Are Personal Accounts a good choice?
4 IMPORTANT POINTS EVERYONE MUST KNOW ABOUT OFFSHORE PERSONAL ACCOUNTS
any client do not consider this important points and ask for a personal account while nowadays personal account ARE NOT RECOMMENDED
“I don’t have any business and look for an offshore bank account for saving and investment purposes, why might I prefer a corporate account instead of a personal one?”
1) Personal accounts are in YOUR OWN NAME
This means that can not be anonymous. Long gone are days when you could
open an account with a fake driver license. Now you must provide certified passport and utility bills.
2) PERSONAL ACCOUNT MUST BE DECLARED IN YOUR TAX RETURN
As example US (with FBAR) UK and EU requires that all personal assets must be declared in your tax return. New EU directive impose to declare every assets owned abroad.
You may decide to undeclared this accounts but failing to compliance the sanctions you may incur it’s a very unwise choice.
3) EXCHANGE OF TAX INFORMATION (FACTA, Standard for Automatic Exchange of Financial Account Information in Tax Matters, etc
If you live in a developed country all your personal financial information will be collected and automatically exchanged with your home country tax authority.
There are many laws and treaty that aims to fully exchhange the info, however some countries don’t partecipate in the automatic exchange of information, some operate a withholding.
If you establish an offshore company, and open a bank account for this company, the account will be a CORPORATE account, not a personal account, even if only will have access to the funds in that account.
4) ALL YOUR EXPENSES ARE IN YOUR NAME
When you use your atm card or credit card you’re doing it in YOUR OWN NAME
There are a number of benefits available to you through a corporate offshore bank account even if you do not conduct any business activities.
1) BANK ACCOUNT IS NOT IN YOUR NAME
Having an account in the name of a company rather than in your own name lets you keep your offshore banking even more anonymous and confidential. It’s not that transparent how and where you spend your money and does not attract unwanted attention.
2) SEPARATE LEGAL ENTITY FROM YOURSELF
Your funds on the company’s bank account are legally separate from you. It’s not that easy to encumber assets of a company with your personal liabilities. Thus you build another layer of asset protection. You have to have an offshore company to have an offshore business bank account and one of the most efficient, cost effective, simple, secure and tax efficient way. This approach is legal, simple, totally safe and confidential – and it is just one way that someone seeking an offshore bank account can ensure they get the most flexible and efficient solution for them.
If you use a business accounts these regulations do not touch you. Offshore company is supposed to pay income taxes in the country of incorporation, but the beauty is that offshore companies do NOT pay any income tax at all, nor have to prepare or ever submit accounting records, so there in NO tax on your funds you keep in the offshore corporate bank account.
3) BUSINESS DEBIT AND CREDIT CARDS
Most of the clients prefer to use a debit card linked to that account to anonymously withdraw funds from an ATM, or pay in shops.
But is this safe to use an debit or credit card you wonder now?
What trail is left behind?
You should know that even if on the ATM card will be imprinted the company name and your name, using a card is safe, because in the ATMs only the card numbers are stored. The names are NOT! When you withdraw cash from ATM or use the card in shops to pay for goods, the ATM sends to card issuer (VISA or MasterCard) only the card numbers, the issuer will send the numbers to the issuing bank, the bank check to see if there are funds in the card account, deduct the amount you withdraw, and reply with OK or NOT OK, than VISA or MC forwards the reply to the ATM, and you can withdraw the money if the bank answered OK, or you will get “insufficient funds” error if you don’t have enough funds in the card account. Only the bank knows the details behind that card number, and these details are protected by bank secrecy laws and can not be disclosed to any third party without a court order. We would say that the ATM cards are very safe to use.
ALWAYS SEEK THE ADVISE AND HELP OF A CERTIFIED PROFESSIONAL