- I'm an expat with considerable onshore savings and a salary payable anywhere in the world. Should I use an offshore bank, and if so, why?

- Onshore banking is subject to the tax and foreign exchange rules of the country in which the account is held, and depending on the size of your savings, and the tax regime of your onshore jurisdiction, the price you pay is likely to be fairly high if your savings are 'considerable'. Therefore, if you are interested in reducing your tax exposure, and in relatively higher confidentiality levels, it would make sense to examine the possibilities available to you offshore.

It is worth noting, however, that some countries, for example the USA, tax world-wide income whatever your expatriation status, so you will need to ascertain the position held by the country from which you are expatriating/have expatriated before making a decision.

- If I decide to use an offshore bank, how do I know which jurisdiction is best for me?

- To a great extent, this depends on your personal and business circumstances (e.g. residence, personal wealth, lifestyle, future tax planning structures, investments, relocation plans, etc). You could pay an advisor to do your research for you, but the chances of finding someone onshore with the relevant skills and a broad enough knowledge base in offshore matters are slim, and an offshore advisor might be less than objective about the jurisdiction in which he/she is based. It seems, then, that the best option is to do at least the initial research into possible jurisdictions for yourself (perhaps with the help of the Lowtax jurisdictions guide!). There are, however, some general points to be considered:

• Is the jurisdiction politically stable?
• What are the specific laws and regulations regarding banking confidentiality? (Has it set up treaties with other countries/regulatory groups, etc?)
• Is there an adequate communications system?
• Is there exchange control?
• What banking facilities are available?
• What are the statutory compliance requirements?

Specific advice for nationals of the following countries:

Information given is specific to the countries of origin concerned but often applies more generally.

- How do I open an offshore bank account?

- The requirements and length of time it takes to set up an offshore account are dependent on the amount you are proposing to invest, and the size of the offshore institution with which you are dealing (opening an account with a major bank may take 4-8 weeks, as it can take this long to check documentation and confirm references).

Although the information/documentation that you are required to give varies greatly according to the institution and type of account, some of the more common requests are for:

• Signature Card
• Notarized specimen signatures
• Notarized copy of passport or drivers license (i.e. some form of photo ID)
• Bank reference
• Utility bill/s showing residential address.

This is by no means an exhaustive list, and many offshore institutions do not require all of these documents, or require them in different combinations, but this is normally well documented in their brochures.

- How secure is my money? Isn't it more risky to invest/bank offshore?

- Not if you are sensible, no. It is always better to regard offers and institutions which seem ‘too good to be true' with suspicion, as they generally are! You should begin your research with well established institutions to give you a frame of reference regarding industry standards, and regard with skepticism interest rates or benefits which seem ‘exceptional'. Also, check that the reputation of the bank that you are planning to deal with is good (word of mouth, media sources, etc)

Finally, bear in mind that whilst taking advantage of existing legislation to legitimately minimize your tax burden with a reputable service provider presents very little risk, unreported offshore activity for the purposes of tax evasion is risky.

- What sort of return can I expect on my savings?

- The rate of return that you can expect on your savings depends on several factors. The interest which you will accrue depends on the amount invested, the length of time for which it is invested, and the individual institution and jurisdiction. However, it is worth noting that higher rates of interest are a benefit which does not really come into play in the general field of offshore banking; these can be expected in a private banking relationship involving a very substantial investment.

More of an issue is the currency that you decide to keep your assets in, and the relative strength or weakness of this at any given time. You may decide that it is easier to maintain your savings/income in whichever currency your liabilities are paid, or you may decide to examine the status of the various currencies, and proceed from there. This does not have to be a permanent decision, as more and more, offshore jurisdictions are offering foreign exchange services to their clients.

- How do I deposit and get access to my money?

- Depending on your needs, there are many ways of obtaining access to your money. This can be done by post, courier, fax, telephone, over the internet (If sufficient security measures such as encryption capabilities and protection against account losses due to deliberate interference are in place) or bank wire transfer. If you have transferred all the capital you want offshore, and are not still in the process of transferring funds, by far the most convenient way to access your savings is by using an offshore credit card.

Although offshore credit cards have been used legitimately for many years, onshore tax authorities - particularly in the United States - have in recent years subjected this payment form to some scrutiny, in the hopes of flushing out those using the cards to evade their tax liabilities. Initiatives such as the US Offshore Voluntary Compliance Initiative have had some success in this area.

- How does an offshore credit card work?

- In a great many cases, an offshore card can usually be applied for at the same time that the account is opened. The majority can be used both to withdraw money from ATM machines worldwide and to pay merchants, in much the same way as an onshore card.

Where onshore and offshore cards differ, however, is that the latter are, for the most part ‘secured', which means that you are required to provide a security deposit with your application, and you do not have to undergo a credit check. The deposit required depends upon the desired credit line, but as a general rule, usually ranges from between 125% to 200% of the credit line requested. Many cards offer additional benefits such as insurance, and card/cash replacement.

- What is the difference between a secured and an unsecured offshore credit card?

- Usually a significant amount of your hard-earned money down the drain! The majority of the offers you will find, promising you an ‘anonymous, unsecured and 100% approved' credit card fall firmly into the too good to be true camp! Drawn by the promise of complete anonymity, the ‘low' application fee, and the absence of security deposit, the unwary investor eagerly remits his initial administration fee, and in the majority of cases, this is the last he hears of it. Very rarely do reputable institutions offer unsecured credit cards, and then only to well known clients with substantial assets.

As the saying goes: ‘You get what you pay for' (or rather, you don't get what you don't pay for!) Unless you fall into the above category, you would be wise to ignore the pitches of unsecured offshore credit card promoters, and resign yourself to the idea of providing a security deposit in exchange for a genuine and legitimate offshore card.

- Is an offshore credit card expensive?

- There are additional administrative and transactional costs to bear in mind, and charges for services such as use of ATM machines can be quite high. The rate of return on your security deposit will also be significantly lower than could be expected for other types of offshore investment. For this reason, offshore credit cards may not be right for everyone, and it is a decision which needs to be made based on the size of your investment, and personal situation.

- What is an offshore debit card?

- An offshore debit card provides you with the option of accessing savings held in an offshore account in much the same way as an onshore card would. A note of caution, however: obviously, an offshore debit card requires you to transfer funds to your chosen jurisdiction for ‘safekeeping'. Choose the location carefully, to avoid communication/logistical difficulties later on.