Card systems are generally CIRRUS and NYCE, used for both credit and debit cards in South Africa. There are no reserve asset requirements. Does anyone know which banks accept non UK residents? Plus, it gives you avenues to U.S., Hong Kong, China, Europe, and more. The money is usually moved from a South African bank account to a foreign bank account from where it can be deployed into a virtually unlimited choice of investment options and product providers. Please use the inquiry form or phone number on this page. Offshore banking is illegal. Foreign Residency, Offshore Bank Accounts and Asset Protection for South African Citizens South Africans are under attack from all sides… again. Additionally, the opening and maintenance costs are usually fairly low. Feel free to talk to one of our financial professionals. The only exception to this privacy law is in the case of criminal acts. Trust Formation They provide refuges for those seeking to safeguard funds from the perils of undue regulation and taxation. Visit our COVID-19 page for any essential banking needs during the lockdown and the official SA government portal to stay informed about our fight against COVID-19 A South African private company will most likely be a tax resident in South Africa and subject to income tax at a rate of 28% and capital gains tax at a rate of 18.6%. Then you can choose the jurisdiction accordingly. Switzerland levies no taxes on interest, dividends or inheritance, if a Swiss company does not earn those profits. If you're not from South Africa and you want to open a Capitec Bank account, here's what you need to know. An offshore bank account may sound like something out of a James Bond movie. Though they all offer a comparatively confidential and secure environment, it bears consideration to outline what the banking goals are. This amounts to decreased regulation on the depositors. The Offshore bank was off to a running start! There are no additional taxes or regulations and the Financial Services Commissions maintains high standards. This means that that your wealth is well-protected. In addition, you want only the safest and most secure financial institutions in the world. Americans, Africans, Asians, etc., found these Offshore bank accounts quite useful for a myriad of reasons. In line with South Africa Revenue Service rules, Capitec has provided a tax-free savings account with the following benefits: You are permitted to open one tax free saving account at any of Capitec branches. Many of these jurisdictions rely on foreign capital held in their banks as their primary economic factor. You will, however, be charged at a rate of up to 30% for dividends. Here is a related article on Cayman Islands Banks and another on South African citizens can take a maximum of ZAR 10m a year offshore subject to tax clearance, or a maximum of ZAR 1m without tax clearance, although you will need to register this with the reserve bank . It is an unfortunate fact that Europeans have always been subjected to relatively heavy. Certain bank accounts require a minimum amount for the initial deposit, a minimum account balance, and other qualifying factors. The Citizen brings you breaking news, current affairs, celebrity and entertainment news, as well as sport news throughout the day. We will not contact you for any other purpose, or pass your details to anybody else. In fact, they’ve developed an economic niche for themselves based on the ease with which people can avoid taxes through their bank account there.In addition to offering very little tax rates, the Cayman Islands have confidentiality clauses that protect the privacy of investors. Singapore may be your best choice. With the most technologicall… Additionally, Cayman Islands banking law includes confidentiality clauses for their clients. I’m in the UK at the moment and will be here from time to time over the coming year. As a South African resident living abroad, the Reserve Bank, including SARS, has certain exchange control allowance rules about how you’re permitted to access the money you’ve left back home. Feel … However, some weigh their benefits in taxation, while others in confidentiality, and so forth. Unlike their banks at home, these Offshore banks were not regularly subjected to political turmoil or economic strife. That is, as having an account in Euros can be useful throughout Europe. Withdrawals will be paid to your Nedbank transactional account. The basic requirements are going to be similar to opening an account in your home country. If this tax clearance certificate has not been issued by SARS, South Africans can still take up to R1 million offshore per year (referred to as your Single Discretionary Allowance). These jurisdictions also often allow for a relaxation of restrictions with respect to the types of offshore banking accounts. Thus, regulators dictate how the bank handles and manipulates the funds for maximum depositor safety. You’re never going to be able to open an offshore bank account at the push of a button. Oct 24, 2008. Traditionally viewed as part of tax avoidance schemes, this view is outdated and offshore bank accounts are suitable for people who work abroad or have foreign investments. Nevis companies have great benefits for company owners and shareholders / LLC members alike. The majority of the offshore jurisdictions have prudent, sound regulations. The account process is usually fairly easy. Hence, they prove easy targets of the FATF (Financial Action Task Force) looking for money laundering or other criminal activity. We have been working with citizens from South Africa for years and will be happy to assist you. Expats wanting wealth management and tax planning services on top of a basic bank account should consider an offshore private bank. You need to set things up properly. Moreover, professionals generally reserve the term for the banking institutions located where they have