You need to understand the types of offshore accounts available. Let us start with understanding the difference between an offshore bank account and investment bank account. The two have different tax implications.
- Offshore banks generally provide the scheme of offshore bank account. In addition, they also provide other normal services regarding holding a bank account, such as accepting and transferring money, providing interest, etc.
- Investors administer an offshore investment account. In addition, they can hold money in several other currencies, stocks, bonds. And mutual funds. Most importantly, using this account is the best option for holding your cash and assets overseas. You can ﬁnd more ﬂexibility in this account rather than in the general account. However, it may require higher fees.
After identifying the appropriate account, you can consider whether you need to go to that bank to open an offshore account. In most of these cases, offshore banks allow its customers to open an account over the internet. In that case, you can provide them the necessary information sitting in your room. If it is required to visit the bank and you are ready to go, and then be sure to know the required documentation you’ll need to take with you. Make a list and gather everything appropriate before packing. It is best to err on the side of caution when it comes to documentation — especially if you have to travel. Ensuring you have proper documentation ensures you avoid various crimes including illegal activities of transferring money at international level, such as money laundering or fraud. The requirements can vary from bank to bank. Try to be cooperative; they will do their best to complete the procedure as soon as possible. They may ask you for the following:
- Statement from your latest bank (to show that you have a satisfactory relationship with it)
- Slip of remuneration (you have to collect it from your current job)
- Proof your identity
- Proof of residence
- Passport (they can ask you to provide it as other than proof of identity)
- An explanation of the expected usage of the money. There are distinctive requirements for particular types of accounts. Be prepared to provide them. It is necessary for your security and legality of the account. Depending on the scenario, an offshore bank may ask you to provide:
- A contract of sale, if your money is coming from any transaction of real estate or from a business venture of signiﬁcant nature
- A letter from insurance company, if your money is coming from insurance
- A letter from an executor of the estate, if you have inherited the money.