When opening an offshore account, choosing the right country is of great importance. Low hurdles in opening, the highest possible security of your money, privacy protection and simple processes for multi-currency transactions are important key figures. Legal regulations, political stability and a good reputation of the country in the world also play into the decision to choose an offshore country. In the article we compare the best countries for an offshore account. You will find important key data about each country as well as helpful information to weigh your decision.
Criteria to determine the most suitable country for an offshore account.
To find out which country you want to open an offshore account in, you should take a closer look at each country in terms of the following points:
- Political and economic stability of the country
- Legal and regulatory framework
- Tax advantages
- Reputation of the bank
- Reputation of the country in the world
In the following, we go into more detail on individual points.
Tax advantages and regulatory framework
By opening an offshore account, most people hope to gain tax advantages and less government control over assets and money transfers. With an offshore account, this is possible. Many countries, such as Dubai, entice people with 0 percent taxes on income, profits and capital gains. Likewise, other taxes such as corporate income tax or sales/value added tax are either not payable or are significantly lower than in the home country. A comparison of the tax systems is therefore the basis for both private investors and founders of an offshore company to decide in favor of an offshore account.
In addition, there are regulatory framework conditions such as the control and reporting obligation of transfers, facilitations in accounting or the granting of a certain degree of anonymity.
Reputation of the bank and the country
Wichtig bei der Entscheidung für ein Offshore-Konto sind zudem die Reputation der gewählten Bank, aber auch des Landes an sich. Ist das Land auf der schwarzen Liste der EU oder der OECD? Ist das Land in der Welt anerkannt? Unterhält es viele Handelsbeziehungen? Gibt es Handelsabkommen und Freihandelszonen? Wie ist das Prozedere bei der Eröffnung des Bankkontos und dem anschließenden Zahlungsverkehr? Sind Mindestsummen zu hinterlegen? Kann das Offshore Konto aus der Ferne eröffnet und verwaltet werden?
Stabilität des Landes und des Finanzsystems
Schließlich ist auch die Stabilität des Landes und seines Finanz- und Wirtschaftssystems von entscheidender Bedeutung. Politische Instabilität stellt ein Risiko dar. Drohende Aufstände, Revolten oder gar Kriege bringen auch Ihr Geld in Gefahr. Zudem ist es wichtig, dass das Land ein sicherer Hafen für Ihre Geld- und Firmengeschäfte ist. Eine stabile Währung, gute Infrastrukturen für die Geschäftstätigkeit und ein positives Wirtschaftswachstum sind Kennzeichen für ein gutes Offshore-Land.
The best countries for an offshore account in comparison:
Based on the above points, the following list of the best countries for an offshore account was created. With all these offshore accounts, you get all the services that are part of a modern bank today. These include debit and credit cards, multi-currency transfers, online banking, as well as investment banking, advisory services and wealth management.
Switzerland
Switzerland has always been considered one of the best countries for a foreign account. True, even here there is no longer a completely anonymous bank account. But the stable political and economic situation, the meticulous protection of data privacy and the highly developed banking system almost predestine Switzerland as an offshore country.
| Thema | Details |
|---|---|
| Residents | 8.738.791 |
| Area | 41.285 Square kilometer |
| Capital | Bern |
| Form of government | Federal republic with direct democracy |
| Official language | German, French, Italian |
| Currency | Swiss franc (CHF) |
| Gross Domestic Product | 752 billion USD |
| Income tax | 17-45 % (canton dependent) |
| Capital gains tax | O % |
| Sales tax /Value added tax | 7.7 % (reduced tax rate 2.5 %) |
| Corporate income tax/profit tax | 8.5 % (associations and foundations 4.25 %) |
| Property tax | 0.2 to 1.35 % (canton dependent) |
| Header tax | 50 CHF for natural persons |
| Real estate gains tax | Canton dependent |
| Hurdles in opening the offshore account | Minimum deposit of CHF 500,000, comprehensive information |
| Number of banks | >260 |
Liechtenstein
Liechtenstein has one of the strongest banking secrecy laws you can find in Europe. Like Switzerland, this small country is not part of the EU, but it is part of the European Economic Area. Politically stable and economically extremely powerful, Liechtenstein is ideal for an offshore account within Europe. There are no special hurdles for foreigners when opening an account apart from the minimum deposit.
