Offshore accounts are perfect for expats who require a flexibility in their current account. It is the most convenient way to manage their financial obligations in different currencies.
There are several disadvantages to keeping the one bank account based in your home nation, like the charges levied for withdrawals and heavy transaction fees. While keeping your existing current account is fine in order to deal with direct debits and standing orders in your home nation, it is also prudent to open a new bank account in your new place of residence. However, this is not always that simple and you are then subject to dealing with people who may not be fluent in your native language. It may also lead to further complications if you are receiving and bring in money from abroad , thus exposing it to exchange rate fluctuations.
The shrewdest thing to do is to open an Offshore Current Account in a tax haven. One of the key advantages is that it suits the transient lifestyle of an expat since you do not have to keep opening new accounts every time you move to a different country. It also offers increased security and confidentiality in money transfers and allows you to receive money in multiple currencies.
However most offshore accounts come with certain requirements, such as a minimum annual income and the condition that your income is paid directly into this account.
For further information and independent advice, please contact one of our Whitmore advisors.