It is not uncommon to hear about an offshore current account, opened at banks with offices abroad and with particularly advantageous conditions.
But how do they work and how to open an offshore bank account?
What are offshore bank accounts
First of all, it is necessary to understand that offshore accounts are banking relationships with which one can operate without undergoing too much control. This happens precisely thanks to the lack of regulation, typical of countries like Panama, the Cayman Islands and others, in which the banks in which it is possible to open an offshore bank account are based.
Offshore account contracts can be concluded either by private individuals or by companies, and transfers made to such relationships are not subject to particularly stringent controls, on the contrary, sometimes they are even null.
The opening of an offshore account is, therefore, possible for anyone, although the legal provisions regarding this dictate clear rules.
Open an offshore bank account
The opening of offshore current accounts is a relatively simple operation, which can be carried out without necessarily going to the place where the bank is located. In fact, to open an offshore bank account it is necessary to have valid identity documents or passports and the exchange of documentation can also take place by e-mail. Without entering into the merits of the legitimacy of intentions, in some cases, the offshore bank requires a certification that proves the authenticity of the documents, a notary stamp or a similar act. Some banks may, in some cases, request documentation regarding the origin of the money transferred to the account, but this does not always happen and is not the practice.
The opening and management of the account can, therefore, take place entirely and digitally.
Both private individuals and companies can provide their data and, subject to approval by the bank, operate on the foreign account at advantageous conditions and without too many restrictions.
Facilitated tax legislation and current account
The countries in which offshore accounts can be opened are tax havens. In fact, in these states the tax legislation is elastic and the rules are particularly flexible. Taxation and low rates, high-interest rates, bank secrecy and the possibility of transferring large sums in the absence of controls are some of the typical features of tax havens.
Opening an offshore bank account is, therefore, possible for anyone; however, this is a practice that is often not legal, a choice to be evaluated with great care and awareness, to avoid incurring situations that are not transparent and difficult to manage.