high regard for  depositor privacy. The reasons to take your hard earned rands to foreign shores have not changed from an investment viewpoint. As of 2004, the SBA revised the Depositor’s Protection Agreement. Tax Preparation Bank accounts usually charge fees and you can typically find a range of deals or packages for South African bank accounts, such as free withdrawals. The privacy laws in Switzerland plus the asset protection laws of the Cook Islands or Nevis make that possible. You would then need to place the transaction through an authorised dealer, which most South African banks are. The leaking of information about offshore accounts has become common. Thread starter Jump123; ... Where is the best and easiest place to open up a bank account and who are the most recommended banks available? African Bank achieved a positive sentiment score for 2020. Alternatively, they can be in landlocked countries such as Switzerland. This time it may turn into a full blown civil war. Thank you for your interest in our Offshore Reserve Savings Account ... Open an international bank account today to support your global lifestyle and wealth management. There are many tax havens in the world. Setting up offshore bank accounts isn’t only for villains. This is a term that Investopedia defines as a country that offers foreign individuals and businesses a minimal tax liability. Offshore banking is often associated with a high level of financial sophistication and, sometimes, chicanery. By using our website, you accept our use of Cookies. Most banks in South Africa are open from Monday to Friday, from 9am to 3.30pm. But the truth is offshore accounts, despite the bad reputation anything offshore has … Soon the rest of the world was “in the know.” They began to look at these havens as viable solutions to their needs. Whereas, those in some countries, such as the US that taxes its citizens on worldwide income. With a low entry point, the Standard Bank Optimum Account is your door to a world of international banking. That being said, the process is relatively fast; it only takes about one week, and is relatively inexpensive, costing only $850 to open an account. Depending on the jurisdiction you choose, this organization has relationships with secure offshore banks that offer the utmost in stability and safety. The offshore bank accounts are listed in alphabetical order to ensure neutrality. It has become very hard for South Africans to open transactional bank accounts offshore. A small minority of the offshore jurisdictions do poor jobs of managing and regulating their banking systems. Moreover, Belizean international banks only cater to their international clients – no local clients allowed. We are not advisers ourselves, however all the advisers we work with are fully regulated by the appropriate authorities. Before I get into what you’ll need to do to open an offshore account as a citizen of South Africa, let me point out that your status might change. All of the countries described above have benefits beyond what they are “best at.” Some pay higher interest rates than domestic banks. That is a difference of 29% that gives it a pretty low real interest rate, per Go Banking Rates. At the very least, your assets and safety are at risk. This includes the NASDAQ, London Stock Exchange, International Securities Exchange, and more. To review our Privacy and Cookie policy, please click here. You don’t have to be a high flier to have a foreign currency account or even an offshore bank account which have now become an easily available and relatively affordable option for South Africans who would like to hold some funds offshore. Plus, some banks have additional perks for frequent travelers. People will offer a lot of different advice when it comes to the best offshore bank accounts. The jurisdictions also have varied characteristics, and what you feel is the best choice for you may not be the same for another individual. Broad product portfolio. Their banks also have cutting edge technology. The islands have developed a strong regulatory framework for their offshore banking services. It is important to note that, although Caymans offer significant tax benefits; many countries, such as the US and the UK, tax their citizens and residents on worldwide income. The purpose of offshore bank accounts is to provide a location for people to receive money in multiple currencies outside of their country of residence or domicile. This was as true on the British Isles as it was on the continent. Lloyd's Premier International Account is designed for high earning expats who need to manage multiple currencies while living outside of the UK. Other false accusations have centered around criticism of unsafe environments, poor regulation, etc. They then forwarded it to the account opening department who stated that they would help us open an account, as well as links welcoming us to Canada etc. There are many unquestionable benefits provided by establishing an Offshore bank account. My savings account with the Royal Bank of Canada opened this week and I've already sent money across. Switzerland’s political and economic climates are stable. Plus, the authorities can fine them up to 50,000 Swiss francs. Stride across borders with confidence when you open a Standard Bank International account. This includes protecting their assets from lawsuits, creditors and judgments, as well as tax savings and business expansion. Compare the requirements for each type of account you're interested in opening to find one that will work best for your financial needs. Plus, dividends may be declared by the company’s directors. Mr Gilbert says while the charges are higher, it can be worth it. Plus there is a once yearly reporting to foreign tax authorities to avoid tax evasion. Outstanding research. Plus, our personnel can work with your accountant to be sure you are following the appropriate