In Europe and in North America many banks are in crisis and offer their clients lower and lower interests every year. In addition, Governments promoted a strategy based on fear and unnecessary bureaucracy and allowed banks to apply a tighter regulation based on the client’s knowledge, which is making it increasingly difficult to open a foreign checking account.
However, nothing is definitively lost and you have still many opportunities to diversify your asset and protect yourself from this difficult situation.
Of course, if you open a checking account abroad you need to consider the stability of the currency of the country in question.
Now, let’s get familiar with this world and let’s discover much more about your opportunity to diversify your asset and open a checking account in a foreign country.
SOME MYTHS TO DISPEL
- The first myth you need to dispel is: offshore is illegal. Offshore is not illegal and does not mean “Tax haven”. An offshore bank account is an account you can open by financial banks and institutions in offshore jurisdictions, that is in country and/or territories with a privileged tax status. It means that their tax status is privileged and thus more favourable than the European/American one.
- The territories, where you can open an offshore bank account, grant strict confidence about bank customers both natural and legal persons. All this because these credit institutions practice and assure banking secrecy, that is their right not to disclose to third parties information on Account Holders.
- Let things see as they are: the days of encrypted accounts in Switzerland are gone…..|! Opening such an account has become virtually impossible. And nobody wants you to circumvent your country’s rules or the rules of the country you are going to deposit your money.
- In any case, banking secrecy is not the only advantage of the offshore bank accounts. Indeed, these jurisdictions do not often have a strict regulation on company law and high levels of controls by the authority.
- Offshore bank accounts enjoy another benefit: that is the lack of cooperation from government authorities and offshore financial Institutes. So OCSE catalogued offshore jurisdictions as non-cooperating countries. As a result, there was a refusal to provide any information, datum or clarification about the Account Holder.
- The government authorities could cooperate only in the event of an offence. In fact, criminal offences nullify banking secrecy. It is necessary to know that the offshore authorities deliver a subject to foreign authorities not only if he/she committed a crime established by the foreign legislation, but also by the offshore one.
- However, we must remember that until a few years ago offshore bank accounts were used by tax evader, but currently most of the offshore account holders are common people. Most of them decided to open an offshore bank account to prevent a bank account foreclosure. Other reasons are also the serious consequences of a divorce.
- For example in Italy many small savers as a result of the agreement between Italy and Switzerland, decided to transfer their assets to offshore jurisdictions.
- Offshore centres most commonly used to open a bank account are: Hong Kong, Belize, Panama, Nevis, Cayman Isles, St. Vincente, Jersey, Guernsey, Isle of Man. In many of these jurisdictions you can open a bank account in a very short time, at little expense and with a few formalities. At the same time you can set up companies and register them to trustees. Indeed, under the company law secrecy, not only the confidentiality of Account Holders is safeguarded, but also the confidentiality of those who set up and manage a company.
- In brief: bank secrecy and company law secrecy, but also offshore companies and offshore accounts are two sides of the same coin and they complement one another to provide you a useful and easily accessible kit of offshore instruments, even if you are a small saver!
ANOTHER COUNTRY NOT IN THE OFFSHORE LIST BUT FULL OF ADVANTAGES: PARAGUAY, A YOUNG AND ENTERPRISING STATE
Now let’s talk about Paraguay a wonderful, young and little known country of South America. Paraguay is a country full of resources and it is a very good opportunity to begin your new second life or to enjoy your retirement after your working life.
Let’s see what are the main advantages you can obtain if you decide to take up residence in Paraguay. No doubt that if you decide to take up residence in Paraguay, you will free yourself from a burden of heavy taxes. The good news is that Paraguay is a real tax haven, if you compare this country with European countries or north American countries. Indeed in Paraguay you will pay taxes only on the income generated from local sources. For example: if you sell abroad and have your residence in Paraguay, you do not pay taxes. That simply means: you pay taxes only if you sell services or goods in Paraguay. In terms of numbers: in Paraguay you pay 10% for the personal income tax. A number similar to that of Balkan States like Bulgaria.
In this way you can invest the money you saved in your business or activity.
In this regard, remember that in Paraguay any foreign academic degree is accepted without even a validation on the ground. So, you can easily practice your profession as you did in your country and pay lower taxes.
And about taking up your residence in Paraguay you have nothing to fear: if you follow all the procedure correctly you will obtain your residence in a short time and you will be legally recognized as a person resident in another country and you will pay your “low” taxes in Paraguay!
PARAGUAY: A COUNTRY FOR EVERYBODY’S TASTE
Paraguay is a country with a great potential. Maybe it is not one of the most known countries of South America, but its wonderful natural beauties, its interesting and characteristic cities and towns will remain in your heart and in your mind forever.
Rivers, lakes, hills, Amazon forest, desert, flowers, plants, animals: a book would not be sufficient to describe in detail the wonders of this country with its colours, its sounds its sun, its sky.
Even the cities and the towns offer very much to tourists and residents and are a pleasant place to live. Asunción is the capital and in close proximity there are ten other town, which form the urban agglomeration called “Gran Asunción”.
One of these town is San Lorenzo the town of “Gran Asuncion” with the most inhabitants.
San Lorenzo is famous for its beautiful cathedral and for its Universities. As a matter of fact, it is the University Centre of Paraguay and here you can find the best Universities in the country.
San Lorenzo is famous also for its beautiful shops and it is a great place if you love shopping!
In addition, its architecture is very interesting and original. A nice town to discover and to live!