Off shore banking

just.the.truth

Off shore banking

Post by just.the.truth »

I am interested in opening a bank account overseas (not my home country), and I'm just curious in anyone has had success doing this, or know which countries provide viable banking options for expat teachers. I have seen this topic floating around the boards, but I can't find it.
sid
Posts: 1392
Joined: Sat Dec 02, 2006 11:44 am

Re: Off shore banking

Post by sid »

Do you mean an account in the country where you’re living? Most of us do that. HR should be able to help you.

Or an account elsewhere? If you explain the purpose/intent, perhaps we can provide better support.

If you’re a US citizen, be aware the landscape has changed considerably in the last decade or so. The US requires citizens to report any account anywhere that reaches a value of $10,000 or more, even if it’s only for a day. Reporting is free. The US has gotten really effective at requiring foreign banks and investment firms to provide information about accounts held by US citizens. It’s why some banks now won’t even offer accounts to US citizens, while the rest require onerous proofs of identity and citizenship. If you’re found by the US government to hold an account you didn’t report, penalties are steep. I might not remember correctly, but possibly they are around 50% of the value of the account? I watched a former colleague get caught, and it cost him tens of thousands of dollars to get right with the US government.
just.the.truth

Re: Off shore banking

Post by just.the.truth »

sid wrote:
> Do you mean an account in the country where you’re living? Most of us do
> that. HR should be able to help you.
>
> Or an account elsewhere? If you explain the purpose/intent, perhaps we can
> provide better support.
>
> If you’re a US citizen, be aware the landscape has changed considerably in
> the last decade or so. The US requires citizens to report any account
> anywhere that reaches a value of $10,000 or more, even if it’s only for a
> day. Reporting is free. The US has gotten really effective at requiring
> foreign banks and investment firms to provide information about accounts
> held by US citizens. It’s why some banks now won’t even offer accounts to
> US citizens, while the rest require onerous proofs of identity and
> citizenship. If you’re found by the US government to hold an account you
> didn’t report, penalties are steep. I might not remember correctly, but
> possibly they are around 50% of the value of the account? I watched a
> former colleague get caught, and it cost him tens of thousands of dollars
> to get right with the US government.

My apologies. An account elsewhere. I am a Canadian and I am trying to sever as many residential ties as I can, for non-residency, so I am interested in sending my savings to an offshore bank, not in my country of in employment, and outside of Canada. Hope that clears up my question a bit more.
ExpatinAsia99
Posts: 28
Joined: Thu Apr 18, 2013 6:37 pm
Location: Asia

Re: Off shore banking

Post by ExpatinAsia99 »

I was able to open an account in Singapore, however, it was because I was also opening an investment account with the same bank. This was with DBS and DBS Vickers. I was following the Andrew Hallam book suggestions.

Though not a traditional bank account, Transferwise, or Wise as they call themselves now, has multi-currency accounts now. These accounts can be used to receive money in the nominated currency. Not sure if that's what you're looking for though as they offer a debit card, but it depends on your country of residency if they are able to offer it.
just.the.truth

Re: Off shore banking

Post by just.the.truth »

ExpatinAsia99 wrote:
> I was able to open an account in Singapore, however, it was because I was
> also opening an investment account with the same bank. This was with DBS
> and DBS Vickers. I was following the Andrew Hallam book suggestions.
>
> Though not a traditional bank account, Transferwise, or Wise as they call
> themselves now, has multi-currency accounts now. These accounts can be used
> to receive money in the nominated currency. Not sure if that's what you're
> looking for though as they offer a debit card, but it depends on your
> country of residency if they are able to offer it.

I'm in Cairo. DBS is definitely on my list, but I was interested in using Saxo for the investing side of things. I'm interested mainly interested in Luxembourg or Switzlerland, but I'm open to wherever would be easiest for expat non-residents.

I follow Hallam too. Absolutely love his work!
Thanks for the advice.
ExpatinAsia99
Posts: 28
Joined: Thu Apr 18, 2013 6:37 pm
Location: Asia

Re: Off shore banking

Post by ExpatinAsia99 »

I actually have Saxo now. I originally opened DBS, but then decided to open Saxo. I have been using Saxo for years now. It's easier because it's a direct transfer, rather than transferring to DBS, then to DBS Vickers.

