Open an offshore bank account in Singapore

Why consider offshore banking in Singapore?

An offshore bank is typically a bank located outside of the depositor’s home country. Offshore bank accounts are generally located in a low-tax jurisdiction that provides privacy, financial and legal advantages to the depositor.

Most investors who create offshore bank accounts do so for privacy and reduced regulation and lower taxes or to protect their assets from lawsuits or local political or financial instability in their home country.

Important considerations of offshore banking in Singapore

Singapore is one of the most desirable private banking jurisdictions in the world. Singapore’s sophisticated and stable business environment and the fact that business is conducted in English makes offshore banking in Singapore easier than many other places.

The biggest hurdle to opening an offshore bank account in Singapore has been the requirement to be physically in Singapore or be a current customer of the bank to open an offshore account there. Today opening an offshore account in Singapore is less and less complicated.

The easiest way for a non-Singapore resident to open an offshore bank account in Singapore is to use one of the Singapore banks that have offices in their home country. If you are from the United States, for example, you might consider opening your offshore bank account through Citibank. Citibank has been in the international banking business since 1897 and today more than half of Citibank’s branches are outside the United States. Citibank offers excellent and reliable online banking services, multi-currency accounts and 24/7 help centers. The drawback to using any bank based in the US or Europe is the loss of privacy sought by many considering foreign bank accounts. Citibank or any other US or European bank will likely require the investor to provide a social security number or other national identification number and to sign a waiver of Singapore’s privacy laws.

If privacy is not a primary concern, you can open an offshore account in Singapore through one of the US or European banks with offices in Singapore simply by contacting a local branch near you and having the local bank certify the necessary documents to the Singapore office.

To take advantage of Singapore’s strong privacy protections, it’s best to establish your offshore bank account with one of the local or Asian banks. To do this, you may need to visit Singapore or, if your investment is significant, you can arrange for the bank to send staff to your home country to open your account or you can create a legal representative for your account who can open and manage your account. an account in your name.

US citizens considering opening an account abroad should be aware of and seek professional advice on the impact of the recently enacted HIRE Act. The HIRE Act, which goes into effect in 2012, requires all Foreign Financial Institutions (FFs) to provide information on US account holders and, in many cases, withhold 30% of the US-generated income of the US account holder. the account, including dividends, interest, wages, rents, annuities, or other U.S. sources. fixed or determinable annual or periodic earnings, profits, or income and 30% of gross proceeds from the sale of property that could earn U.S. source interest or dividends, regardless of cost basis.