Offshore Banking for Businesses: Top Destinations to Open a Corporate Account in 2023

Many businesses today operate in a global environment, where they deal with customers, suppliers, and partners from different countries and regions. This may potentially pose various challenges and opportunities for their financial management and growth. One of the ways to overcome these challenges and seize new opportunities is to open a corporate account abroad. Below, the International Wealth team will explain why opening a corporate account abroad is absolutely worth your time and money and what the benefits and considerations of doing so are.

Tax optimization, privacy, asset protection, diversification, access to international markets and services – you name it. These are all the multiple benefits for businesses that offshore banking has in store. However, not all offshore destinations are created equal. Some of them may have more advantages than others, depending on your business needs, goals, and preferences. Therefore, do your research and compare different options before choosing an offshore destination to set up a corporate account. Or, even better, consider choosing a corporate account with expert help.

Intrigued already? It is for a reason because below we will explore some of the most popular offshore destinations to open corporate accounts in 2023. We will also highlight some of the features, benefits, and challenges of each destination.

British Virgin Islands

Let's start with the ultimate offshore jurisdiction – the British Virgin Islands. A British Overseas Territory in the Caribbean Sea, the BVI is known for its favorable tax regime, strong legal system, and high level of confidentiality.

Here’s why a corporate account in the BVI may sound like an appealing idea:

1. Zero corporate income tax, capital gains tax, withholding tax, or value-added tax

2. No exchange controls or currency restrictions

3. No public disclosure of shareholders or directors

4. No audit or reporting requirements

5. Access to a wide range of banking services and products

6. Ease of incorporation and account opening.

At the same time, a decision to open a corporate account in the BVI may be bound with certain challenges, including high incorporation and maintenance fees (well, if you can afford them, go ahead), increased scrutiny and regulation from international authorities, as well as reputational risk due to association with tax evasion and money laundering.

Cyprus

Surprised to see an EU jurisdiction on our list? Cyprus is not only a spa island in the Eastern Mediterranean Sea, but also a great place to bank, known for its strategic location, attractive tax system, and modern banking sector.

And here’s why:

1. Low corporate income tax rate of 12.5%

2. No withholding tax on dividends, interest, or royalties paid to non-residents

3. No capital gains tax on the sale of shares or securities

4. Access to double taxation treaties with over 60 countries

5. Access to EU markets and services

6. High-quality banking infrastructure and technology

7. Professional and multilingual banking staff.

We won't hide it, traps and pitfalls are also there, with high minimum deposit and balance requirements, exposure to currency fluctuations and exchange rate risks, and potential political and economic uncertainty due to the Turkish-Cypriot conflict among them. Beware and proceed with caution, if you decide to open a corporate account in Cyprus.

Bermuda

A traditional offshore haven in the North Atlantic Ocean, Bermuda boasts a stable political system and high living standards. Most likely, you will be fascinated by some of the benefits that opening a corporate account in Bermuda offers:

1. Zero corporate income tax, capital gains tax, withholding tax, or value-added tax

2. No exchange controls or currency restrictions

3. High level of confidentiality and privacy

4. Access to a diverse range of banking services

5. Protection from civil unrest and natural disasters

6. Ease of incorporation and account opening.

Above, we named the reasons to go ahead with opening a corporate bank account in Bermuda. Yet, high incorporation and maintenance fees, limited accessibility of banks, increased scrutiny and regulation from international authorities, and potential reputational risk due to association with tax evasion and money laundering might make you cautious about it. Well, once again, it never hurts to think twice.

Antigua and Barbuda

Antigua and Barbuda is a twin-island country in the Caribbean Sea. World-famous for its tourism industry, friendly business environment, and competitive banking sector, Antigua and Barbuda is also a place you’d like to stay, either for a vacation season or permanently. As a banking jurisdiction, it is no less appealing:

1. Low corporate income tax rate of 25%

2. No withholding tax on dividends, interest, or royalties paid to non-residents

3. No capital gains tax or inheritance tax

4. Access to double taxation treaties with over 20 countries

5. Access to regional markets and services through the Caribbean Community (CARICOM)

6. Modern banking infrastructure and technology

7. Customer-oriented banking staff.

Again, you can’t but come across certain challenges when opening a corporate account in Antigua and Barbuda, including moderate compliance and due diligence requirements, moderate minimum deposit and balance requirements, exposure to currency fluctuations and exchange rate risks, and potential vulnerability to natural disasters such as hurricanes.

Georgia

Have you made up your mind already? Think twice because we have an ace up our sleeve, and this is Georgia. The nation in the Caucasus region of Eurasia is known for its strategic location, economic reforms, and emerging banking sector, and here’s why banking there is definitely worth a try:

1. Low corporate income tax rate of 15%

2. No withholding tax on dividends paid to non-residents

3. No capital gains tax or inheritance tax

4. Access to free trade agreements with the EU, China, Turkey, and other countries

5. Access to regional markets and services through the Commonwealth of Independent States (CIS)

6. Fast and easy account opening process

7. Affordable banking fees.

If exposure to currency fluctuations and exchange rate risks, a limited range of banking services and products, and potential political and security risks due to the conflicts in the region do not scare you, go ahead!

It is not at all easy to open a corporate bank account abroad nowadays. Unfortunately, the noble aim of fighting terrorism affects honest business people as well. Yet, you can still open a foreign bank account for your business, and we are ready to help you with that. Get in touch with International Wealth experts for a free personal consultation on how to proceed!