What is An Offshore Bank Account?

30 years ago, Pablo Escobar came to Switzerland and Liechtenstein with his white Rolls Royce and pallets full of cash bills. Swiss bankers counted his money with the money counting machines for multiple days. Nobody asked questions. Everybody was happy to open another Swiss anonymous numbered bank account. The truth is that is history. Today, we have a completely different situation.

Nevertheless, the misconceptions with such Goldfinger bank accounts enjoy a mythical status until today. Every week, I receive requests for offshore bank accounts with the same question. Can you help me hiding non taxed money in Switzerland? Can you make my money invisible to the tax man? The reality is, such times are definitely over. The laws have changed.

Swiss bankers are scared of doing business with criminals. They are very selective with clients. The Know Your Customer Rules became very strict. The goal of this video is to eliminate the misconceptions on offshore bank accounts. I will explain exactly what are offshore bank accounts today 2019. You will see the reasons why more than 30% of global private wealth is still today managed and protected with Swiss banks. I will show you the advantages of having offshore bank accounts legally.

Don’t put all of your eggs in one basket

Offshore Bank Accounts are representing the instrument you need for international asset protection. An offshore bank account is located out of your country of residence. Having 100% of all your assets located in your home country can be a fatal mistake. It’s like having all of your eggs in one basket. You should disconnect your assets from the influence of your country and the courtrooms. Today, authorities first shoot and explain later. If you are involved in a lawsuit and all of your accounts at home are frozen you will be more than happy if you can dispose of assets on your offshore bank accounts, in a secure jurisdiction out of the influence of your home jurisdiction.

Since I made 2 videos on the Centurion AMEX Black Card, frequent requests are coming from the USA asking for the opening of Swiss offshore bank accounts. The last 2 years, Swiss banks and Swiss asset managers applied for the license issued by the Securities and Exchange Commission in the USA, better known as SEC. In order to onboard US clients, Swiss banks and asset managers need to be SEC licensed. Why are North Americans opening their offshore bank accounts in Switzerland?

North Americans are coming back to Swiss banks mainly for asset protection, global diversification, and better global investment skills in global and emerging markets. Banks in the USA and in the European Union are not well capitalized and liquid. They are no safe enough. Check the rakings on Global Finance Magazine. You will see that there are much safer banks outside the USA and the EU. Often, US banks are involved in the business with derivatives.

If I have to advise a client on a specific bank I always tell him to avoid banks who are substantially involved in derivatives and granting big credit facilities. That means risk. They should take risks alone and not with your hard earned money. According to Warren Buffet derivatives are weapons of mass destruction. Compared to Swiss banks US institutions are less familiar with global investment products.

The reality is people are traveling more than ever. You can run your business on a smartphone. The world is globalized and people have more options than ever. Putting money in a tax haven with an offshore bank account in your name does not give you any tax benefit. Due to FATCA and CRS, there is an automatic exchange on bank account information. Please check my videos on CRS and FATCA. Later in this video, I will explain how to pay less tax with your offshore company having multiple offshore bank accounts.

Most jurisdictions are imposing tax reporting obligations. To be on the safe side you have to report your offshore bank accounts to the tax agency in your country of residence. Offshore bank accounts offer more stability than in the USA and Europe. They offer more attractive interest rates with multi-currency accounts. They offer more flexibility with international payments and cryptocurrency. They allow better investments in certain countries.

The choice of the best jurisdiction for your offshore bank accounts has to be done very carefully. Before you invest substantial amounts in Georgia, Armenia or Cambodia you should also consider the political stability and other factors. It will be very easy to send money to Georgia or Dubai from Europe or from the USA but it will be very complicated to send money back from such exotic jurisdictions. The USA and Europe are very reluctant to receive substantial amounts form such countries. Watch out to not remain stocked with your money in such countries. It can be a one way ticket for your money.

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If you are living in the European Union or the USA you have to be very careful with opening offshore bank accounts for offshore companies. If you don’t follow the rules this adventure can end in a criminal tax nightmare. You can save substantial amounts of tax with an offshore company in Malta, for example. For US internet business people the Malta company formation can be very attractive but the Maltese company needs to have substance. You can optimize taxation down to 5% only if it’s done right. You need a local director, own offices and employees. You have to carefully collect the evidence for enough substance inside the company. The calculations and invoices for the social security contributions are excellent documents to show to the tax agency at home.

My view on offshore bank accounts is very simple. If you go offshore to establish an operative business you can choose different tax efficient offshore jurisdictions, including Georgia and Armenia. If you are looking for political stability combined with the safest banks on earth for private wealth management, there is no credible alternative to Switzerland. I made a video analyzing the best places for private banking activities. The result of my analysis is crystal clear and everybody can understand why Switzerland offers the best offshore bank accounts. It is not a coincidence that more than 30% of the global private wealth is managed in Switzerland. All the owners of more than 30% of global private wealth cannot be wrong.

There is no doubt, since the Automatic Exchange of Information, the rules for offshore bank accounts have changed in Switzerland. What has been fully legal 5 years ago is completely illegal today. Tax evasion was never considered as a criminal offense in Switzerland. Due to the tremendous pressure of powerful countries such as the USA and Europe on the Swiss government, since 2016 the Swiss laws have changed. If the amount of unpaid taxes in the country of residence of the foreign client is exceeding the amount of 250’000 CHF per year this is criminal tax evasion according to Swiss law. The truth is offshore bank account openings for non-residents have become more sophisticated.

We are here to help you find the best and the safest bank. We will prepare the Swiss bank account opening for you, including the Know Your Customer interview. All you have to invest is a one-day physical presence in Switzerland only to accomplish the formal identification process. We will help you to negotiate a preferential treatment with the bank. Once your Swiss bank account is open, you have the entry ticket to the international business community. Every business partner knows that your background has been checked by a Swiss bank. This is a door opener to multiple opportunities. I am happy that you watched the video until this point. Now, you really know how offshore bank accounts work today.

Insider information just like this cannot be found in universities, in libraries and not on the internet. If you would like further information on offshore banking, international asset protection and tax optimization I only share with subscribers, sign our boutique law firm’s letter. Based on that information you will save more money and expand your business faster than your competitors. Check our educational Video-Blog on our website where you will find the links to more of our easy-to-read articles.

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