I’ve opened more than 15 bank accounts across various countries over the past dozen years, and almost all of them have been more robust or advantageous than those in my home country. However, the process of opening an offshore bank account is quite different from what you might be used to.

The Process of Opening an Offshore Bank Account

One thing I can tell you is that opening a bank account in many countries is becoming increasingly expensive—requiring higher deposits—or more difficult, if not outright impossible. That’s why, if you’re considering offshore banking, the best time to open an account is now.

The process is fairly straightforward:

• You’ll need to complete some paperwork.
• Depending on the bank, you may need to visit a branch in person or apply remotely.

Some banks offer remote account opening, but I’ll explain later why you might want to avoid it.

Is Offshore Banking Legal?

One of the most common questions people ask is: Is offshore banking legal? The answer is “yes” in almost every country.

However, some countries, like the United States, require you to disclose foreign bank accounts and report the funds held in them. I strongly advise complying with these regulations. We work with tax attorneys and CPAs who specialize in international tax matters, and it’s crucial to ensure proper disclosure. Offshore banking isn’t about hiding money—it’s about diversification.

Benefits of Offshore Banking

Why open an offshore bank account? Here are some key advantages:

1. Diversification – Holding funds in different currencies or more stable banks reduces financial risk.
2. Stronger Banking Systems – If you look at the world’s top 50 strongest banks, very few are in the U.S. Many are in places like Canada, Australia, or Singapore. You can place your money in these safer banking environments.
3. Protection Against Bank Failures – When banks in the U.S. were collapsing, offshore accounts provided security for those with diversified holdings.
4. Higher Interest Rates – Some offshore banks offer better rates on savings.
5. Investment Opportunities – Offshore accounts can unlock access to global investment markets. For example, having a bank account in Dubai could simplify real estate investments in the Middle East.

Where and How to Open Offshore Bank Account

People often assume that opening an offshore account is as simple as walking into a bank with a driver’s license, like in the U.S. or Canada. In reality, it’s usually more complex, as banks in other countries may not have immediate access to all your financial history.

Types of Offshore Bank Accounts

There are different types of offshore bank accounts, and choosing the right one depends on your financial goals:

1. Retail Accounts – Basic accounts similar to those in your home country, where you can deposit cash and use a debit card.
2. Priority Accounts – Require higher minimum deposits (often six figures) but offer multi-currency holdings, investment opportunities, and personalized banking services.
3. Private Banking – Geared toward high-net-worth individuals, these banks manage your investments and offer discretionary accounts. However, they often push in-house financial products that may not always be the best option.

To decide which type suits you, ask yourself: What are my financial goals? If you’re just starting, a retail account may be the easiest entry point. If you’re looking for better investment options and diversification, priority banking might be ideal.

Where to Open an Offshore Account

Your choice of jurisdiction matters, as different countries have different requirements and advantages:

• Retail Banking for Low Deposits – If you just want to “dip a toe” into offshore banking, countries like Georgia, Azerbaijan, Ecuador, and Cambodia allow non-residents to open accounts with relatively low deposits. However, options are shrinking, as seen with Armenia, which recently stopped offering accounts to non-residents.
• Priority Banking – If you can meet higher deposit requirements, places like Singapore, the Bahamas, Portugal, and the Czech Republic offer strong banking services with access to investments.
• Private Banking for High-Net-Worth Individuals – Countries like Switzerland and Singapore cater to wealthier clients, but expect high deposit requirements, often starting at $500,000 to several million.

How Residency Can Help

Having residency or property ownership in a country can make it significantly easier to open an account. For example:

• In Dubai (UAE), you can open an account as a non-resident, but it’s easier with a residence permit.
• In Bahrain, if you own real estate, you are often required to have a bank account to manage rental income and property expenses.

Finding the Right Offshore Bank

If you’re simply looking to open an offshore account with a small deposit, options are becoming more limited. However, for those willing to invest more, priority banking offers a good balance of services, investment opportunities, and reasonable fees.

For me, priority banking—especially in financial hubs like Singapore—strikes the perfect middle ground between accessibility and premium services. Private banking, on the other hand, often comes with high fees and less appealing investment options, making it less attractive unless you have significant wealth to manage.

The Importance of Diversified Banking & Asset Protection

Uncovering “Unknown Unknowns” in Offshore Banking

One of the biggest risks in international banking and investing is not knowing what you don’t know. Many non-Americans, for example, are unaware that holding certain U.S. assets exposes them to U.S. estate tax, with only minimal exclusions.

We’ve helped clients save millions by restructuring their holdings. One case saved $2.5 million in taxes, costing just $155,000 in restructuring fees—a risk the client wasn’t even aware of before hiring us.

This highlights a common issue: private banks often claim to handle international tax and asset protection, but they frequently lack in-depth knowledge. Their advice can be bureaucratic, generic, or even incorrect when it comes to complex issues like U.S. tax laws or cross-border investing.

Many private banks, especially in Liechtenstein and Switzerland, oversell their expertise. Their service often lacks flexibility, and they tend to prioritize ultra-high-net-worth clients ($80M+ portfolios) over those with “only” a few million.

Instead of trying to do everything with one private bank, it’s smarter to structure your banking portfolio based on your needs:

1. Retail Banking – Ideal for small deposits, simple transactions, and emergency fund diversification.
2. Priority Banking – Good for managing self-directed investments with better service and lower fees.
3. Private Banking – Designed for large portfolios but comes with higher fees and less control.

Building a Diversified Global Banking Portfolio

Rather than relying on one institution, a well-structured portfolio might include:

• A Singaporean bank for buying Singapore dollars to fund an Asian brokerage account.
• A UAE bank for investments in the Middle East and Africa.
• A Swiss or Portuguese bank for European investments.
• A U.S. account for handling transactions related to Latin America (though U.S. banks are often very domestically focused).
• Retail accounts in places where you own property, such as Montenegro, Serbia, or Armenia, providing local deposit protection and financial flexibility.

Many countries offer residency-based banking, meaning that obtaining residency through real estate or business investments can grant access to better financial services.

By maintaining a mix of retail, priority, and private banking accounts across multiple jurisdictions, you gain:

• Asset protection from geopolitical or banking crises.
• Greater investment flexibility across different regions.
• More control over currency diversification to hedge against risk.

A well-structured global banking strategy ensures that if one country’s financial system collapses, you’re not trapped. Diversification is not just about returns—it’s about security, it’s part of Better Money Habits