From brokerage accounts to trust management to precious metals, choosing to manage your wealth in another country can be very advantageous. In this article, we list the best countries in which to manage your wealth that are in the ESelfKey Marketplace.

1. Cyprus - Great for foundations and trusts

Sunny Cyprus starts off our list, and is one of the many gateways to the EU for offshore wealth management. Banks in Cyprus are familiar with foundations and trusts incorporated in offshore jurisdictions, and there are no withholding taxes on interest paid to non-residents. 

Although English is not an official language here, it is widely spoken, which certainly makes communication easier. The minimum deposit required is the lowest on our list, starting at 70,000€ (just over $75,000 in USD). 

Naturally, internet and mobile banking services are available to customers. If needed, the bank also provides you with a Mastercard Debit card. Both EUR currency accounts and multi-currency accounts are available. A personal visit to the bank is required once your account is approved, but it is a good excuse to take a short holiday to the island. 

It takes around three to four weeks to open a wealth management account, and the cost of setting everything up is $850. Cyprus is a great option for those looking to manage their wealth within the EU and pay very little in fees and taxes.

2. United Arab Emirates - A safe and wealthy economy

The United Arab Emirates is the financial hub of the Middle East and North Africa (MENA) region, and is home to two of the largest financial centers in the world - the Dubai International Financial Center and the Abu Dhabi Global Market. 

Additionally, the bank we partner with here offers wealth management services that include a dedicated wealth planner, meaning your money is in good hands. Some of the services offered for wealth management accounts are savings accounts, multi-currency debit and credit cards, mutual funds, structured deposits, and precious metals acquisition and storage services.

It is necessary to pay a visit to the bank in order to open an account here, but the average time to open an account is one of the fastest options, only taking one week. English is one of the official languages of the United Arab Emirates, which makes communication easy. 

You will need a minimum deposit of $100,000 and that needs to be maintained as an ongoing balance. The set-up costs are relatively low at $1,150. All in all, the United Arab Emirates has one of the safest and richest economies in the world, making it an ideal location for offshore wealth management.

3. Singapore - Top of the line wealth management services

Singapore is another one of the largest financial centers in the world and is a popular destination for offshore banking due to its political and economic stability. Financial stability combined with the most technologically advanced private banking facilities, stellar customer service, and a capital gains tax-free environment makes Singapore the top Asia-Pacific destination for international wealth management services.

We work with three different banks in Singapore, and each of them offers a different type of wealth management account with different qualifications. The minimum deposit required ranges from $150,000 to $200,000 and it can take from one to two weeks to open an account. Set-up fees are some of the least expensive, only costing $850. Internet and mobile banking services are standard for all accounts, and are some of the best in the world. It is possible to open a multi-currency account at any of the three banks we partner with.

In some cases, an in-person visit may be required and some accounts are only available to individuals with a connection to the area (such as a Southeast Asian business, residency, employment, and so on). If you are a US citizen, unfortunately, your account may be restricted to just a few services. For these reasons, Singapore does not rank higher on our list. Singapore is popular for offshore banking for a reason, and it is one of the best places to manage your wealth.

4. Hong Kong - Safe and convenient

Possessing the largest financial hub in Asia, Hong Kong is another popular option on our list. Hong Kong banks offer a large variety of investment and insurance products, and there are no exchange controls. English is one of the official languages here, which makes banking a breeze. Hong Kong is one of the safest and convenient places to bank, with strong wealth management and investment services. 

You will need to visit the bank in-person to open an account here, but we think the advantages are worth it. A minimum deposit of 1,000,000 in HKD is needed (about $130,000 in USD) and it takes from two to three weeks to open an account. The costs to set up an account are $1,650. 

It is possible to receive several different debit cards and credit cards in either USD or HKD, and multi-currency accounts are available as well. Hong Kong has been a favored destination for offshore banking, and it is easy to see why when you look at all the benefits available to non-residents!

