Whether you’re a serial investor, high net worth individual (HNWI), or just someone who sees now as a great time to diversify your assets in the face of troubling times, you might be considering offshore banking. As the novel coronavirus, COVID-19, makes a global impact, we’re seeing the global economy take a huge downfall right now. It seems there isn’t a single market that isn’t affected by the coronavirus, and for investors, this means that staying resilient is as important as ever.
If you’re interested in moving your assets from one instrument or vehicle to another, you want to ensure that you are moving those assets to a secure place - often times, this place is going to be offshore.
Offshore is extremely safe and flexible. Offshore banking provides a wealth of opportunities if you are serious about diversifying your assets. For instance, offshore banking can provide various tax benefits, as well as links to other markets by way of multi-currency accounts.
Of course, there are plenty of offshore jurisdictions that you can choose from, but in this article, we’re going to discuss what we consider to be perhaps the best offshore jurisdiction to invest in during these uncertain times: Puerto Rico.
Why Puerto Rico?
Puerto Rico is a territory of the United States, and it is currently considered to be one of the best choices for offshore banking if you are concerned about protecting your privacy.
Since Puerto Rico is so closely located and tied in with the United States, they have done a wonderful job of making things easier for those who want to bank offshore there. The banks are extremely easy to work with, offering a number of options and online banking that investors enjoy. For example, offshore bank accounts in Puerto Rico are often coming with Visa and Mastercard bank cards now for convenience.
So, what are the benefits of banking in Puerto Rico?
1. No AEOI/CRS
So, what are the benefits of banking in Puerto Rico?
2. Online banking features
Another thing that makes Puerto Rico a great place to open an offshore bank account is the fact that they have moved their banking into the digital world. In fact, you can open an offshore bank account in Puerto Rico without ever setting foot on Puerto Rican soil. You can do everything online!
3. Low minimum balance requirement
When you open an offshore bank account in Puerto Rico, you can often open your account with as little as $500, and many times, there’s a $0 minimum balance required.
4. Accessing foreign investing opportunities
Another thing that makes offshore banking in Puerto Rico desirable is that Puerto Rico is an excellent link to international investing. Located between America and Latin America, Puerto Rico makes it easy for investors to work with various countries. In addition, Puerto Rico has added more than 18 International Financial Entities in the past two years.
Puerto Rican banks are typically protected from lawsuits, which is important to keep in mind when choosing an offshore banking jurisdiction.
5. Getting tax perks
Another great reason to choose Puerto Rico for your offshore jurisdiction. Taxes. Non-U.S. residents can enjoy a number of U.S. tax perks. For instance, there is a 0% tax rate on certain dividends, interest, and capital gains.
How to Open an Account in Puerto Rico
Before jumping in and banking/investing in Puerto Rico, it’s important to partner with an offshore financial management firm. Whether you’ve never used an offshore bank account or if you don’t want to be left alone to ensure that you are compliant with all the regulations, an offshore financial management firm can help. These firms can help investors navigate foreign and overseas stocks, which can be helpful if this is an area in which you want to invest.
In addition, a firm can help you invest in precious metals and other investments offshore. Plus, an offshore financial management firm can help you move your assets from stocks to precious metals. If you’d like to move your assets from precious metals back to stocks, a firm can help.
Our partner firm offers a number of benefits including multi-currency accounts, precious metals accounts, foreign currency exchange, brokerage, bank cards, mutual funds, and more.
Takeaway
Puerto Rico is definitely the place to be if you’re looking to invest securely in an offshore jurisdiction during uncertain times. The key to success, however, rests in partnering with an offshore financial management firm that can help you navigate through the proper channels and help you meet your overall goals when it comes to diversifying your assets and even investing in Puerto Rico and other markets.
Read also "Offshore Bank Account and Tax Reporting"
MAR
2020
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