Banking internationally can be a strategic move for individuals and corporations who appreciate greater diversification of assets, increased liquidity rates at banks and even the potential for fewer taxes.
However, it can feel overwhelming as you begin to transfer holdings and start to look for the right international bank.
These are five of the most helpful tips as you start your financial journey into the world of international banking.
Research Offshore Destinations
No two international banks are the same, and no two offshore destinations are the same, either. A destination with a high overall cost of living, for example, might have greater expenses for bank account holders, while an affordable destination like Belize can pass along the low costs to their patrons.
Also, pay attention to which countries will protect your assets as well as which can offer privacy or anonymity, if that is something that you’re looking for.
Choose Online Banking When Possible
Some individuals specifically avoid international banking because they don’t realize the benefits that online banking can offer. If you opt to open up an account through an international bank, be sure to choose a bank that offers the potential to manage assets, transfer funds and check your balance entirely online.
This is a convenient way to handle your finances, and it also makes it possible to stay informed when traveling.
Pay Attention to Bank Liquidity Rates
One of the key differences between banks is their liquidity rate. In essence, this is what amount of the total account values a bank needs to keep on hand in liquid form. A high liquidity rate is a better guarantee of bank stability and the security of your hard-earned assets.
In countries like Belize, the mandatory liquidity rate for banks is as much as three times higher than in the United States, but these minimums vary from country to country and should be compared before you open up an account.
Check Out Tax Codes in Different Destinations
Many investors choose to utilize offshore and international banking specifically because it can lower their annual taxes. However, the tax rates can vary wildly from country to country, and it is important to do some research if your goal is to minimize taxation.
In Belize, there are no capital gains taxes for foreign investors, which allows you to put the profits you make on your investments back into your portfolio, helping your wealth to grow further.
Feel Free to Branch Out With Currency Types
Although individuals and corporations who choose to bank internationally are already a step ahead, you might not realize that there is the potential to bank in alternative currencies. You might, for example, want to expand your company into Europe, in which case banking in Euros makes the savviest choice.
You might also want to invest in different currencies across your accounts as a way to further diversify your holdings.
We’d love to help you make the most of your finances. Contact us today for more information.
