5 Advantages of Offshore Banking in Belize
If you’ve considered banking offshore in the past, then you might have explored the options for international banking in various countries. One nation that comes up again and again among savvy investors is Belize.
Belize is already a popular location for vacations and retirement, and it continues to grow in popularity as an offshore banking destination. There are a multitude of advantages to banking in Belize, but let’s take a closer look at just five of them.
1. Country with a Stable Currency
With so many jurisdictions that offer offshore banking, one of the most important things to consider is whether the nation itself has a stable economy. After all, a dip in the economy could jeopardize the stability of banks, the guarantee on your holdings, or even the value of your stored assets.
Fortunately, Belize is a nation with a very stable economy. That stability starts with the country’s currency, the Belize Dollar.
The Belizean dollar is tied to the value of the United States dollar at a rate of 2:1. That means that USD $1 is equivalent of BZD $2. Whether you convert your dollars this year or next year, that inherent ratio of value will remain the same. That can be incredibly comforting to global investors who want to minimize their risks.
Of course, you can still open bank accounts in Belize in other main foreign currencies as well, giving you even more financial options.
2. Offshore Banking with High Liquidity Requirements
The best way to describe liquidity is to think about how much cash a bank has on hand on any given day, or how quickly the bank can convert assets to cash for their customers. In virtually all cases, you will want to have an account with a bank that has higher, rather than lower, liquidity rates.
Banks don’t always need to disclose their liquidity rates to the general public, which can make it tough to know which banks are the most stable. In Belize, however, the legal rates of liquidity are one of the highest in the world, giving you peace of mind.
Banks in the United States are required by law to have liquidity rates of five percent. In Belize, every single bank is legally obligated to have liquidity rates of at least 24 percent which is roughly four times more. That’s a tremendous difference, and it means that banks in Belize are less likely to fail or experience a problematic run on cash. In fact, no bank has ever failed in Belize’s history.
3. Opportunities for International Investment
Banking in Belize can be the right choice for a number of people because there are so many different ways to invest their holdings. Sometimes, individuals prefer only to open an international bank account for easy access to currency for vacations.
At the other end of the spectrum, investors may wish to establish trusts or set up an International Business Company (IBC). It is also possible to invest in real estate, thanks to affordable property prices. Having a bank account in Belize can make it simpler to purchase property within the country, whether that property is for your personal use or as a long-term investment.
4. Tourism is on the Rise
A country doesn’t need a lot of tourism in order to offer excellent banking services. In Belize, however, tourism is rapidly on the rise. In many ways, that can be beneficial to those who are banking offshore or thinking about banking in Belize.
With tourism comes more opportunities for investment and greater opportunities for profit. If you have a vacation rental in Belize, for example, increased tourism provides you with the opportunity for more reservations or premium charge rates, thereby increasing your return while operating costs remain the same. More tourism also means infrastructure growth, which increases the long-term stability of Belize and its banking system.
5. Remote Access to Open Offshore Bank Account
Belize is conveniently located a short flight from major American cities like Charlotte, Dallas, and Miami. Believe it or not, you could even drive from North America all the way to Belize. While it is nice to have that option, it is even better to have the option of remotely opening your bank accounts.
As long as you have all the required documentation and funds needed to open up an offshore bank account, some banks in Belize allow you to create an account from your home country. Some also allow you to apply for an international debit card such as Caye’s Mastercard. These cards can be used just like your traditional bank cards, allowing you to pay for meals at restaurants, shop at department stores, book flights or withdraw cash from almost any ATM. You can even use these cards globally wherever Visa or MasterCard are usually accepted.
The ability to open your account and access funds remotely saves time and cuts costs while allowing you to take advantage of all the benefits of banking in Belize.
Banking in Belize is a popular choice for those interested in offshore banking for asset management and diversification. Award-winning Caye International Bank headquartered on Ambergris Caye island, Belize offers a wide range of these banking services.
Contact Caye today to find out how to open your offshore bank account in Belize.