5. Luxembourg - Great for investment services

Banking in Luxembourg has long been the backbone of the economy. Coupled with the fact that the country has modelled its financial system after Germany’s, you end with a place that offers stability and a wide range of financial services. There are no restrictions on non-resident bank accounts, making it one of the easiest places in Europe to open an account. 

Investment banking has been a core focus for the banking industry in Luxembourg, and the country is known for exceptional investor protection, making it an ideal place to have your money work for you. The bank we partner with in Luxembourg offers a wealth management account that is good for insurance and endowments, precious metals, trusts and foundations, and brokerage accounts.

Opening an offshore account in Luxembourg is an easy process as no in-person visit is required, and it only takes around two weeks to open your account. It is possible to open accounts in EUR, USD, GBP, CHF, and RUB, and both debit and credit cards are available to you. 

The set-up fee is one of the more expensive options coming in at $1,900, but the benefits certainly outweigh the cost. Luxembourg is an ideal country to do your offshore wealth management in if you are looking to grow your assets in a safe place.

6. Gibraltar - Great for long term wealth management

Gibraltar is a British Overseas Territory, and a hub for private banking. It is ideal to do your banking here if you are looking to diversify your investments and want access to top-notch asset management services (including brokerage accounts). The bank we work with in Gibraltar is particularly experienced with family wealth structures, including foundations and trusts. 

The official language in the country is English, and the local currency (the Gibraltar Pound) is pegged to the British Pound Sterling at par value, which makes the economy quite stable.

The minimum deposit needed to open an offshore wealth management account in Gibraltar is 500,000€ (approximately $550,000 USD). It takes from two to three weeks to open your account, and an in-person visit to the bank is required. The set-up fee is quite reasonable at $1,150. 

It is possible to open accounts in USD, EUR, GBP, and CHF, but no bank cards are available. If you are looking for long term wealth management services, Gibraltar is a fantastic option.

Conclusion - The Best Countries for Offshore Wealth Management

As you can see, it’s often worth your while to look at offshore wealth management services for all the benefits they have to offer. We recommend defining what your most important needs are when it comes to wealth management, and take a look at what each country excels in. 

Do you want your money to work for you? Then a country with strong and stable investment offers might be the best option. Are you looking to establish a trust for your children? Then look for a country that specializes in trusts and foundations. Do you want to invest in precious metals? Seek out a country that is known for their expertise in this area.

If any of these countries on this list have caught your eye, we recommend taking an in-depth look at them on the ESelfKey Marketplace. You can find all the countries that offer offshore wealth management services on the ESelfKey Marketplace under “Bank Accounts - Wealth Management”. Here you can see all the requirements and benefits - opening an account can be as easy as clicking a button.

What You Need To Open A Bank Account Online

In order to open a bank account online, you will need to provide a fair amount of personal information so that the bank can verify your identity. The financial institution may also require an initial deposit. Here is some of the information you will need to provide to the bank:

• Personal information including social security number, tax ID number, date of birth, ad a government-issued ID
• Contact information such as mailing address, phone number, and email address. Providing your home address (where you actually live) is required by federal law, but it is possible to provide a P.O. box for your mailing address
• Funding information such as where the money will be coming from. Some bank accounts require you to deposit funds (ranging anywhere from $25 and up) in order to open an account

All of this information is part of know your customer (KYC) compliance, which helps financial institutions ensure that they know the identity of who is opening a bank account. It also helps prevent money laundering.

For some financial institutions, your account is opened once you provide the above information. Any legal agreements can be signed with an e-signature, and you can start using the account right away. If you know where you’d like to open a bank account, you can visit the bank’s website and look for an option to open an account now.

Some banks will let you begin your application online but will eventually require an actual signature. In these cases, you might get a “Welcome Kit” in the mail which contains required documents. Although checks are becoming obsolete, financial institutions still like to have a copy of your physical signature to verify check or card purchases in the event of a dispute.

If you want to start using your account as soon as you’ve opened it, it is probably best to call the financial institution and ask what their process is. You may be better off going in-person to open a bank account, or finding a bank that will let you open an account fully online.