I looked into Luxembourg, can't remember the name of the investment bank at the time, but I think it's now called Interactive Brokers I believe, however, I wasn't eligible because of my country of residence at the time.
just.the.truth

Re: Off shore banking

Post by just.the.truth »

I wanted to keep my regular banking separate from my investing. I'm pretty new at this, so I'm not sure if how I'm thinking is correct. I wanted to have some savings that are not invested, and transfer money from that bank to Saxo (I hope that makes senes). I was also told that from Saxo as well, that investing with them would depend on my residency. This was also kind of my line of thinking for having a regular bank, and don't have to worry about moving to different countries from time to time, and simply have a regular bank I can transfer from, such as Switzerland, etc. Do you know if that's possible? Thanks again for the help!
ExpatinAsia99
Posts: 28
Joined: Thu Apr 18, 2013 6:37 pm
Location: Asia

Re: Off shore banking

Post by ExpatinAsia99 »

This is exactly how I do it. I have a bank account in the US, then I just wire my investment money to Saxo from it, my Saxo account in is USD so it's a USD to USD wire. I then have cash in my US account for spending and also in my USD account that I have in my current country of residence.

Since you are trying to avoid your home country banks, I'm not sure what you can do as I don't have to avoid banking in my home country. I have heard of other Canadians with the similar residency issue.
just.the.truth

Re: Off shore banking

Post by just.the.truth »

ExpatinAsia99 wrote:
> This is exactly how I do it. I have a bank account in the US, then I just
> wire my investment money to Saxo from it, my Saxo account in is USD so it's
> a USD to USD wire. I then have cash in my US account for spending and also
> in my USD account that I have in my current country of residence.
>
> Since you are trying to avoid your home country banks, I'm not sure what
> you can do as I don't have to avoid banking in my home country. I have
> heard of other Canadians with the similar residency issue.

lol yeah, it's so weird. Residency, as it pertains to taxation, is not as cut and dry as it is in the States. But, all we basically need to do is to sever as many secondary residential ties in order to show that we don't plan to reside in Canada in the future. I don't think it would be an issue, but I'd rather err on the side of caution. I'm sure I'll find something, and hopefully someone can throw in their 2 cents as well. Thanks again.
Helen Back
Posts: 242
Joined: Fri Dec 28, 2012 4:16 pm

Re: Off shore banking

Post by Helen Back »

My wife and I have a joint trading account with Saxo in Hong Kong (CAD$ account). But we still maintain an account in Canada and a credit card. Hasn't been a problem. Read Andrew Hallam's book, Mlllionaire Expat'. It will tell you everything you need to know.
just.the.truth

Re: Off shore banking

Post by just.the.truth »

Thanks Helen! I just picked that up actually. Will do.
PsyGuy
Posts: 10789
Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Response

Post by PsyGuy »

I would endorse SG and HK as well, personally I use HK. Swiss is also an option, but their fees tend to be higher. Wise gets a lot of play in the media. Have you looked at Bunq? They may be an option for you since it seems what you want to really do is have a hub more like a personal clearinghouse to move and hold your coin. You can then transfer coin into your various investment entities without having to be tethered to a particular financial entity for your banking.
just.the.truth

Re: Off shore banking

Post by just.the.truth »

Spot on. That's exactly what I'm looking for. I looked into Bunq, and unnfortunately they say you need to live in the EU area to open an account with them, which I don't. I'll look into Singapore for sure. Thanks!
PsyGuy
Posts: 10789
Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Reply

Post by PsyGuy »

@just.the.truth

Thats good to know.
sid
Posts: 1392
Joined: Sat Dec 02, 2006 11:44 am

Re: Off shore banking

Post by sid »

I'd avoid anything based in the EU, unless you have a good reason to choose them. The EU banking rules are strict and getting stricter. To accept transfers from other countries, you'll have to produce documentation proving where the funds came from. Such as your contract with your school, a letter from your school, possibly a letter from your local bank that they can verify the funds are coming straight from your employer, no other sources. Stuff like that. And you'll probably be asked for that every year, even if you stay at the same school. Get a bonus, or take on some contracting work? More paperwork needed before they'll accept the transfer.
Some of that depends on what country your transfers are coming from, but I've heard just this month from a colleague doing a one-off transfer of a few thousand euros between The Netherlands and Germany, and she had to supply lots of paperwork. If those two countries don't trust each other....
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