A properly set up asset protection plan incorporating an offshore bank account can provide privacy and confidentiality while protecting liquid assets and real estate through banking secrecy laws in the country housing the bank account.

Setting up an offshore bank account can cost anywhere between $0 and $1,400 USD depending on the vendor which an astute investor will recoup quickly through the savings accrued while holding the account.

However, it is recommended that you consult an offshore banking expert as well as an asset lawyer prior to making any commitments to ensure your best interests are protected and that you are getting factual information.

What Types of Offshore Bank Accounts are out there?

In general, there are three main types of offshore bank account available depending on the jurisdiction being considered; personal bank accounts, corporate bank accounts and merchant accounts.

Personal Offshore Bank Accounts

A personal bank account is available to an individual person only. A personal bank account offers the least asset protection but in general are governed by the same banking secrecy laws as other types of offshore bank accounts. A personal bank account has the caveat that your own name is attached to the account. There is no layered protection with a personal account.

Also in general the costs associated with setting up and maintaining a personal bank account are much less than for a corporate or merchant account. Acquiring a personal bank account is also the easiest since it requires that you provide a lot of personal information to be set up such as proof of identity, notarized photocopies of your passport and full address information.

Corporate Bank Accounts

In order to secure a corporate bank account offshore an applicant must first register a corporation in the country where the bank account is being sought. Once the corporation is set up an applicant can then apply to a local bank to get an account in the name of the corporation. Depending on the offshore destination utilized and the asset protection vehicle chosen, it may be possible to set up a corporate account without your name actually appearing on the account. This extra privacy comes at a cost of course as the applicant will need to pay to set up the corporation in addition to the banking services.

If a layered asset protection structure, such as a non profit foundation owning the corporation which owns the corporate bank account is used which is available in Panama greater secrecy and privacy can be achieved.

Merchant Accounts

Merchant accounts are used by businesses or websites that require the ability to process credit card transactions. Getting a merchant account offshore has the main advantage of providing less expensive processing fees over what a local bank in your country may provide. The savings in processing fees can be passed on to your customer or kept as increased profit.