Puerto Rico Offshore Bank Account

Overview: Puerto Rico Offshore Banking

Puerto Rico has become one of the top offshore banking and financial centres in the Caribbean. Puerto Rico is officially a territory of the United States, though there are several degrees of separation from which the island enjoys some advantages not found on the mainland.

US capital has flooded into the island in the last few years to open accounts and take advantage of some of the government's development initiatives and investment programs. They have largely been a success attracting a huge influx of capital and foreign investment through Puerto Rico's Act 20 and Act 22 Bills which were made laws to create incentives to foreign capital to stimulate the local economy. 

The two Puerto Rician Tax incentive bills and high return investment opportunities to foreign capital in specific business and service industries as well as tax exemptions for qualifying individuals. The island benefits are many, while being able to take advantage from being in proximity to the US it remains at arm's length in many ways offering some exciting opportunities not found onshore. 

Why It Is Worth Getting

1. Financial Privacy
2. Tax Advantages
3. Location and Language
4. Strong Economy and Infrastructure
5. Access to Top Investment Opportunities
6. Wide Variety of Service Offerings
7. Convenience
8. Low Minimum Balance and Deposit Requirements
9. Access to Multi-Currency Accounts
10. Asset Protection and Safety

1. Financial Privacy

Puerto Rico bank accounts offer high levels of confidentiality for their account holders. This is primarily because Puerto Rico has not signed any Automatic Exchange of Information agreements and is not subject to the Common Reporting Standard (CRS), which is a standard of reporting adopted by over 100 countries to avoid worldwide tax evasion, but results in increased disclosure of private banking information. 

With a Puerto Rico offshore bank account, your identity and financial information will not be disclosed to banks in other countries. Puerto Rico private banks take seriously the confidentiality of their clients and are extremely reluctant to disclose any information about their account holders, except in criminal investigations. Having a Puerto Rico offshore account will ensure that your funds are not subjected to undue scrutiny. This also results in greater levels of personal asset protection. 

2. Tax Advantages

As an offshore jurisdiction, Puerto Rico offers tax advantages. The best way to access these benefits is by setting up a business in Puerto Rico, in which case you will only be subjected to a 4% corporate tax rate for qualifying industries (up to a maximum of 7%). Puerto Rico have now made it possible to do this with only a single employee (who can also be the owner), making it easy for any individual to go this route. 

3. Location and Language

Puerto Rico is ideally located between North and South America. It lies only 1000 miles off the coast of Miami, Florida. This makes it easily accessible for US residents. It also acts as a business link between the US and Latin America, providing access to investment and trade opportunities in both areas.

English is one of the official languages in Puerto Rico, which removes potential language barriers for offshore account holders. 

4. Strong Economy and Infrastructure

Puerto Rico is characterised by its strong economy and high-income levels. It also has high-quality infrastructure systems including top health care, schools, transportation, and public services.

5. Access to Top Investment Opportunities

Puerto Rico private offshore bank accounts provide access to top investment opportunities with high yields. As an offshore account holder, you will have access to a variety of trade and investment vehicles, such as mutual funds, managed accounts, forex trading, equities, and precious metal investments. 

Similarly, the government offers several attractive "Opportunity Zones" which are sectors of the economy which offer low restrictions, regulations and tax benefits. As of this writing, most of the island is considered opportunity zones.

6. Wide Variety of Service Offerings

Private offshore banks in Puerto Rico offer their clients a host of quality services including sophisticated banking services such as multi-currency accounts, online banking, bank cards, and forex trading. 

7. Convenience

Puerto Rico banks have minimal requirements and can also be opened remotely in as little as two weeks. Due to the introduction of FATCA in the United States, many offshore banks are closing their doors on US citizens, due to the costs and efforts involved in maintaining FATCA compliance. However, because Puerto Rico is an associated US state, this problem is non-existent. This makes it especially attractive for US citizens who are looking for an offshore account in an advantageous banking jurisdiction without needing to jump through numerous hoops to get one. 

8. Low Minimum Balance and Deposit Requirements

The average minimum deposit needed for opening a Puerto Rico private offshore bank account is USD 500. Most Puerto Rico banks do not stipulate that you need to maintain a minimum balance, meaning in most cases the initial deposit can be withdrawn without causing any problems. 

9. Access to Multi-Currency Accounts

Puerto Rico offshore banks enable their account holders to open multi-currency accounts and hold various different currencies simultaneously. This allows you to effectively hedge your currency risks and take advantage of Forex trading opportunities. 

10. Asset Protection and Safety

Holding assets outside of where you reside gives you a layer of protection and security that can not be found when you keep all your eggs in one basket. Having a bank in a foreign jurisdiction provides a second legal system to protect your account, increases the level of confidentiality, and provides a secure investment through account and currency diversification. 

How to Open an Offshore Bank Account

Requirements

Prospective account holders need to meet the Know Your Customer (KYC) and Anti Money Laundering (AML) requirements, which include providing the following documents and information:

• Identity proof in the form of a certified passport copy and certified personal identity card.
• Proof of residence which shows that you are a legal resident of a country other than Puerto Rico in the case of applying for an offshore account.
• Some banks may request a bank reference letter or bank certificate not older than 3 months

If all the requirements are met and the bank is satisfied to accept you as an account holder, the entire process can be completed in under two weeks. In most situations, you will not be required to visit the banks personally. The entire process can be done virtually through our banking introductions.  

Who Can Benefit?

Puerto Rico is an ideal jurisdiction for anyone who is looking to take advantage of the many benefits it offers, such as increased tax efficiency, greater financial privacy, and asset protection.

Puerto Rico offers an ideal offshore environment to set up an offshore bank account. While places such as Singapore and Hong Kong are nearly impossible to open an account these days, Puerto Rico is a viable alternative. The question is, for you how long will it last.

For more information on Puerto Rico:

• Puerto Rico Company Formation

Offshore Bank Account Update: If you are looking for privacy and asset protection we recommend offshore business accounts. Offshore personal accounts do not offer the privacy and asset protection you are looking for. We suggest using offshore corporate accounts or a private Swiss account. Get in touch for more info.