Cardonio Bounty Campaign: What is an ICO Bounty Program and How to Incorporate it into an ICO Campaign?

The crypto-world is becoming bigger and interesting as we speak. The industry experts are ever restless, launching new alt-coins almost every day. But this is not the only thing that is being done in this industry. Once you start following the news, you will see a lot of new terms and activities that quite frankly don’t make any sense to some people as well. One of these terms is ICO bounty program. You must be wondering, Wait, what is that?

If you had a chance to get familiar with some unorthodox marketing techniques in the past, then there is a good chance you can guess what ICO bounty is all about. And no, it doesn’t involve anyone becoming a pirate at any given point in time. Let’s see what ICO bounties are, and what role they play in an ICO campaign.

What is an ICO Bounty?

The Initial Coin Offering is an effort made by cryptocurrency startups to raise money for their project. Everything starts with the whitepaper, which translates into a business plan. The whitepaper usually contains:

• A detailed explanation of what the project is about.
• The reason why the project was started, and whether there’s a real need in the world for it.
• A financial plan, where the key point is how much money the startup needs to get things going.
• The precise number of newly created crypto tokens that the project creators will keep for themselves.
• Information on whether the startup will accept only cryptocurrencies or regular cash as well.
• The end date for the ICO campaign.

During the ICO campaign, a cryptocurrency startup’s main goal is to raise as much money as they can. On the other hand, investors are motivated to invest in it by the quality of the whitepaper, especially by the part where the real need for the cryptocurrency is explained, and the hope that the cryptocurrency’s price will spike after the plan launches.

The more people learn about the ICO, the better, simply because the number of potential investors rises. This is where the ICO bounty comes in. Some startups don’t have the money to hire PR and marketing firms to help them raise money. An ICO bounty is an efficient and cheap way to spread the word about the ICO by outsourcing marketing to regular people.

An ICO bounty can be something very simple, such as logo creation, a mention in the comments of a popular YouTube video, a full YouTube video, forum posts, content creation, and so on. Upon completing it, the startup rewards the bounty hunters with the brand new cryptocurrency.

What is an ICO Bounty Program?

The ICO bounty program is a specific marketing effort a startup decides to implement. The more detailed the ICO bounty program is, the greater the chances for the startup to reach success. ICO bounty programs help startups in two distinctive ways.

First, they help them spread the word of their ICO, and, secondly, bounty programs can help startups get the bugs out of their code by using high-end programmers which they cannot afford to have on their payroll.

An ICO bounty program may involve all sorts of activities ranging from signature and social media campaigns, to content creation and translation campaigns as well. Companies like ICO Bounty incorporates and offers multiple types of ICO bounty programs, both pre-ICO and post-ICO ones. All of this isn’t done in an erratic fashion. Over the years startups in the crypto world have learned a lot. Let’s see what types of ICO bounty programs there are.

The Framework and the Types

Before you decide which ICO bounty will work best for your startup, you have to get familiar with the ICO bounty framework as a whole.

The term pre-ICO bounty programs, as the name implies, refers to all the bounty efforts made before the ICO launch. Their primary purpose is to create the buzz and get your marketing ball rolling. The ultimate goal is to significantly increase awareness and get investors interested in your startup and upcoming ICO.

Pre-ICO bounty programs include the following activities:

• Social media campaigns – these bounties are designed to use the followers of the participants’ social media accounts to raise awareness of the ICO. It is important to distribute rewards depending on the engagement levels generated by the “bounty hunters”. The most popular social media platforms used in this instance are Twitter, Facebook, and YouTube.
• Content creation – many of the people interested in cryptocurrencies have blogs with large audiences. These bounties are designed to motivate them to write articles about your ICO on their popular blogs.
• Signature bounties – these are the most popular ones, as they are open to all the people at the Bitcointalk forum. Startups usually restrict these bounties only for people who have a Jr. Member rank or above on this forum.
• Post-ICO bounty programs are launched after the money for the ICO launch has been raised, to collect the feedback from the community so that improvements can be made. But, spreading the word to as many people as possible still remains the underlying goal of this effort. The most popular bounties for the post-ICO stage go as follows:
• Translation – documents like the whitepaper, the official cryptocurrency website, and the Bitcointalk ANN thread are translated into several world languages.
• Bug Hunting and Reporting – every cryptocurrency platform and software has bugs, especially when it is young. Bug reporting bounties are designed to motivate people to report the bugs as soon as they discover them.

Costs and Benefits

All the information so far clearly implies that the benefits of ICO bounty programs are huge. They offer unique opportunities for startups on a limited budget to spread the word about their ICO, get more people interested in investing in it, and make improvements to the platform after the ICO goes live.