Problems With Opening A Bank Account Online

For some cases, you still might have to visit a bank or provide more information to open an account. Some common reasons are:

• “Thin credit”: One way that financial institutions verify your identity when you open an account is to check your credit score, even if you aren’t borrowing money. If you don’t have a substantial credit history (due to age or borrowing habits), the bank won’t find anything. Therefore, the financial institution may require you to visit a branch in-person with a government-issued ID in order to open your account.
• Under 18: If you are under 18, you cannot open a bank account on your own. If you just want to use a checking or savings account, there are a few options but you will need a guardian to co-sign the account. This might also require you to visit a branch in person.
• Account history: If you have a history of overdrawing your checking accounts, you might not be able to open a new checking account online. In this case, it would probably save you time by going to a branch in person.
• Citizenship: If you are a US citizen, opening an account online is pretty easy. If you are from another country, you might need to visit a branch in order to open your account.
• Entity accounts: While personal bank accounts are relatively easy to open online, a business account or a bank account for an organization is another matter. Some banks require you to go to a branch, while others are happy for you to submit documents by mail. Opening entity accounts online is becoming more commonplace, but it is certainly not a given.

As you can see, opening a bank account online is not entirely seamless and you might still have to pay your bank a visit regardless of if you started the process online or not.

How To Open A Bank Account Online Through ESelfKey

The ESelfKey Bank Accounts Marketplace is a milestone in the blockchain space and for the first time, allows you to set up a foreign bank account from within a cryptocurrency wallet. Corporate and Personal Bank Accounts in Hong Kong and Singapore are already available, and we will be adding more jurisdictions in the near future.

The Bank Accounts Marketplace is particularly user friendly, as everything is done through the ESelfKey Wallet and the KYC process our expedited by the ESelfKey ID. It may well be the world’s fastest application for a bank account ever! How does it work? Keep reading to find out.

Getting Started

We’ve designed this process to be as simple as possible for you - the user. Everything is clear and transparent so you know exactly what you need to do and what the benefits are.

The first step is to download the ESelfKey Wallet which is free, open-source, and designed to keep your tokens safe. In addition to being a cryptocurrency wallet, it also allows you to manage your identification documents and provides access to the ESelfKey Marketplace. You can download it here for free.

The next step is to set up your wallet, which is very simple to do. However, it is an important step that needs to be done correctly. You will need to securely store your private and public keys, as ESelfKey Wallet is non-custodial and cannot recover your private key if you lose it.

Once that is complete, you just have to set up your ESelfKey ID. This is where your “know your customer” information will be locally stored and you can use this information to access new service providers. You can reuse the same KYC data as many times as you need, so you don’t have to go through many different sign up processes! Once your ESelfKey ID is completed, you can use to it open multiple bank accounts abroad.

Using your ESelfKey ID to open a bank account online

This is a very straightforward and easy process. Once you are logged into the ESelfKey Wallet, click on the Menu at the top right of your screen and select “Marketplace”. Six different Marketplaces will appear and you will want to click on the bank accounts Marketplace. Now you'll see a screen similar to this one:

Here you can clearly see what bank accounts are available to you (the jurisdictions shown above are just an example), and what the basic requirements are. If you want to learn more about one of the options, simply click on “Details”. There you will find the eligibility criteria, KYC requirements, costs, and any other relevant conditions as well as benefits. Here you can also see if a visit to the bank is required or not, so you can select the account that is right for you.

Once you have decided which bank account you would like to open, it is time to submit your request. All you have to do is click on “Open Bank Account” at the top right of the screen. You will then see a screen detailing exactly what is included in the service provided. To continue your application, click on “PAY FEE”.

Next you will see a checklist showing what KYC documents you need to provide to open the account. As you have already completed your ESelfKey ID, this information is taken directly from there and can be used again for all of the ESelfKey Marketplace services.

Once all the information is submitted, the next screen will check your ESelfKey Wallet to make sure that there are sufficient funds to complete the purchase. If the funds are in your Wallet, the request is submitted. And that’s it! You just applied for a bank account online.

