Financial Crisis: Saving Money Offshore

It’s the end of the year already, we all think about the Season’s Holidays. But after we are back to work, we still observe that times of financial difficulties are not over yet. Businesses go bankrupt, people loose jobs, the crisis keeps developing. Experts say it might be the worst world crisis ever seen, they do not expect upturn in at least two years. Meanwhile prudent people would do all possible to safe what they earned so far, rather than strive for economic achievements.

The current world financial crisis having started with the United States and spread to other countries will continue developing in 2009 to probably involve every country in the world. It will touch everybody to this or that extent.

However, the financial crisis is not the worst thing by itself. Stronger economies have chances to get recovered quite soon, in a year or so. But countries having the world financial crisis overlapping their own national economic difficulties already existed years before that, might have the worst times ahead.

Insolvency, bankruptcies in the countries’ key industries, unemployment and permanent drop in the living standards are the reasons why the governments may undertake emergency stabilization measures, such as nationalization of private property, imposition of taxes on wealth, introduction of foreign exchange control regime and so on. Very unpopular measures, but there are historic precedents of them, including in the USA and in many other first world countries, so they are very real ones.

Each person might have its own set of reasons for keeping money offshore, but obviously no one would like to get all his funds locked in a country, or even seized, one day.

There are more than 70 offshore jurisdictions, with low or no tax, no bureaucracy, no foreign exchange control, having stable political regime. Most of them broadly specialize in financial, corporate and administrative services promoting them as the key industries, which is another guarantee of stability and the reason to go for an offshore place rather than your home jurisdiction. Financial problems touch every country but to a different extent. There are “safety islands” at your choice.

Incorporate your company, corporation, LLC or trust offshore, open a bank account and deposit your funds with an offshore bank. You can transfer your title to different assets to the company. This will technically separate your money from yourself, to keep them in a safer place. Besides that, you will get access to a comprehensive choice of foreign currencies and other saving instruments (precious metals etc.) to create your own savings portfolio fighting with inflation.

Due to liberal legislation and well-established procedures, registration agents and banks in most low-tax jurisdictions do not require your personal presence. You can easily set-up a company and open a bank account staying at home, with no need to travel. You can operate your funds from your home computer using secure internet-banking systems. All major debit and credit cards are available to cash the money through ATMs in nearly any country in the world.

These steps are easy and affordable to many. Depending on the choice of jurisdiction where to set-up a company and open a bank account, the total first year expenses may limit with mere US$ 900. And your timely action is of importance to make these measures efficient.