When it comes to the costs, they are next to none. Some of the blockchain startups do hire bounty campaign managers, which significantly increases the costs of running a bounty campaign.

You can also consider getting listed on websites frequently visited by ICO bounty hunters to engage as many of them as possible. In any case, all the costs associated with these efforts are significantly lower than the costs of hiring a marketing or PR firm.

Famous ICO Bounty Programs

One of the most famous ICO bounty programs was launched by Rentberry. The idea was quite genius – they used Blockchain technology and smart contracts to enable people to enjoy an easier rental process, and their ICO bounty program is what made it possible for the project to start.

Another one is VRT World, a startup devoted to developing a decentralized global platform for all VR enthusiasts in the world.

People can take part in all sorts of VR activities and get exclusive access to the cutting-edge VR technologies on this platform. Their bounty fund is around 2% of all sold VR tokens. The majority of the bounty fund (30%) is reserved for the signature and avatar campaign bounty.

BitNautic also leveraged ICO bounty programs to incentivize the people to invest in their decentralized shipping and cargo platform. Around 5% of their total coin supply is reserved for bounty campaigns. More than half of their bounty budget is reserved for mainstream media, social media, and signature bounties.

Hopefully, the term ICO bounty is closer to you than before. As you can see the ICO bounties have a lot of marketing potential for startups on a limited budget. You can incorporate them into pre and post-ICO efforts to maximize their effectiveness.

Source: What is an ICO Bounty Program and How to Incorporate it into an ICO Campaign?

Bowman Offshore Bank Transfers: 7 Emerging Economies That Could Make You Rich

 

Wealth through value creation. Opportunity from solving problems. That is what business and entrepreneurship is about, and right now we live in the best time in the history of man to start a business. However, the opportunity to start a business is not in the old world – Europe, the US, The West.

The west is broken, the examples are too numerous to list, and the writing is on the wall. Plenty of other intelligent emerging entrepreneurs and investors are all saying the same thing: the party is over in the west. If you want to get rich: go east young man. Guys like Jim Rogers and Marc Faber, and the infamous Simon Black (who, for the record, is a real person – an intelligent and authentic international investor, but orders very girly drinks at the bar…)

In case you aren’t convinced…

Writing. On. Wall.

You don’t have to go down with the sinking ship. You have the ability and the freedom to change your location, pioneer into a new, fresh economy. With a bit of planning you can plant a flag in an emerging economy. Here are 7 that should be on your radar.

Thailand

Thailand is South East Asia for tourists. It is unlikely you will catch a glimpse of the Real Thailand during your first, second, or even third trip. Indeed, many places are like this, but Thailand has an outer shell that caters specifically to tourists. What I’m driving at is that when you go to a place like Phuket, or Krabi – you can have a good time, but there isn’t a good business to start there, you probably will meet a bunch of bogan aussie tourists, and then return home.

Overall you just won’t get to experience the REAL Thailand.

Unlike the other places on this list, Thailand is a place where people go mostly to vacation, not in search of opportunity. There is plenty of business opportunity in Thailand, you just need to know where to look, and you absolutely have to know the right people. Thai laws surrounding business are complicated and restrictive to foreign investment for the most part.

Company Law in Thailand | Amity Law

However, the laws have subtle details that allow attuned and well-connected businessmen to succeed. For instance foreigners are restricted to 49% ownership of companies – BUT there is a provision in the law which allows for Americans to own a different type of company, and own %100 of a business (with other restrictions, such as amount of shareholders and restricted business types) through a provision in the Amity treaty – sometimes called an “Amity Company” for short. However, you can’t own land with this company, and in almost cases you will not be allowed to own land in a company where you are a majority shareholder unless you have specific permission from the Board of Investment (BOI). Navigating business law in a foreign country is not for the meek, but it is extremely important to set up your business with a proper foundation of incorporation.

Myanmar

Burma is a country that is exploding with opportunity right now. Strategically situated between China and India, Myanmar finally opened up last spring to a wave of foreign investment. I know a person who made $50,000 his first week in the country, he hadn’t even incorporated yet and people were literally throwing cash at him for the services he could provide (which, by the way, he had never done before in his life before he set foot in the country).

Myanmar will undergo extreme growth over the next few decades as it catches up with the rest of SE Asia. Popular plays include serviced hotels and offices, legal services, tax services, any type of service will be in high demand. The entire value chain is up for grabs, and almost every private equity investor I meet is doing something in Burma, or currently searching for investment opportunities there. If you want to see how to set up a company in Burma, see this article, or leave a message with Jessica.

