreliable while knowing that this is still false. In general, offshore banks do similar work to French banks, but what might be illegal is how to use the offshore account. Moreover, French banks are also offshore banks for people not living in the country. It has often been said that the offshore account is tantamount to mafia and dirty money, again, although it can be used for money laundering, it is not its precise function.
Why is it worth opening an offshore investment account?
First of all, an offshore account allows you to organize a departure abroad or to have good management of your activities with a country other than your native country. Thanks to an offshore account, you will have a great way to collect income, have investment rates higher than in France, but also to secure your wealth and your legacy. The creation of an offshore account will give you the opportunity to bypass a banking prohibition, it will allow you to continue your activities and administer your money without too much pressure and constraints. You will enjoy through this kind of account lighter taxation and more lenient than in France, to avoid the risk of over-taxation. But know that it depends on the country in question because it is likely not to be imposed at all.
How to open an offshore investment account?
The creation of an offshore company is often a question of a simple formality, on the other hand for that of an offshore account, it is a little more complicated and takes more time. Be aware that onshore and offshore banks practice the same KYC rule as Know Your Customer, which is also called CYA or Cover Your Ass, which means they have the obligation to cover and have enough information about their customers in order to justify their good faith if ever a problem arises.
If you opt for the first solution, you will have the bank’s standard offshore charges and also you will have the obligation to make the move. Its advantage is that only you will know the name of the bank.
For the second option, you will not have to move, all you need is a simple visit to a local branch of the bank. Know that it is in the habit of offshore providers to collaborate with 2 or 3 banks, which makes it easier to introduce near the banker. For an account opening offshore, you will have to pay between 300 and 2000 euros. After, the bank sends you by mail the documents for the confirmation of the opening of your account with the card access codes, those online banking. The safest is to destroy them as soon as you have had them. Also, made a request for electronic bank statements to the bank, it’s better than on paper. If the bank agrees, use a mailing address that is not the same as your home address.