In the next few days, you will receive emails updating you on the status of your application and letting you know if any additional data is needed.

Conclusion - How To Open A Bank Account Online

While opening an online bank account through a financial institution is becoming easier, most banks still employ tedious KYC processes and require you to jump through endless hoops. If you want to open accounts with different banks, then it is annoying to fill out different applications and submit multiple copies of documents. 

With the ESelfKey Bank Account Marketplace, this process becomes streamlined. You only need to collect your KYC documents once, after which they are managed in the ESelfKey Wallet for you to use as many times as you need. Plus, your documents are securely stored, so you don’t have to worry about your personal details being stolen.

The future of banking is now!

The truth is that for short trips or small transactions these services work well. For longer stays or more sophisticated usage however both fall short, as many ordinary banking services are not included. Neither for example provide interest rates, loans or even safety guarantees.

That’s just the tip of the iceberg, here are ten excellent reasons to open an Offshore Bank Account:

1. Maximise Your Freedom

We should be free to live our lives without being dependent on faceless corporations and governments that do not have our best interests at heart. This belief is why ESelfKey’s mission is to empower individuals. 

That being said, Banks still hold a position of power in modern society and can make life difficult. Therefore it makes sense to maximize your freedom by opening a bank account abroad. This will significantly reduce your dependence on your local bank, and gives you much more flexibility in the long-term. 

In addition to an offshore bank account, it also makes sense to look at digital assets as an interesting solution. Cryptocurrency represents a significant shift which allows everyone with an internet connection to operate as their own bank. By creating a ESelfKey wallet for example, you can send and receive payments almost for free, without having to worry if your Bank might shut down your account or your government might enact a nonsensical piece of legislation. Thanks to third party service providers it is now even possible for business owners to pay their team members in KEY and other ERC20 tokens. 

The more freedom you have the better - which is why a foreign bank account and digital asset wallet makes a lot of sense.

2. Earn Interest On Your Deposits

Europe and many other socio-economic regions have experienced a low-interest environment for years. Individuals are punished for holding money and instead are incentivized to spend. The interest rates offered by a typical savings account do not beat inflation making it unattractive to save.

Foreign bank accounts provide an attractive alternative. Countries like Azerbaijan and Georgia offer interest rates on savings accounts north of 7%. This includes inflation, meaning that you can reasonably expect the purchasing power of savings to increase by 7% or more within 12 months of making your deposit. 

Of course, this is not guaranteed and you need to do your own research. Undoubtedly however, many foreign countries offer more attractive interest rates than those found in the Western World. 

3. Access A More Stable Banking System

The stability and strength of your banking system depends on many factors - not all of which are clearly discernible. Two things to keep in mind are: 

1. The track record of local banks 
2. The risk from immediate threats

The first point refers to the infrastructure and history of your local banking system. Newly created institutions are more likely to make mistakes and fold, than banks with a strong track record. 

Additionally, you might live in an area in which banking is not particularly common - 31% of the world’s adults are underbanked. In such cases, a foreign bank account can not only protect you from a weak domestic system but can give access to a host of powerful financial instruments capable of improving your quality of life. 

The second point mentioned above affects all of us. Previously sound financial institutions can collapse without prior warning. Lehman Brothers, the bank that caused the global financial crisis and subsequently folded, was founded in 1850 - nobody identified the immediate risk coming from subprime mortgages. 

More recently, Deutsche Bank and Swedbank were forced to pay massive fines due their failed AML practices. Here, perhaps, we can identify an immediate threat before it wreaks havoc on a previously stable banking system. Regardless of the outcome, an offshore bank account can mitigate the risk and allow access to a more robust financial system.

4. Reduce Your Risk

The global financial crisis taught us that the international banking system is frail. All it takes is for one bank - like Lehman Brothers - to collapse for the entire network to be imperiled. 

In 2007, the crisis began with the collapse of the subprime mortgage market, something that nobody saw coming. In the following years the western banking system was in grave difficulty and only survived by the skin of its teeth. 

