Cayman Islands banks offer a wide range of accounts to suit different needs. You can get in touch with an institution on the internet and discuss the possibilities regarding offshore accounts, investment fund accounts or the most prestigious private accounts.
Steps
Part 1 of 2: First Part: General Information and Requirements
Step 1. Be aware of your country's tax laws
You will need to be aware of the penalties for failing to comply with local tax obligations by using an offshore bank account. If your income is taxed for your worldwide activities, it is illegal not to carry your profits back to an offshore account, even if there is no additional tax in the country where you opened it.
If your intention is to open an offshore account in the Caymans to avoid tax laws, you cannot do so legally. If caught red-handed, you may find yourself facing numerous civil and criminal penalties, including incarceration and confiscation of assets
Step 2. Understand the differences between an offshore account and an investment account
Having a bank account and an investment account are two different things, each of which has distinct tax implications.
- Offshore bank accounts are administered by banks and offer traditional services associated with a classic bank account: spending, receiving and transferring funds, earning interest. If you want to deposit your money in an offshore account, opt for a bank account.
- Offshore investment accounts are managed by investors and can hold money in various currencies, stocks, bonds and mutual funds. They provide more flexibility than bank accounts, but their rates can be higher. If you want to hold both assets and cash overseas, an investment account is for you.
Step 3. You don't have to go to the Cayman Islands to open an account
You can do it by email and manage it online.
Step 4. Find a bank with competitive interest rates
You can search the internet, using terms like "Cayman private bank account" (if you want to deposit more than $ 300,000), "Cayman bank account", "Cayman banking", "Cayman banks" for a simple account, or write to your country's embassy in the Cayman Islands. Private banks, on the other hand, are more concerned with investment and portfolio management than with typical banking operations.
Ask each bank you contact about the fees associated with opening an account. Use them to evaluate competitor prices. These sums may not be insignificant - opening an offshore account could cost anywhere from $ 500 to $ 1,000
Step 5. Ask the banks if they require an apostille, which is a special type of certification that you should provide as part of an international agreement
If you are asked for it, you will need to contact the relevant authorities to obtain a state or national version before continuing with the application process.
Step 6. Find out about the requirements for opening an account
They are established to avoid money laundering, fraud and other legal or illegal activities associated with international money transfer:
- Financial statements from your current bank to prove a satisfactory relationship.
- Your current job paycheck.
- Proof of your identity.
- A copy of your passport (may be different from proof of identity).
- Proof of residence.
- A description of the use you intend to make of the money.
Step 7. Remember that some offshore bank accounts may require less proof and less information
Banks that don't ask for much exist for a reason: many people choose them to use them in an opaque way. If you intend to open a bank account in the Caymans and keep it clean and legal, you should stay away from these institutions.
Step 8. Be prepared for the other requirements set by banking institutions as security measures
Due to increased publicity and scrutiny over the years, offshore banks have begun to ask more questions and require more evidence. Be prepared to provide additional information in the following cases:
- They may require you to provide sales contracts if the money you are depositing comes from a real estate transaction or significant business venture.
- They may ask you to provide a letter from your insurance company if the money you are depositing comes from an insurance contract.
- They may ask you to provide an executor's letter if the money you are depositing comes from an inheritance.
Part 2 of 2: Part Two: Using the Offshore Bank Account
Step 1. If possible, decide in which currency to deposit the money
An advantage of having an offshore bank account is being able to choose the currency. However, in addition to the pros, there are the cons:
- The advantage of depositing money in a foreign currency is a useful measure against the depreciation of an unstable currency. If your coin is unstable and / or steadily loses its value, this feature can turn into an advantage.
- The disadvantage of depositing money in a foreign currency is that you can be subject to foreign tax laws and will have to pay tax for exchanging coins.
Step 2. Find out how to deposit funds into your account
Most modern offshore bank accounts are managed electronically. Many offshore banks do not accept foreign checks, and carrying money can be impractical and / or dangerous.
Take a look at the fees, as banks usually charge a wire transfer fee when you deposit money. If you find one that doesn't, you can consider it for your banking
Step 3. Find out how to withdraw funds from your account
Although most banks issue a debit card associated with your account, you may have to pay fees to withdraw funds from your bank account.
- Offshore banks generally don't issue checks to withdraw money for privacy reasons. As if this weren't enough, checks drawn from foreign accounts are often not accepted by other banking institutions.
- For this reason, consider depositing your money into two accounts: one offshore and one domestic. You will be able to transfer funds from an offshore account to a national account to avoid having to deal with unexpected headaches.
Advice
- Make sure you choose a bank that offers a variety of web services.
- To find a bank, search the internet or ask for a list at your country's embassy in the Caymans.
- You can choose the language in which you will communicate with account officials. You can choose between English, French, Spanish, German, Italian, Russian and Arabic; the service will be customized according to your needs.
