If you will be working abroad for some period of time, it is critical that you open an offshore banking account. Here are some tips that will help your banking activities go smoothly while you are out of the country.
Seek a Bank that Offers Different Currencies
If you will be paid in dollars, find out if you can locate a bank that offers multi-currency arrangements. If you can locate one, you will be able to preserve your pay without having to convert it to the local currency. That way, you can convert your money when it is beneficial for you to do so .
Consider an English-Speaking Bank
Make every attempt to find a bank that accommodates English speakers. You may be able to find a bank that caters to expatriates, or you might find a bank that offers an all-hours English phone help line. Your coworkers or manager should be able to offer suggestions.
Check for Depositor Compensation
Ensure that any bank you choose has some kind of compensation available for depositors if something should happen to the bank. This kind of protection is vital, particularly if you aren't quite sure of the stability of the bank or the jurisdiction where you are opening an account.
Remember to File Your Taxes
While you are living overseas, you may be consumed with your life there and not think about your American tax return. However, it is important to remember to file a tax return. More especially, it's important to remember to declare your foreign banking account. You will also need to file the Treasury Department Form, TD F 90-22.1 Report of Foreign Bank and Financial Accounts (FBAR), if your offshore holdings exceed more than $10,000. Failure to do this can result in high fines and possible jail time, so remembering to do this is critical.
Consider Estate Planning
If something should happen to you while you're overseas working and you have heirs or beneficiaries that you want to take over your foreign banking account, you need to set up a trust for that purpose. If you have been planning your estate while in the foreign country, remember to update your documents to include your offshore banking account.
Now that you know what you have to keep in mind when banking outside of the country, use the tips in this article to help you do everything properly. You might want to talk to your local banker or financial adviser for more suggestions about how to proceed when you need an offshore bank account.