| Thema | Details |
|---|---|
| Residents | 39.688 |
| Area | 160,5 Square kilometer |
| Capital | Vaduz |
| Form of government | Constitutional Monarchy |
| Official language | German |
| Currency | Swiss franc (CHF) |
| Gross Domestic Product | CHF 6.688 billion |
| Income tax | Maximum 8% state tax plus one municipal tax, total maximum 22.4%. |
| Capital gains tax | O % |
| Sales tax /Value added tax | 7.7 % (reduced tax rate 3.7 %) |
| Corporate income tax/profit tax | 12,5 % |
| Property tax | 4 % as part of the acquisition tax |
| Hurdles in opening the offshore account | Minimum deposit of CHF 50,000, extensive information, on-site visit |
| Number of banks | 12 |
Hong Kong
Since 1997, the former British colony has been a special administrative region of China. Despite increasing restrictions on civil liberties, however, Hong Kong is still considered an attractive financial center. Banks, including many international institutions, are highly liquid and Hong Kong is a major trading hub between Asia, Europe and North America. There is strict banking secrecy and there are no restrictions on the capital market.
| Thema | Details |
|---|---|
| Residents | 7,34 Millionen |
| Area | 1113.8 square kilometer |
| Capital | Hongkong |
| Form of government | Special Administrative Region of the People's Republic of China |
| Official language | Chinese, English |
| Currency | Hong Kong Dollar (HKD) |
| Gross Domestic Product | HKD 362.8 billion |
| Personal income tax | 15 % |
| Capital gains tax | O % |
| Sales tax /Value added tax | 0 % |
| Corporate income tax/profit tax | 3,95 % |
| Property tax | 0 % |
| Hurdles in opening the offshore account | Minimum deposit of 1,000 HKD, extensive information, on-site visit, local banks hardly ever sign contracts with non-residents anymore |
| Number of banks | ca 180 |
Dubai and United Arab Emirates
Dubai as well as the entire United Arab Emirates are the most important financial centers in the Middle East. Banking secrecy is relatively extensive, even though the country is part of the Automatic Information Adjustment (AIA). Economically and politically, the UAE is one of the most stable in the world. The banks are secure and highly modern. The country is very open to many innovative industries and investment opportunities. However, large capital deposits and a local visit is required for an offshore account in most cases.
| Thema | Details |
|---|---|
| Residents | 9.558.000 |
| Area | 83.600 Square kilometer |
| Capital | Abu Dhabi |
| Form of government | Federal constitutional monarchy (de jure) |
| Official language | Arabic |
| Currency | UAE-Dirham |
| Gross Domestic Product | 359 billion USD |
| Income tax | 0 % |
| Capital gains tax | O % |
| Sales tax /Value added tax | 5 % |
| Corporate income tax/profit tax | 9 % |
| Property tax | 0 % |
| Hurdles in opening the offshore account | High equity contributions, extensive information, on-site visit. |
| Number of banks | 52 |
Singapore
Singapore in Southeast Asia is becoming increasingly important as a financial center. Political stability, good economic growth and low taxes make the country attractive. Assets remain untouched, are safe and the legal system is very investor friendly. Singapore’s banks are highly liquid, safe and have high capital ratios.
| Thema | Details |
|---|---|
| Residents | 5.685.600 |
| Area | 720.6 Square kilometer |
| Capital | Singapore |
| Form of government | Parliamentary republic |
| Official Language | Malay, English, Chinese, Tamil |
| Currency | Singapore Dollar (SGD) |
| Gross Domestic Product | 397 billion USD |
| Income tax | Maximum 22 % |
| Capital gains tax | O % |
| Sales tax /Value added tax | 7 % |
| Corporate income tax/profit tax | Staggered, maximum 17 |
| Withholding tax | Certain tax rates for non-resident entities for miscellaneous income |
| Hurdles in opening the offshore account | High minimum deposits, careful verification, lots of information |
| Number of banks | 123 |
Isle of Man
The British colony of Isle of Man is a popular offshore financial center in the Irish Sea. With no foreign exchange restrictions or capital gains tax, the safe island is a white tax haven. The offshore sector has also made the Isle of Man considerably wealthy.
| Thema | Details |
|---|---|
| Residents | 84.640 |
| Area | 572 Square kilometer |
| Capital | Douglas |
| Form of government | British Crown Estate |
| Official language | Manx, English |
| Currency | Isle-of-Man Pound (IMP) and Pound Sterling (GBP) |
| Gross Domestic Product | Around USD 7 billion |
| Income tax | 10 – 18 % |
| Capital gains tax | O % |
| Sales tax /Value added tax | 20 % |
| Corporate income tax/profit tax | Between 0 and 10 % (depending on industry) |
| Property tax | - |
| Hurdles to opening the offshore account | High initial deposits, extensive information, on-site visit desired |
| Number of banks | 11 |
Bahamas
The Bahamas is not only a great place to vacation. The country is also an excellent offshore financial center. To open an offshore account, which can also be done online, you have to dig quite deep into your pocket. The account maintenance fees are also very high. However, it is worth it, because the Bahamas convince with economic and political stability. One third of the gross domestic product is generated by the financial sector. The banks are highly liquid and banking secrecy is a top priority under the CRS. If you want to combine the opening of an account with the establishment of a company, the Bahamas guarantee you absolute tax exemption for 20 years.
