Tax Efficient, Private, Flexible Offshore Banking Solutions

Summary: How one can establish a tax efficient, private and secure offshore solution for banking and business purposes

The vast majority of people who are researching their offshore options want some form of income solution that shelters their earnings and gains from excessive taxation whilst still ensuring that they have flexible access to income earned and that all their personal, business and financial transaction details are protected.

So is such a solution available?  For many people yes it is…If this basically sounds like the type of solution you’re looking for - either for your personal income or the profits you derive from your own company - the following typical example of a reader’s requirements relating to the above scenario followed by a typical solution from our strategic business partners will be of direct interest to you and may help you find your own way to creating a tax efficient, private, flexible offshore banking solution that is appropriate for your personal situation.

Example Scenario

Reader Enquiry – I wish to receive my earnings/income/profit into an offshore bank account to minimize my tax burden and escape the reporting requirements and the remit of the European Union’s Savings Tax Directive. 

I need debit and credit card access to my funds.  I want internet access to my bank account.  I want all my personal and financial transactional data kept private and I want an easy solution to manage. 

Please can you help?

Our Strategic Business Partner’s Likely Proposed Solution – having determined that what our reader requires is within the law depending on their personal circumstances, our strategic business partner may suggest something along the following lines: -

1) Open a bearer share IBC in the Seychelles with nominee directors – WHY? – because the Seychelles are a qualifying tax free nation for such entities and what’s more, such entities need not file accounts. 

Such a company is perfect for trading purposes, asset protection purposes and for legitimately minimizing personal or business tax.

2) In the name of that company open an offshore business bank account - ideally this account will be opened with a leading and reputable international bank with which the strategic business partner has good terms so that the client need not undergo a credit score based application process nor even submit bank references.

Why does this tax efficient, private and secure offshore banking and company solution work in this scenario?

The reader in question is resident in a nation affected by the EU savings tax directive or in a nation where there are other reporting requirements in place against banking institutions where clients hold personal bank accounts.  Therefore it is essential that they have an offshore business bank account to shelter themselves from taxation and the loss of privacy that such directives impose because business bank accounts do not come within the remit of many such directives.

To open a business bank account it is naturally necessary to open an offshore company in whose name the bank account can be opened.  Great care has to be taken relating to the jurisdiction chosen for the offshore company (or IBC) – such a jurisdiction should be safe, secure, well regulated, well respected, allow for bearer share companies, have no taxation on income earned by the company externally to the jurisdiction, allow for nominee directors and for no accounts having to be filed (hence the choice of the Seychelles in the above example).

We only work with the most reputable companies in the business of providing financial, taxation and offshore services – such companies often have very well established track records with leading international banks.  Once they have done their due diligence on the client in question it is sometimes not then a requirement that the client submits bank references to open their offshore business bank account.

Such a solution will cost the client in the region of GBP 2,288 and the vast majority of clients who use such a structure save the set up costs in the form of taxation saved within the first three months of having the solution and account in place.

Remember that we are not qualified tax advisers - any information we give does not constitute advice.  We always recommend you seek qualified taxation and financial advice and what’s more, when it comes to ‘going offshore’ if there is a reporting requirement upon you, to ignore that requirement is against the law.

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