A nonresident bank account is in other words called an offshore bank account. Simply put, a nonresident bank account is the kind of bank account opened in a jurisdiction other than your own.
A very simple operation
You simply open a bank account in a foreign country that you do not reside in. Opening a nonresident bank is not as difficult or cumbersome as many people have been made to believe.
Though requirements and processes might differ from one jurisdiction to the other, the basic ones are similar across the board. You essentially need to provide a notarized copy of passport, personal reference characters, proof of physical address, bank reference as well as statements, funds to deposit.
In most cases, the minimum amount of money you can deposit in a nonresident bank account is $10 000 though there are certain offshore banks that require an initial deposit of up to $100 000.
Advantages of non-resident bank account
If you are at a stage where you are in a dilemma as to whether to open a non-resident bank account or not, the following advantages should be able to help you easily make up your mind.
Flexible or currency account options
Basically, you get to open a nonresident saving account, a nonresident checking account which can operate in 12 to 15 currencies. What this essentially means is that your account can be in Euros, sterling pounds, dollars just to name but a few.
Nonresident bank accounts enjoy little or no tax on income from proceeds got out from business activities out of the country the account is in. as such, it’s lucrative if you are seeking to avoid paying high taxes.
High interest rates
Unlike domestic banks where interest rates are very low, non-resident bank accounts attract high interest rates which means your account savings grows in leaps and bounds. Add to that the tax is very little and you get to understand why nonresident bank accounts have become very popular!