Mongolia

Bring your jacket, its freaking cold here, but there is tons of opportunity in Mongolia. The country is growing at over 15% per year. That is insane growth, but its being fueled by a commodity boom. Time will tell if the country can also shift resources to other sectors. I quite like this emerging markets interview about the country and entrepreneurs who have gone there to set up shop.

In many emerging economies, it takes a leap of faith to leave the comfort of home in search of something better. You have to be willing to live like no one else is willing now, so you can live like no one else can, later.

Africa

Everyone I talk to that has cash to spend on Emerging markets is going, has been, or is considering Africa – but they aren’t sure on the timing. With 60% of the world’s arable land, it’s an obvious choice. You have to be careful about what country you go into, and I highly recommend that you find a local partner on the ground. This is important in any of these locations, but Africa in particular due to language barriers in many countries. I met some entrepreneurs the other day who are getting funding from the Middle East to build secure car parks in strategic locations in Ethiopia.

Paraguay

This is a sleeper pick. You can get permanent residency in Paraguay rather easily, and even citizenship, and the country has a large amount of cheap and fertile farmland. Great place for many different types of flags. Less expensive than Ecuador or Uruguay due in part to its landlocked location, Paraguay is somewhat undeveloped – which places it in a great place for growth over the coming years.

Particularly when food shortages in other countries in South America, Paraguay could see its exports rise, and farmland appreciate in value.

Sri Lanka

If Paraguay was a sleeper pick, this is a more obvious choice. Coming off a recent civil war which decimated the country’s economy for decades, Sri Lanka has a need for basic services. For instance, only 10% of the people in this country own a smart phone. Huge opportunity in Sri Lanka in almost every sector. Very similar to Myanmar in that respect, except because Sri Lanka is not strategically located between other emerging markets, most businesses would likely be a play on the local market IN Sri Lanka. Due to the poor population, you would be wise to pick a basic need first and then go up the value chain. However it is clear that Sri Lanka needs a lot of help, and those who are able to solve problems in this country will be rewarded with ample compensation.

Philippines

You could easily miss this country, or visit for a short trip and immediately dismiss it outright. However, the Philippines are where a surprising amount of stuff goes down. There is opportunity in many different sectors, and it’s not difficult to penetrate into the inner circle of key players who run the country with a few connections and a little bit of money. You’ll find scuba guys on vacation, expats, and the special type of entrepreneur building a business in an emerging economy leveraging currency arbitrage.

These guys have been around the block a few times and understand that there is hidden opportunity in the Philippines that you might not catch at first glance. For starters, in terms of value, Pinoy are perhaps the very best workers in the entire world. You won’t find a first rate python programmer or slick designer – but for basic human labor, there is a virtually unlimited supply. The most popular businesses are call centers, and outsourcing centers. Dollars go very, very far when converted into PHP.

Bowman Offshore Bank Transfers: Start an Offshore Company

How an offshore company can lower your taxes 

Is the price tag on this year’s tax return still stinging? Are you tired of a high tax rate eating away at your hard-earned business and investment income? 

Bankrupt governments are waging war on success. The “lands of opportunity” have rolled up the welcome mats for business. 

So, what are you paying? Is 35%? 40%? 50% of your income going to taxes? That’s an awful lot of your money going to greedy politicians who clearly don’t value your success. But do they have a point? After all, they’re letting you create jobs and build wealth in their country. Right… 

If you’re tired of paying so much for the “privilege” of running a business in the west, and you want to reduce taxes and protect your assets, then it’s time you explore your options with offshore companies. 

Lucky for you, you’re in the right place. 

The story behind offshore companies 

Setting up an offshore company is a legal, effective way to protect your income from any greedy mouths (like that of whatever western government you call home). 

Apple, Google, Microsoft, Starbucks–These businesses use offshore corporations to save a lot of money and grow their businesses on their own terms. Saving money with low tax rates means more money to reinvest in their companies 

And your company doesn’t have to make billions of dollars in order for you to apply the same principles to your business and get the same low tax rates. There are legitimate strategies that international business owners and investors can use to reduce taxes and grow their business. 

The most important part of these strategies is they’re 100% legal. You just need the right advice (and a little bit of money). 

The right advice for your offshore business 

If you’ve found your way here, then you’ve probably already tried Googling “offshore company.” And you’ve probably encountered blogs and articles with conflicting information. 

“You need an X offshore corporation in Y part of the world.” “No, you need a Y offshore company in X part of the world!” 

This information is likely written by people still living in the USA, still paying high taxes (you know, the same high taxes you’re trying to get out from under). 

This bad advice will not show you the legal path to low tax rates. 