Economic collapse is not limited to the Western world. According to the IMF, Venezuela’s inflation rate is projected to reach 10,000,000% in 2019 - which would not only precipitate the total collapse of the economy but of the banking system as well.  

Clearly not all banks are created equal and a foreign bank account allows you to hedge against a collapsing local economy. 

Interestingly, online “banks” pose an even greater risk due to their lack of accountability to the individual. N26 and others routinely close hundreds of user accounts without prior warning or explanation. Clearly the idea of waking up to find your bank account - on which you rely to pay bills and receive salary - locked is a terrifying proposition. 

Instead, open a bank account abroad to reduce risk and minimise your dependence on one financial institution. 

6. Diversify Your Currency

Limiting your personal wealth to one currency is risky. Prices are not stable and are typically volatile in times of economic or political turmoil. Below you can see the GBP/EUR exchange rate over the last five years, which clearly shows the significant losses the Pound has had to endure. 

As uncertainty over Brexit grows, experts believe that the price will decline further.In this case vast personal fortunes can be eaten up by the mistakes and mismanagement from local government. 

To mitigate risk, it makes sense to open an offshore bank account which allows you to store some percentage of your wealth in another currency. 

7. Rent Or Buy A Local Property

Another advantage of a foreign bank account is that it can be used to rent or buy property. Most countries require a tenant or landlord to have a local bank account. In Germany for example, it is not possible to rent property without a comprehensive credit check which requires a bank account within Germany. 

In order to maximise freedom, it is essential that we are not bound to one geographic location. Instead, a foreign bank account allows you to take a meaningful step towards moving and living wherever you choose.

8. Get Paid More Quickly

For business owners a foreign bank account often makes sense because it removes the friction of international payments. Domestic wire transfers can be completed in just 24 hours, whereas international wire transfers can take up to five business days. 

If your selling goods and services it doesn’t make sense to wait 5 business days until the money has reached your account. Such a delay ruins your customer experience and clients will surely look elsewhere. 

Instead, think about where the bulk of your customers are based and register for a bank account in that jurisdiction. Not only will it significantly boost your cash flow but it will also reduce fees. 

9. Avoid Costly Transaction Fees

As you will be aware, Banks charge for outgoing and incoming wire transfers. Fees can easily surpass $30, making it incredibly expensive to transact with international recipients. According to NerdWallet the median fee for an international outgoing wire transfer is $45 which is simply ridiculous. 

In a time of cryptocurrency and the world wide web, sending and receiving money should be no more expensive than sending an email. Unfortunately, digital assets have not reached the mainstream yet so a foreign bank account is often the best alternative. 

Domestic wire transfers cost roughly half of the international equivalent, which can amount to a significant sum of money for businesses servicing a global client base. Open a bank account abroad to cut down on fees.

10. Guarantee Your Money’s Safety

Banks typically operate under a national scheme which guarantees the safety of your money. In the UK for example, the Financial Services Compensation Scheme (FSCS) ensures that bank account holders are guaranteed to receive up to 75-85k GBP even if the bank collapses. 

Using online banks, like Transferwise, this is not the case. These are regulated as Electronic Money Institutions and act as middlemen between the customer and the bank. In the event that the bank folds, the customer’s money is not protected. 

Additional Reporting For US Residents

Opening a bank account abroad often requires additional reporting, especially if the account holds a significant amount of funds. 

Therefore, a US resident with a foreign bank account holding more than $10,000 is required to report it to the US government. Additionally, income tax needs to be paid on earnings generated by the account. Keep that in mind if you earn interest for example, on a deposit in an offshore bank account - you will also have to pay federal income taxes.

Conclusion - Open An Offshore Bank Account 

As you can see from the extensive list provided above there are a number of excellent reasons to open an offshore bank account. 

Not only does it provide a greater level of freedom, by reducing your dependence on corporations and governments, but it also reduces your risk. Currency, economies and political situations have a tendency to deteriorate and a bank account abroad is an excellent way to hedge against such catastrophes. 

To learn more about opening a bank account abroad, make sure to download the ESelfKey Wallet and visit the bank accounts marketplace.