Investments: The countries with the best offshore bank accounts for 2021
If you partake in cross-border transactions of any size, you will be used to managing different currencies in order to stay on top of investments and other regular payments either into or out of your bank account. However, for most of us, if there is a simpler or more effective way to do something, we jump at the opportunity, and in this case, it is in the form of an offshore account. While it can be said that for most of us, 2020 was a year in which the only transactions made were essential in the midst of the pandemic, yet the global vaccination rollout is beginning to provide hope for the near future. Consequently, this allows us to think about investments across borders once again, perhaps meaning there is no better time than now to look into your best options for offshore bank accounts for the remainder of 2021.
What is an offshore bank account, and can I get one?
Before we get into the best accounts for this year, it is important to mention what all of this is about. If you have never heard of offshore banking, simply, it is when you obtain a secondary bank account, yet it is in a country where you do not live. It sounds intriguing, however, there are many rules and requirements in order to ensure those who open such accounts have legitimate reasons to do so, some of which include, the person lives abroad and therefore has an account where they live and also in their home nation, they own property or other investments in a different country, and also if the person is paid in a foreign currency for their job.
Some accounts also have monthly costs to keep it open, and many have tax benefits, so if you encounter any such savings as a result of the account, you must declare it, so bear this in mind too!
The best places for offshore accounts in 2021
1. One country that appears on most lists consistently is Switzerland. Situated in Western Europe the country is often seen as a financial powerhouse in the continent. In relation to offshore banking, there are rigorous criteria which ensure they only take on clients who they can trust, meaning if you are to open an account there you can be sure of the service you will receive in return. Swiss banks also have tax benefits due to there being low capital gains and income taxes on investments as well as the banks’ reputation for privacy, the combination of both making the country a good option for 2021.
2. Another country which has a good outlook in terms of offshore banking this year is Belize. With far higher liquidity rates than the United States, there is an immediate attraction to the nation, as well as the official language of English which furthers the need to consider it as a top option for people across the globe. There is also a relatively low starting deposit needed to set up an account, presenting a more affordable option for those who do not necessarily have massive disposable income yet need to open an account offshore.
3. The Caribbean island, forming half of the country St. Kitts and Nevis, is home to what are considered globally leading offshore bank accounts which come with various benefits. To name a few, you will be sure of high levels of confidentiality, stability through local currency being in a 1:1 ratio with the United States Dollar (USD), as well as residency programs which are an enticing option for those who are looking to relocate and or retire abroad. Nevis is seen as a leading option due to the relative ease of the process, although there is a US$10,000 minimum to open the account.
So, if you are interested in finding out more, and whether or not you can qualify for an account in one of the countries mentioned above, get in touch with us today. At Criemerman, we see it as our duty to help our clients every step of the way in their cross-border activities, and we would love to make you the next.