And there’s another red flag to watch out for from these “experts in theory”–there isn’t a single approach that will work for every business. You need to get advice from someone who understands the global tax market, who understands your business, and who understands your goals behind starting an offshore company. 

Each type of business has specific needs, and these needs are best served by personalized solutions. Many of the offshore company “service providers” out there are either ill-informed or outright frauds. And if you don’t know what to look for, it’s easy to get caught in their appealing, misleading pitch. 

What makes my advice different from the endless stream of “armchair expat” blogs out there? 

I’ve personally taken my tax rate from 43% to single-digit numbers with the help of the global tax market. And I’ve helped many others reduce taxes for their business (and continue to do so through my exclusive coaching program). 

Years ago, I felt trapped underneath a hefty tax bill while trying to run my first successful company. Unlike most business owners, I decided to do something about it. Now I travel the world, paying single-digit taxes and helping others build this lifestyle for themselves. 

Think about it–every day that goes by where you sit in the US, or Canada, or Australia, reading a blog about starting an offshore company, is another day you lose money to high tax rates. 

How does starting an offshore business really work? 

The “why” behind offshore companies 

A prevailing image of the offshore company industry is one of money laundering, gangsters, drug money, and villains wearing white linen suits (that are–somehow–never stained by the cognac they always seem to be drinking). 

In reality, it’s not that sexy (although your particular cognac consumption and linen suit-count may vary). Offshore companies are entities that people create in order to legally take advantage of the global tax market. 

The benefits of an offshore corporation can include protecting assets from impending litigation, shifting the tax burden imposed upon the company, and protecting the company from political unrest and economic instability within the country of the owners. 

Protecting assets from impending litigation 

Frivolous lawsuits, ex-spouses, crazy family members, ex-business partners–money leeches are everywhere and you never know when they’ll come gunning for your assets. Setting up an offshore company can provide increased protection for your assets against the crazy people who want to sue you for them. 

Shifting the tax burden imposed upon the company 

Think of profit taxation as an expense that can be reduced. The global tax market is the legal, lawful system you can use to reduce taxes. Every nation has different policies and budget requirements. That means you can find much lower tax rates offshore than what you currently pay in the western country you call home. 

Let’s be clear here: legally reducing your taxes through an offshore corporation is not the same as trying to evade taxes altogether. The former is legal, the latter is not. If you’re trying to evade taxes, you’re in the wrong place (and also, you’re an idiot). 

What could you do for your business with the money you’d save if your tax rate legally went from a steep 40% to a low tax rate like 5%? If you could greatly reduce taxes on your business this year–what would that mean for the future growth of your business? 

Protecting the company from political unrest 

Political unrest, inflation, and hyperinflation–you can’t control any of these occurrences. But you can insulate yourself against them. Forming an offshore corporation can act as a safeguard against any potential turmoil in your home country. 

Good businesses for starting an offshore company

Intelligent business owners create offshore corporations to protect their hard work, protect their shareholders and maximize the potential profits of their business. 

I say “intelligent” because tax law is a complicated beast. The truth is, offshore companies won’t work for every person and every business. 

There are plenty of businesses that would be well-served to go offshore, including e-commerce or web based businesses, international businesses, consultants and coaches, stock and forex traders, international investors, and those holding intellectual property rights. If you have a location independent business, going offshore could be the biggest no-brainer out there. 

Online businesses are an excellent fit for an offshore corporation because they can operate anywhere. With an offshore company, you can process payments in one country, host your website in another, keep accounting records in a third, and pay low tax in a fourth. 

If you’re a digital nomad or location-independent entrepreneur who earns money while traveling or living overseas, forming an offshore company could make things much easier for you. Onshore incorporation usually means a litany of paperwork and high taxes–but starting an offshore corporation could mean fewer hoops to jump through. 

As I mentioned earlier, inflation or hyperinflation in your home country could drastically reduce the value of your wealth. Having an offshore company with an offshore bank account can keep your business assets insulated against this threat. 

If you own a patent or trademark, registering it in the name of an offshore company can allow you to buy and sell these rights. Having these registered under an offshore company also makes it easier to grant these rights to third parties. 

What type of offshore company should you set up? 

Low taxes, secure business assets, and insulation against unrest at home–starting an offshore corporation is probably sounding pretty good right about now. 

But starting an offshore corporation isn’t as easy as going online and signing up. Speaking with an expert will help you figure out which type of offshore corporation strategy will work best for you. 

Maybe a Limited Company in Hong Kong is the right move for your offshore corporation–foreign profits aren’t taxed and local Hong Kong profits are only taxed at 16.5%. 

