How to Open Offshore Accounts
- 1). Research various countries and jurisdictions to determine where you would like to open an offshore account. Countries where American depositors and investors open offshore accounts include the Bahamas, Cayman Islands, Panama, Singapore and Switzerland. However, many other countries offer deposit and investment account options for American citizens. Consult with a professional tax attorney or accountant if you are unsure about which countries offer the best privacy and tax advantages for your financial situation.
- 2). Contact a bank or investment brokerage in the country where you want to open the offshore account. Request an application package and inquire about minimum initial deposit or investment requirements. Some jurisdictions allow you to open offshore accounts with investments as low as $5,000. However, countries like Luxembourg and Switzerland require investments or deposits of $200,000 or more.
- 3). Hire a professional tax attorney to review the application, minimum funding requirements and potential tax implications that the account will incur. If there is any language or a part of the application or documentation that you do not understand, have the attorney explain it to you before opening the account.
- 4). Complete the application and attach copies of your passport or other government-issued identification. If requested to do so, attach a certified or notarized copy of your birth certificate as well. Send the application and attached documents to the foreign bank or investment firm via an express courier service.
- 5). Wait for the financial institution to confirm receipt of the application and documents via email or letter. Once the bank or investment company approves your application, the firm will contact you with information on how to make your initial deposit or investment. In most cases, the financial institution will request a wire transfer to your approved deposit or investment account number. However, some banks or investment firms require you to send funds in the form of a certified cashier's check.
- 6). Send the initial deposit or investment amount to the bank or investment firm. Await confirmation from the institution for the receipt of the funds. Keep the receipt for an electronic wire transfer or cashier's check used to fund your account in case there is a discrepancy with the foreign bank regarding your initial deposit or investment.
- 7). Wait for the bank or investment firm to send you login details for online banking or investment management. Log in to your account to confirm balances and initiate banking or investment activities.
- 8). Review paper statements that you receive from the financial institution to ensure that balances are correct and that you recognize all transactions listed. Contact the bank or investment firm immediately if transactions you do not recognize appear on the statement.
Source...