tax laws. While Seychelles is a beautiful place, it has jumped the shark in terms of … Opening an account in any one of these countries will vary in difficulty and expense by country and bank. Europeans were faced with the prospect of watching their hard earned assets and wealth diminish. There are many different types of bank accounts available through Swiss banks. Please enquire at your nearest FNB branch should you need this form. There’s the single discretionary amount that’s capped at R1 million annually and then there’s a foreign investment amount, capped at R10 million. Both need to be considered. Offshore bank accounts are bank accounts which are, unsurprisingly, located offshore. Then, perhaps they can regain their former luster. When it comes to safety of your financial picture and planning your protection, keep these tips in mind. Examples of banks taking South African customers include ABSA, First National Bank, Standard Bank, Investec Bank, Post Bank and Nedbank. Switzerland has been a tax haven for over a hundred years – and longer than the island nations. I'm looking for a trusted expert who can assist me with... Update: Please be aware that despite the Coronavirus (COVID-19) pandemic, we are operating as usual and our partners will be conducting initial consultations online and by telephone. Download our free resource kit and learn how to … Here, you will see more information about these two popular jurisdictions. That is, they shelter assets from the perils of civil, economic, or political strife in their home countries. In Global Finance’s most recent list of safest banks, one of Germany’s banks takes the number one spot. This agreement guarantees that in the event of bank failure, depositors will still receive their legally privileged claims. So why Belize? The Cayman Islands have a strong international reputation, offering a full range of financial services to a variety of clients. This isn’t because some of them are necessarily wrong – there are just a lot of options out there. The HSBC Expat Premier Account is an award-winning bank account available in sterling, dollars or euros. BVI was the former winner in this category. The Islands are also a tax haven. People open these accounts for a variety of reasons. You’ll notice, however, the only Swiss banks that have had issues are those banks with branches located outside of Switzerland. Since 1906. There are many choice when it comes to choosing the country where opening a bank account offshore. Those with purely Swiss locations continue to maintain strong privacy. Then you can get started on the offshore bank account that’s best for you. Today, offshore banks continue to keep their end of the bargain. Option 2: Offshore full banking account. Then do some unbiased research to examine where illicit funds are truly held or “laundered.” This will shed some light on the situation. If you haven’t lived and worked overseas, having a personal account outside of the country is quite rare. Further, these poorly organized and run jurisdictions are often manipulated by illicit depositors. A handful of countries adopted sound, pragmatic banking rules and regulations. Download our free resource kit and learn how to … Plus, they are competitive in the Euro currency markets. © 2012-2020 Experts For Expats Ltd | Email:, Experts for Expats Ltd is a company registered in England and Wales with company number 10177644. So many of our liabilities are priced in developed market currencies that being able to afford these things going forward is going to become increasingly onerous. Leaving income-producing assets in the US may be advantageous for foreigners. PSG's offshore asset swap account allows you to invest offshore without using your offshore allowance. If you spot an error, or have some feedback about the products on this page please email us at For more information, please contact us at or call (619) 483-1708. The demand for offshore bank accounts and second residencies has spiked in the last couple of weeks. When it comes to finding the best offshore bank accounts, you can at times be overwhelmed by a wide range of choices available. There is no law requiring Nevis companies to have share capital. By and large, however, the regulators want to give the depositors a wide array of banking and investment options. Plus, these banks are often their main source of foreign investment. Any interest and income earned will need to be reported to the South African Revenue Service (SARS) and the relevant tax must be paid. Plus, the larger jurisdictions distort their reputations as the stomping grounds of the criminal underground. The more popular offshore jurisdictions often provide a substantial decrease in tax liability. Depending on the jurisdiction you choose, this organization has relationships with secure offshore banks that offer the utmost in stability and safety. Expats need look no further if they want the assurance provided by an established bank able to offer holistic banking solutions. I hope you’ve found this article on how to open an offshore bank account, get residency in a foreign country, and build an asset protection structure for citizens of South Africa to be helpful. This is a bank account held offshore, usually in one of the Channel Islands. At the same time, the media has portrayed foreign banking accounts unfairly. One of the reasons people choose Singapore is because of its reputation as a stable, safe place to store assets. They attempt to paint them as choice locales for money-laundering schemes. Read the banking myths section on this website for more information. Offshore Banking Germany does enforce foreign judgments. For our purposes here we will focus only on those proven to provide quantifiable benefits as outlined above. You can deposit any amount up to R33 000 per year (single or multiple deposits). 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