A private limited company in the UK or Australia might make sense for you, or even an offshore PLC in Singapore (it won’t get you to 0%, but it will reduce taxes). Each type of offshore company and each jurisdiction have their own unique strengths and appropriate uses. 

And certain offshore company types are only available in specific jurisdictions. For example, if a SARL makes sense for your business, you’ll be setting up in a French-speaking country. (It rarely does make sense, though.) 

Low tax or no tax? 

As tiny tax havens become impossible to deal with, people are actually moving into strategies in places like the US. There are ways for non-residents with LLCs to legally pay no or low tax. Same result, different structure–and another reason why a little expert advice is the right way to go. 

What are the best countries for an offshore company? 

Your goals will determine the best place for setting up an offshore company. 

One business might do well forming an offshore corporation in a country with no accounting or audit requirements and zero tax. 

A slightly larger, more diverse company might be better off going to Hong Kong or Singapore and paying a small amount of tax to get the benefits of a great international reputation. 

A company seeking to raise venture capital funds might go somewhere else entirely. 

While it is often possible to pay zero tax, sometimes it makes sense to pay a little tax. You won’t see me whining that I was able to legally reduce my taxes from 43% to 1%. The savings have put a rather substantial sum back into my pocket. 

For some companies, paying a low tax is better than paying no tax. First, low tax locations often grant you more access to world-class banking, financial opportunities, and merchant services. 

And paying small tax amounts can make the difference between your home country leaving you alone and giving you a hard time. As the global war on tax havens heats up, setting up your offshore corporation in a respected jurisdiction might be the best strategy for you. And in some cases, it might not even cost you anymore. 

Common countries for offshore corporations 

Common traditional offshore jurisdictions include Nevis, Seychelles, Mauritius, the British Virgin Islands, the Cayman Islands, Antigua, Anguilla, and even the Gambia in Africa. 

Other low-tax jurisdictions popular for offshore companies include territories like Gibraltar, as well as low-tax European countries like Ireland, Malta, and even “zero tax” Estonia. 

In Asia, places like Hong Kong and Singapore offer the potential for zero or single-digit tax rates for foreign business, as well as a network of global tax treaties. 

Meanwhile, the Middle East is growing as an offshore hub, with Dubai and Bahrain offering their services to those interested in that region. 

Tax implications of offshore corporations 

We’ve talked a lot about how a big part of forming an offshore company is trying to reduce taxes or eliminate your tax burden entirely. In order to get the best legal results, you need to have the right team in place to manage your business. 

Having the right team in place to manage your business once it is set up does two important things–It makes sure you are 1) in compliance and 2) making the most of all tax benefits. 

Some higher-level offshore jurisdictions will require you to file annual accounts showing your transaction history. These include places like Hong Kong, Singapore, Cyprus, Gibraltar, etc. 

Many traditional offshore jurisdictions may require you to keep books on your own, but they don’t require you to file them. Even if you don’t have to file reports or pay tax offshore, you might be required to declare your interest in any offshore company to the country where you’re a citizen or resident. 

Forming an offshore corporation is about saving money and protecting assets legally, not hiding away or evading taxes. You want to make sure you’re not only aware of all the rules and regulations surrounding your home country and the jurisdiction of your offshore company, but that you’re complying with these rules, too. 

Offshore company requirements for US citizens 

The US government has some tight restrictions on offshore companies. 

As a US citizen, you’ll need to disclose any interest in an offshore corporation on your taxes each year. The same goes for any offshore bank accounts you are an owner of or signer on, in most cases. 

Failure to comply with these rules in the US (or any other western country that requires them) can lead to steep penalties. You can reduce taxes with an offshore corporation, but you won’t benefit from a low tax if you get whacked with penalties and fees. 

Tax deferment is one way for offshore companies to reduce taxes. The system in place lets you defer the taxes that will be imposed upon your company indefinitely. 

You can take the money you’re no longer putting towards taxes and reinvest it in your company. You won’t have to pay these taxes off until you sell the company. 

If you’ve been deferring taxes for a number of years, and using those funds to either continue to build your business or invest otherwise, you will be coming out far ahead of those who never start an offshore company. Try as those homebodies might to reduce taxes, tax-free compound interest from your offshore company will blow their onshore earnings out of the water. 

How to get started setting up an offshore company 

Remember those bad blogs and articles from earlier? Well, offshore corporation misinformation isn’t the only thing you need to be wary of… 

There are plenty of cheap “start an offshore company” service providers advertising on the internet. They offer the lowest price and the best results. Oxymorons. 

