An offshore Euro Bank Account is simply an offshore account in Euro denominations rather than dollars. Essentially, the same rules and laws apply whether the account is Euros or Dollars and is subject to taxation in one’s country of residence regardless of the privacy protections, and banking regulations of the offshore locality or jurisdiction in which the account is held. The first step in opening an offshore Euro bank account is to determine if one’s home country considers offshore banking legal. Many countries allow offshore banking however some require taxes on income earned through offshore accounts.
OFFSHORE EURO BANK ACCOUNT REQUIREMENTS:
Offshore Euro bank accounts can be held in European, Caribbean, Central American or any banking service provider outside of one’s country of residence. The rules and regulations governing banking in each Jurisdiction vary widely and may include the following requirements for opening an Euro account.
*Proof of Residency
*Chamber of Commerce reference (for business accounts)
*Legal and/or Accounting referral
*Incorporation of a company within the Jurisdiction
OPENING NON-EURO ZONE OFFSHORE EURO BANK ACCOUNTS:
To open an offshore account, one may have to form a corporation depending on one’s nationality and the jurisdiction in which the account is to be opened. In the case of corporate formation, services of a corporate registry or law firm may be required. An example of a jurisdiction requiring corporate formation is Panama if one is a resident of either Canada or the United States.
If one is a European opening an offshore Euro account, corporate formation and corporate bank accounts may not be necessary in lieu of personal bank accounts. Additionally, in Caribbean jurisdiction, Euro bank account’s minimum deposits may range from 500-1250 Euros.
ADDITIONAL OFFSHORE JURISDICTIONS:
There are many offshore jurisdictions to choose from each with varying levels of privacy, local taxation, convenience and banking products and services. The rules for opening an account in each jurisdiction may vary and thus it is important to research and consider each one carefully before making a decision.
A few of the offshore jurisdictions offering offshore bank accounts include but are not limited to Panama, the Cayman Islands, Aruba, the Bahamas and Saint Kitts and Nevis. Local laws, banking procedures and international treaties may also be a factor in the opening and management of an offshore euro bank account. For example, in Panama a recommendation is required more often than not to qualify for an offshore account.
EUROPEAN AND EURO-ZONE OFFSHORE EURO BANK ACCOUNTS:
Euro-Zone offshore accounts are accounts in countries other than that of one’s residence that are also located in a European country participating in the European Union. Swiss banks accounts are European but not Euro-zone accounts due to Switzerland’s political neutrality. Swiss bank accounts however, are typically considered an offshore account of choice for individuals seeking high quality professional service, protection from dissemination of information to third parties and a more diversified range of banking services. Euro requirements for opening some Swiss bank accounts may be very high or relatively low depending on the bank and type of services. To open a Swiss bank account the following steps may be taken:
*Research the type of account and financial institution i.e. postal, standard, investment, or numbered account
*Contact an international branch of a Swiss bank or a Swiss consulate
*Determine what identification and paperwork requirements are needed
*Gather minimum deposit
*Notarize and/or verify documents and send
Additional countries within the Europe and/or the Euro zone also offer off shore accounts including Austria, Luxembourg, Gibraltar, Cyprus and the Isle of Man. Account requirements such as minimum deposits, points of contact, and paperwork vary from location to location but generally, the steps required for Swiss bank accounts can serve as a blueprint for opening offshore euro accounts in other jurisdictions with the Euro zone.
OPENING AN OFFSHORE EURO BANK ACCOUNT ON THE INTERNET:
Opening an offshore euro bank account over the internet ideally uses a little more due diligence as the internet is not as regulated as more in person, bureaucratic and brick and mortar banking services. For this reason it is appropriate to use precautionary steps before proceeding to open an offshore euro bank account over the internet. Some of those precautions are as follows:
*Verify the online banking services are connected to a physical financial institution
*Confirm legality, registration and reputation of the financial institution
*Choosing a jurisdiction with a sound reputation may be advisable
*When sending information over the internet encrypt it if possible and investigate the websites security features, and origins.
*Consult the references provided with this article
Offshore Euro bank accounts can be opened via the internet and also have certain requirements such as those listed for Caribbean and European offshore accounts. The added measure of security and extra research is prudent when utilizing this option. Depending on where one lives, possession of offshore or certain offshore accounts may not be legal and thus it is wise to verify this as well.
To recap the process, essentially opening an offshore accounts involves first an foremost verifying legality with local tax and banking regulatory bodies and then, if the account is allowable using the following steps 1) Identifying one’s banking needs 2) researching the benefits and disadvantages of each offshore jurisdiction 3) Identifying the various banks and their services 4) contacting the appropriate legal or banking entity to determine exact paperwork, deposit and any other requirements 5) submitting the appropriate information and funds for opening. Off shore banks exist all over the world and are used by a wide variety of individuals, and/or corporations for a number of reasons including diversity of banking services, privacy protection, and financial security in the case of residents who live in politically unstable countries.