| Thema | Details |
|---|---|
| Residents | 393.000 |
| Area | 13.939 Square kilometer |
| Capital | Nassau |
| Form of government | Parliamentary monarchy |
| Official language | English |
| Currency | Bahama Dollar (BSD) |
| Gross domestic product | Around USD 10 billion |
| Income tax | 0 % |
| Capital gains tax | O % |
| Sales tax /Value added tax | 7,5 % |
| Corporate income tax/profit tax | 0 % |
| Property tax | 0 % |
| Hurdles in opening the offshore account | Minimum deposit of up to 50,000 USD extensive information, on-site visit not necessary |
| Number of banks | Unknown, many local, international and small private banks |
Panama
Panama is located in Central America and has long been considered one of the best countries to open an offshore account. However, the hurdles for opening have become somewhat higher for individuals without residency. Many documents and information are required. There are no direct taxes. Foreign exchange restrictions or capital movement restrictions are also unknown. Since Panama is linked to the economy of the USA, the country is very stable in economy and politics.
| Thema | Details |
|---|---|
| Resident | 4,4 Millionen |
| Area | 75.517 Square kilometer |
| Capital | Panama City |
| Form of government | Presidential Republic |
| Official language | Spanish |
| Currency | Balboa (PAB) and US dollar (USD) |
| Gross Domestic Product | 64 billion USD |
| Income tax | 15 % and 25 % (two income levels) |
| Capital gains tax | 10 % |
| Sales tax /Value added tax | 7%, 10% on alcohol |
| Corporate income tax/profit tax | 25% (if domicile is in Panama), otherwise 0%. |
| Property tax | 0 % |
| Hurdles in opening the offshore account | No minimum deposits extensive information and disclosures for private individuals |
| Number of banks | 85 |
Belize
High discretion and no taxes on foreign business for offshore companies – this is Belize. The country is located on the border with Mexico and Guatemala. As far as it is possible under the exchange of information CRS, banking secrecy is strictly maintained. Banks must keep 24 percent of deposits on hand at all times. Assets are protected under the rule of law.
| Thema | Details |
|---|---|
| Residents | 440.000 |
| Area | 22.966 Square kilometer |
| Capital | Belmopan |
| Form of government | Parliamentary monarchy |
| Official language | English |
| Currency | Belize Dollar (BZD) |
| Gross Domestic Product | 2 billion USD |
| Personal income tax | 25 % (there are high basic tax allowances), different tax rates for companies according to sector |
| Capital gains tax | O % |
| Sales tax /Value added tax | 12.5%, but many goods and services are tax-exempt |
| Corporate income tax/profit tax | 25% (if domicile is in Panama), otherwise 0%. |
| Property tax | 0 % |
| Hurdles in opening the offshore account | Moderate minimum deposits, on-site visit encouraged, some banks offer remote service |
| Number of Banks | 5 Commercial banks |
Seychelles
Seychelles is also one of the best countries for an offshore account. Basically, taxes are low in this politically stable country. No taxes are due on capital gains. Therefore, the country is attractive for investors and company founders. There is little regulation of banks and finance in Seychelles. Opening an offshore account is therefore very easy. However, information on the origin of the money must be provided.
| Thema | Details |
|---|---|
| Residents | Nearby 100.000 |
| Area | 455 square kilometer |
| Capital | Victoria |
| Form of government | Presidential Republic |
| Official language | Seychelles Creole, English and French |
| Currency | Seychelles Rupee |
| Gross Domestic Product | USD 1.5 billion |
| Income tax | 0% for offshore companies and freelancers |
| Capital gains tax | O % |
| Sales tax /Value added tax | 0 % on foreign business |
| Corporation tax/profit tax | 0 % on foreign transactions, flat tax of 100 USD/year |
| Property tax | 0 % |
| Hurdles in opening the offshore account | No minimum deposits, remote possible |
| Number of banks | At least 13 international banks for offshore accounts |
Conclusion
When choosing an offshore account, various factors must be taken into account, such as political stability, tax advantages, legal framework, reputation of the bank and the country, and the stability of the financial system. Countries like the United Arab Emirates attract with attractive tax advantages, while regulatory framework and anonymity also play a role. The reputation of the bank and the country as well as their trade relations are also important. A thorough comparison enables the selection of the most suitable country for an offshore account.