Unless you’re an African warlord, you’ll want to steer clear of these service providers. Flouting the law, avoiding and ignoring sound legal and tax advice–If that’s your M.O, the lowest-priced provider will get you set up in no time (I mean, maybe…there are plenty of scams out there). 

And while the process of forming an offshore corporation is straightforward (and can be done in a matter of minutes, in some countries), laying the proper groundwork before and after the official process is important. 

You need to consult with a provider who understands the rules and regulations in your home country, which most so-called “lawyers” on some deserted island have no idea how to handle (since most of them are just deflated volleyballs with painted-on faces). 

The best thing you can do is choose the right representative. Overpaying a little up front is a no-brainer when it comes to your peace of mind down the line. The next step after “reduce taxes” shouldn’t be “reduce jail time.” You’re asking for trouble if you don’t vet these cheap offshore corporation services before buying in. 

What to do after forming your offshore corporation 

Once your offshore company is approved and set up, the next step is to open a bank account (and possibly an offshore merchant account). 

Whether or not you’ll have to physically travel to the bank depends on a few things, including where your company is incorporated, your nationality, and where you intend to bank. 

But don’t let that turn you off. The most important first step towards an offshore corporation is to simply take action. The sooner you get your business set up, the sooner you can enjoy the benefits. And it can be a life-changing process–What other process lets you reduce taxes, insulate your assets from turmoil, and keep greedy hands away from your hard-earned assets? 

Do you want to reduce your taxes? 

Look, if you’re serious about starting an offshore company, I might be able to help. 

Every month I personally help five people build their own Nomad Capitalist life–starting an offshore company, getting a second passport, opening an offshore bank account–whatever they need to build more wealth and live a life with more freedom and success. 

If you’re ready to stop spending your time (and money) reading article after article on offshore companies, you might be ready for my help. Be honest with yourself, here. 

If you’re committed to pursuing the Nomad Capitalist lifestyle, then you should fill out this application. If my team and I decide you’re a good fit, the next step is a phone call with me. 

This isn’t a free consultation, and this isn’t a “sales call” where I try and convince you to do something you don’t want to do. 

I don’t work with you unless you’re already convinced this lifestyle is for you, and you’re 150% committed to making it happen. 

Your phone call will confirm that you’re qualified for my services and that I can help you achieve your goals. When the call checks out, we get to work. 

By the way, at five people a month, I’m not cheap to work with (I don’t need to be, and you shouldn’t need me to be, either). If you’re looking for the best spot to bury your gold, or a soapbox to spout your anarchist rhetoric, or “a week to think it over” then you’re probably in the wrong place, and I can’t help you.

The Complete Guide to Offshore Banking by Bowman Offshore Bank Transfers

This guide covers how you put your money into banks and institutions around the world and is a good primer to the world of offshore banking. 

As a disclaimer, this is not financial advice, nor does this article instruct you in any way. It is simply information that you may take or leave. We are not responsible for any gains or losses, nor are we responsible for what you do with this information. 

Note that with the recent Panama Papers revelation in 2016 that’s taken the world by storm, there’s a LOT more scrutiny on offshore banking and it’s very likely that banking regulations (especially in the EU and North America) will undergo changes to make it more difficult to ‘hide’ money. 

Hiding Your Money Overseas…Offshore Bank Accounts? 

If you are thinking about offshore banking to remain anonymous, then you may be disappointed. For example, if you are looking into a tax scam where you hope to hide money from your own government, then it is very difficult. 

The first reason it is difficult is because the US and Europe have signed deals with independent banks that allows them to look into peoples accounts, which means your secret Swiss or Cuban bank account is not as secret as you thought it was. 

The second reason is because the US and UK (especially) have sophisticated monitoring technology that gives them secret and semi-legal access to computers around the world. This means your secret money is rarely as secret or safe as you would like. 

You should also remember that some companies and banks are not as stable or secure abroad. There are some banks that will take your money and you have no legitimate way of getting it back or punishing those that stole from you. 

When Is It A Good Idea To Put Money Abroad? 

Some people do it because they earn better interest abroad. Some do it because it is safer in foreign banks. Some do it because they want to keep a certain amount in a certain currency, and some do it to hide their money from loved ones or business partners. Some people put money in offshore accounts so they may legally buy things or spend money. For example, some put money into foreign accounts so they may play online poker. Some people travel abroad frequently to the point where it is cheaper to keep money in a certain currency in a certain country. 

A government agency may easily discover the money you have hidden, but even with a good lawyer, there is no way your spouse or business partner will find out where you have hidden your money. 

How Much Do You Have To Deposit? 

