“It is not in the stars to hold our destiny but in ourselves.”
William Shakespeare, The Tragedy of Julius Caesar.
The world has always been wicked for those who want tranquillity and peace of mind. Our kind passed through bloody wars, revolts, crusades, pandemics, earthquakes, and a plethora of cataclysms for thousands of years and still does. Just a couple of years ago, generations from X to Z witnessed one of the most significant pandemics in documented human history. All of a sudden, billions of people were under quarantine, and we had no idea when it would finish. Nothing is more chaotic than not seeing the hereafter, feeling lost and forfeiting hope. But, lucky us, somehow, we made it through with a golden fulcrum and a life lesson in our pocket: Be ready for what tomorrow brings!
Our faith in governments and other superpowers was entirely shaken by the latest global recession in 2009 and Covid-19 in 2020, but the nightmare is still on. In the early days of 2022, we saw the invasion of Ukraine in a week by Russian forces. In the middle of Europe, a small country was drawn to defeat itself against one of the world’s most powerful troops. Unfortunately, at the time of writing these sentences, this dreadful warfare goes on with all its severity, and we keep on pretending everything is ok. Do we all live in surreal Guernica by Pablo Ruiz Picasso?
What about the subprime American mortgage crisis in 2008? It was just a blink of an eye to discern the devastating impacts in Europe. The same European Union that we are taught to be the insignia of unity, harmony and modernism. The most affected nations were anointed PIIGS (Portugal, Italy, Ireland, Greece and Spain), and their residents experienced grave capital controls and a severe markdown of salaries. Pensioners-to-be struggled with the prospect of renouncing all their savings. There were kilometres-long queues in front of ATMs while, just like all financial crises, investment in gold to diversify peril rose drastically. Those were the times of circus and panic.
The world has never been a safe zone for anyone and will never be. Yes! There will be periods resembling Pax Romana in many aspects, yet we must always be watchful for any approaching meteor. Do not believe your long-lasting, wealthy, and developed country will always remain as it is. I am sure Ukrainians also used to think this was a safe world once, but it took just a couple of days for their mirage to fall to pieces.
These slippery and untrustable balances do not leave us any option other than locating safe ports to uphold our assets securely. This is why offshore banking is one of the most popular paths many investors follow to put some of their eggs in another basket.
What is an Offshore Account?
In a nutshell, I can define an offshore bank account as a bank account formed out of a residential country. Coming with a myriad of benefits like safety, tax exemption or being tax-free, volatility of the fiat currency, and many others, an offshore account features an iron shield in unpredictable economic or political cases. This world is a stage where a crisis on the other edge of the globe may demolish your life with a domino effect. A trattoria owner in Cefalu takes down the shutters of her heirloom business because of Covid-19 from Wuhan, China. Although not being affected by the aftershocks is inevitable, lessening the damage through offshore accounts is optional.
This high demand for safe and convenient alternative countries leads to serious competition worldwide to bring the most considerable money in. But which country is the best choice for offshore accounts? Let’s look closer at the most popular offshore destinations whilst I will also emphasise their swings and roundabouts; thus, you can shape your opinion readily if you desire to open an offshore account.
Probably, Switzerland is the first country blinking into our minds when the subject is offshore accounts abroad. It is no secret that American tycoons have used Swiss bank accounts since the early 70s. The country is aware of its prestige and regulates the banking laws accordingly. Actually, the keyword of the Swiss Confederation’s success is the solemn laws regarding the complete privacy of the account holders. Sharing the accountant’s personal and financial data is completely prohibited when they do not consent. Hence, only you and your Swiss banker hold the information about the details of your Swiss account. This is an excellent way for those who want to maintain their anonymity.
The Cayman Islands
Located in British Overseas Territory and encompassing three isles in the western Caribbean Sea, The Cayman Islands is recognised for its squeaky-clean beaches. But, it is not its ravishing tropical aura compiling millions of USDs here. The country is mainly preferred for its minimal taxation regulation. As we all know, taxes can be tedious and solemn for investors; however, account holders will never undergo direct taxation here.
Indeed, Singapore is one of the game-makers in both telecommunications and financial infrastructure. The country suggests an all-in-one banking venture with full assistance to please high-net-worth investors seeking capital management benefits. These superb services contain smooth banking services, lawful counsellors, estate planning, tax assistance, and financial guidance. Sadly, there is a drawback in the Singapore banking system. The country mandates in-person visits when you want to open an offshore account in the foremost place.
Belize is found on the eastern coast of Central America and has Caribbean Sea shorelines. This stunning country is an attractive and safe zone for investors, entrepreneurs, expats, tourists, and digital nomads. The edge of the Belize offshore fund is its tempting Fixed interest rates of up to 20%. This Central American polity is deemed a politically steady country like Switzerland and Finland. Therefore, foreigners can take advantage of profitable rates along with the solace of stability.
When the subject is in equilibrium, Germany leads for sure. As a significant role model in the European Union and the Mecca of highly-developed industry, Deutschland manoeuvres through SEPA schemes in the Eurozone. Are you already a resident of the EU? Then it is effortless and speedy to make money transfers due to the accordance.
Don’t you live in a member country of the European Union? No grounds to fret. German Banks give access to outsiders when they want to open offshore accounts in Europe. Since Germany circulates Euro as the official fiat currency, the usability of Euros in European corporations can be highly worthwhile for small business owners. You can simply send and receive money transfers in Euro, which is in the top three of the most dominant fiat currencies worldwide.
It is impossible to overlook one of the most appreciated offshore spots, Hong Kong. First of all, you do not need to open your bank account in person here. The rich preference for financial services retains mobile banking, wealth management systems, letter of credit, and many more. Qualified with cutting-edge technology, offshore accounts in Hong Kong may initiate as low as 5000 HKD, equal to approximately 650 USD, with an administrative charge of 50 USD in advance.
Moreover, Hong Kong accounts have the fantastic option to do business within Asian markets, especially China, the goliath on the battlefield. Eventually, the Hong Kong banking system doesn’t impose any taxes on the account holders. Long story short, Hong Kong astounds many investors with its magnetic advantages and state-of-art financial services.
All in all, in this gigantic wilderness we call “Earth”, we must take sapient precautions against any potential metamorphoses from wars to political shocks. Many analysts envision a severe recession initiating in January 2023 in Europe, whereas the Ukraine-Russia clash looks like it will not end soon. I wish I could tell you everything will be alright, but I cannot lie. The good news is you can split the impending menace in diverse countries with an offshore account. Indeed, it is perfect timing to consider an account in one of the countries I remarked on above. Do not forget; those preparing while others are daydreaming will always be the prizewinners!