Offshore bank accounts are accounts which can are opened in banks outside of ones country. In the past, these types of accounts were used as a means of hiding business earnings and profits. This was due to the fact that offshore banks were not obliged to inform international authorities about existing accounts; therefore the Internal Revenue Services (IRS) of the United States would not be able to detect theses accounts. Recently, the rules pertaining to offshore banking has changed. It is now a requirement for accounts holding $1000 USD or more to be reported to IRS as income regardless of where the account is held.
How to open an offshore bank account in Panama
Opening an offshore bank account can be cumbersome compared to opening bank accounts within your own country. It is important to conduct a research on several offshore banks in Panama before deciding which one to choose. A few recommended banks are HSBC, Credicorp Bank, Stanford Bank, Banvivienda Bank and Multibank.
HSBC is considered the best offshore bank option in Panama. They offer online banking services in both English and Spanish and no direct contact (personal visits) is required. The minimum deposit requirement is $1000 USD.
Creditcorp Bank currently offers online banking services in both English and Spanish and no direct contact (personal visits) is required. An initial $1000.00 USD is required to activate the account.
Standford Bank offers online banking services in both English and Spanish as well as credit and debit cards. The bank requires a personal visit to activate the account in addition to a deposit of $3000.00 USD.
Currently, Banvivienda Bank only offers online banking services in Spanish. No personal visit is required to activate an offshore account but an initial deposit of $3000.00 USD is required.
Multibank offers online banking services in English and Spanish as well as Master Card and Visa credit and debit cards. A personal visit is a requirement but persons who are unable to do so can activate their accounts by other means. Generally, persons are required to deposit a minimum of $35000.00 USD in addition to making a personal visit. Another way to activate an offshore account at Multibank is to open a time deposit account with a minimum of $25000.00 USD in addition to opening a savings or checking account with a minimum of $1000.00 USD.
All of these banks will require prospective account holders to present the following:
- A copy of your entire passport and a second ID.
- A reference letter drawn from one bank addressed to the bank you seek to do business with. This letter must be written in both Spanish and English, should contain detailed information about the bank and notarized by the Consulate of Panama.
- A business letter of reference addressed to bank you seek to do business with. This letter must be written in both Spanish and English, should contain detailed information about the bank and notarized by the Consulate of Panama.
- A copy of your last bank statements, preferably the last three (3)
- A copy of your tax returns, preferably the last two (2).
- A filled out bank form with the necessary signatures affixed.
Offshore Banking in Belize
Belize is one of the top destinations for offshore banking. This can be linked to the non-requirement of personal visits in addition to increased international travel to the country and the ability the internet gives bank account holders to manage their accounts from different countries. Offshore bank accounts usually offers tax benefits, whether from interest earned (which is not taxed) or from a reduction in tax liability due to savings transferred to offshore bank accounts. Additionally, offshore banking offers confidentiality, convenience and global accessibility.
How to open an offshore bank account in Belize
Individuals wanting to open an offshore bank account in Belize can do so via the internet and/or telephone. There are banks in Belize which offers offshore banking services. Popular options are Atlantic International Bank Limited, Belize Bank International Limited (currently British Caribbean Bank International Limited), Caye International Bank Limited, Choice Bank Limited, Handels Bank and Trust Limited , Market Street Bank Limited and Provident Bank & Trust of Belize Limited (currently Heritage International Bank & Trust Limited) .
Atlantic International Bank Limited offers various offshore banking services and products such as online banking and debit and credit cards. All of which allows each customer to do their banking in a convenient and secure manner.
British Caribbean Bank International offers international and offshore banking services to their clients.
Caye International Bank Limited provides their customers with various types of banking services including offshore banking and foreign currency accounts amongst others.
Choice Bank Limited provides their customers with international banking services as well as others. These include financial solutions for companies and associations experiencing financial problems.
Handels Bank and Trust Limited offers international and offshore banking services to their clients inclusive of fixed deposits.
Market Street Bank Limited offers international and offshore banking services to their clients.
Heritage International Bank & Trust Limited offers various banking services. These include foreign currency accounts international letters of credit, back-to-back loans, international credit cards, wire transfers, traveller’s cheques, broker purchases as well as demand and fixed deposit accounts.
The general requirement to open an offshore bank account in any one of these banks is a minimum deposit of $1000.00 USD. Other requirements include:
- A scanned colored copy of an individual’s passport.
- A scanned colored of page from an individual’s passport showing only his or her signature and photograph. If this copy was not made by the bank then it must be notarized.
- A Utility bill showing proof of address.
- A reference letter drawn from one bank addressed to the bank you seek to do business with.
- A copy of your last bank statements, preferably the last three (3).
- A copy of your tax returns, preferably the last two (2).
- A filled out bank form, with the necessary signatures affixed.
Since personal visits are not a requirement in Belize, individuals are usually recommended to hire consultant. A consultant is someone whom you would talk with about the type of services required. Additionally, a consultant will be able to further advise on any financial decisions a person wishes to make. A reputable consultancy organization is Alpha Services Limited located at 99 Albert Street P.O. Box 831 Belize City, Belize. The telephone and facsimile numbers are (501) 227-1847/5280 and (501) 227-5278 respectively. For further details, you may contact Amanda Young at telephone number 011(501) 227-5280 or send an e-mail to the company’s E-mail address which is info@alphaservicesltd.com.