There are many offshore banks that will require a substantial first deposit before they allow you to open an account. Even banks that allow their home-turf citizens to open account for free may still demand that you make a $1000+ deposit before opening your account. Do your research into how much deposit you need to pay before you start making plans to open your account. 

How Much Are The Fees? 

They are going to vary from bank to bank and from country to country. There are some banks that will charge you higher fees because you are not living in the country where the bank is located. Standard bank fees are not so much of a worry. Your main concern should be partially hidden fees, such as withdrawal and transaction fees. 

What About Tax In The Offshore Bank’s Country? 

In most cases, you are going to have to pay tax on the interest you make. There are few countries that will allow you to earn interest in their country without paying tax. You need to double and triple check to see if you will need to pay tax, and how much you will need to pay. If a country does not impose tax in the interest you earn, then you have to ask yourself why. Is it because the banks and/or the country is going to go bust at some point soon? 

International Banking Insurance 

Most developed countries have some sort of regulatory body that protects your money with a form of insurance. In the US, it is the FDIC (Deposit Insurance Coverage), and in the UK, it is the FSCS (Financial Services Compensation Scheme). 

If you lose money up to a certain amount through fraud and other things of that nature, there is a good chance they will refund and/or replace your money up to a certain point. The banks and companies that do “not” offer this sort of protection are often able to offer higher rates of interest. 

Can I Use Online Banking? 

There are very few legitimate offshore banks that only operate offline. There are still some, but most offshore banks will have an online banking option. This means you can conduct transactions and check your account online. There are certain restrictions with some countries where you are not allowed to access your bank websites, but most people use VPN (virtual private network) services to get around that. 

For example, if you have an account in China and they won’t let you access your account from the US, you use a VPN service and use a server in China. The bank’s computers think you are browsing from China, so they allow you access to your bank account. 

Legitimate Banks Will Undertake Due Diligence 

This means they will need proof of your identity and where you are getting your money from. If you are looking for a sneaky bank where you are looking to hide money from the government, then they will be less interested in due diligence matters. If a bank is offering you a seemingly unreasonable amount of security and privacy, then be wary. There are many legal factions and many government factions that are unable to find out if you have cash hidden abroad, but most developed countries have aggressive ways of finding out how much money you have sent abroad. 

Do not forget that shady and illegitimate banks are not just for people trying to hide money. Many times, they are used by scammers to collect money from the people they have swindled. This leaves the banks in a very precarious position where sometimes it is better to close down rather than take the heat from the government authorities that are coming after them. These banks are often brass plate banks, where it is in their interest to close down and set up somewhere else rather than face police and government problems and pressure. 

Brass plate banks are banks with very few assets and often with very few staff members. They sometimes only deal with foreigners, and many times, they are not open to the public. They are usually located in offices. 

Ask Directly If the Bank Will Do What You Need 

You can read all the small print, but it is often better to ask questions outright, rather than try to find an answer in their paperwork. The reason is because sometimes they do not mention things in their paperwork. Sometimes they have their own unwritten rules, or their own policies that are not clearly explained or defined in their paperwork. 

For example, you may wish to make purchases in countries that your government has imposed sanctions on. The country in which you have opened your account may not have such sanctions, and so you may feel safe in buying the products. However, the offshore bank may not allow you to make such purchases because “your” country has imposed sanctions and the bank doesn’t want to appear complicit in your breaking of “your” country’s law. 

Another common example is where people set up offshore accounts so they may gamble online. They then discover that even though the offshore bank is in a country where online gambling is legal, they will not allow your bank account to be used for online gambling (even though they allow their other bank users to gamble online). 

Ask their customer service department and/or their advisors if they are able to fulfill your needs before you open your account. Try to get something in writing too, such as a confirmation by email. This is because it is not uncommon for banks to tell you that they allow online gambling with your account, but then decide they do not because they didn’t check which country you live in. Or, they say you are allowed to gamble online, but only allow you to gamble on certain websites and freeze your account when they see deposits made to other gambling companies. 

Canada Is A Good Place to Start 

Have you considered Canada as your first place for an offshore bank. If Canadian banks meet your needs, it is very easy to get an account. You can take a trip up there with your paperwork and open an account by walking into a branch. Usually, it is as easy as that if you are from the US or Europe. Check to see what information and documents you need to take, and walk into a branch to open an account. 

There are numerous other European countries where it is just as easy to open an offshore account, but Canada is closer, and their banks are very accustomed to opening accounts for people from the US. Just be sure to get an appointment prior to making your trip because some banks will insist on an appointment. 

Opening Your Account Online 

There are a great many banks that will allow you to open an account online, but you have to be very careful when you do it. For example, you may take the example above and decide to open an account in Canada. You look it up on the Internet and see that it says, “Open an account here” or something similar. So, you click to open your account and it goes through, and all seems okay…right? 

