Selecting an Offshore Bank

Don't be deceived by the prestigious look of a bank. Many offshore banks rent their offices in a prestigious looking building for appearances sake. The first thing you should be looking at is how much money they manage. A quick web search will often help in this endeavor but sometimes you will need to call the bank itself. Another way to analyze a bank is to call the bank and ask how long it has been in business. Generally offshore banks that have been around for a long time also have significant funds under management. Don't touch a bank without 30 million dollars under management. Banks with at least 100 million or more under management are much safer.

Getting Approved

The best banks often require introductions. Just walking in off the street and opening an offshore bank account is not an accepted way to open a bank account like in Europe and North America! They will be polite and take your banking application but it will NOT be approved. Smaller, up coming, banks will take your money but BEWARE as many offshore bank accounts are not protected by the Government as is the case in the United States, Canada and parts of Europe.

Getting an Introduction for an offshore bank account

So how do you get an introduction? The best way is to talk to the local person you have had contact with. If you have been looking at real estate, ask the agent helping you to introduce you to his bank. Most local people will also be able to help you determine which banks are the oldest and most reputable.

What you will need to get the offshore bank account open

After the introduction, the rest of the process is a formality, assuming you have normal banking relations somewhere else. The bank will require you to get a letter of reference from your previous bank. You will also need to provide identification including your passport and other important ID.

Protecting your money

Some countries should not be trusted for banking. Ask around. Get connected with the local expat community and see what they say. Sometimes it is much better to keep your serious funds offshore in a tax and asset protection jurisdiction like Panama, Bahamas, Switzerland, Belize or the Cayman Islands. Just open a local bank account to deposit your pay. Keep only your operating money there and transfer by bank wire the rest to your offshore account. You may even want to setup an offshore corporation. For example, Panama has bearer share corporations that can also own a bank account. This can be very strategic for those who earn more than their expat tax allowance.