Wrong. Some banks will require a personal visit in order to open an account. Some banks (legitimate ones) will need to see you in person to open an account. If they allow you to open one online, it may be that you have actually opened an account with a US branch or with a partner of the bank (which is not what you wanted). 

Some banks will allow you to partially open your account online. They will then ask for a visit at some point, or they will send you applications in the mail or via email. You may have to photocopy or scan certain documents, and provide access to your information in your own country, and the process can take between two weeks and a month. 

Credit Cards and Your Credit Rating 

Your credit rating is a tricky business. Sometimes it is all about your credit rating in the country where you have opened your account, and sometimes your credit rating appears to merge with that of your own country. As for credit cards, those too are a trick subject when it comes to your credit rating. Usually, they have a positive effect on your credit rating if you pay them off quickly. However, if you gamble with them, they may be viewed as irregular use and may affect your ability to get further credit. This applies to credit cards you get domestically and overseas. There are also many banks that will not allow you to gamble with the money from your credit card, and some may freeze your account if they see you making deposits to gambling websites with your credit card. 

Banks That Demand a Large Turnover 

There are some banks that will allow you to open an account on the understanding that your account wills turnover a certain amount of money every term (usually every year). If the amount of turnover they ask for is a large amount, it is highly recommended that you open the account in person. It is mostly a security issue, since you want to be as sure as possible that the bank is real, and that you are passing your information (and eventually your money) over to the right people. 

Do I Need A Minimum Balance? 

There are some banks that will require you to maintain a minimum balance in your account. If you do not, then you are charged either a higher fee than your usual fee, or a cumulative charge fee (the same as if you overdraw your bank balance). The bank may offer free overseas accounts, but start charging you a fee if you do not maintain a certain set of minimum balances.

How to move money offshore by Bowman Offshore Bank Transfers

Having an offshore bank account — or two… or three — is an important step in planting flags around the world. As we often discuss, the actual opening of an account is relatively easy, and you don’t need a lot of money.

In my guide, The Best Offshore Banks, we discuss 55 banks that will open offshore accounts for anyone with as little as $500 to deposit. In some cases, you won’t even have to leave your living room, as a number of Caribbean and even European banks allow for remote account opening.

However, the bigger challenge for offshore banking newbies is how to move money offshore; precisely, how to get your onshore funds into your new offshore account.

To make things clear, this article is NOT about how to hide money offshore. While the media loves to do gotcha pieces about how easy it is to move money overseas, the reality is that playing by the rules is a lot better way to go.

In the era of FATCA, mutual legal assistance policies among governments, and offshore bank account reporting requirements, you don’t want to play hide and seek. When used legally, offshore bank accounts are an excellent asset protection tool to protect you from bankrupt governments.

If you don’t have an offshore bank account yet, you can learn more about how to get one here. However, if you do have an account but are confused about how to move money into it, here are several strategies for funding your offshore bank account.

International wire transfer

The most common and straightforward method is to simply wire the money from your onshore account (or your existing offshore account) to the new offshore account. Wire transfers work well because there is often no limit to the amount you can send, making it the most practical option for large transfers.

In some countries, sending a wire transfer is extremely simple and affordable. My Hong Kong bank charges about $11 to send money almost anywhere. The only problem is when the transfer gets rejected for some reason by the receiving party and I’m charged a large return fee. This shouldn’t be an issue, however, if you’re wiring money to yourself.

The downside to sending a wire is that it could take a while to arrive in some smaller banking jurisdictions, like Belize, that involve “correspondent banks” that are often in the US or Germany.

In countries where bankers tend to freak out about international wire transfers (see: the United States), you may need to go into a branch to initiate the wire. I know people who have had their US bank accounts restricted for daring to send an international wire transfer to themselves, so be careful. Then again, isn’t that why you wanted to move money offshore to begin with?

Transferwise

If you want to transfer money online, but don’t want to send a wire transfer, new services like Transferwise can help. (For a full review of the different services, read our article on the best ways to transfer money internationally coming out in September 2016.)

Transferwise is based on a peer-to-peer system that cuts out middleman banks and allegedly reduces the fees of moving money overseas. I haven’t found this to be the case; the cost to send $5,000 to a foreign bank account was as much as $50; even crappy US banks charge less to send larger wires.

In reality, services like Transferwise are a better replacement for expensive money senders like Western Union or Moneygram, not for replacing wire transfers. However, Transferwise is easier to use than a wire if your domestic bank dislikes your moving money offshore, since you send the money domestically and their service handles the rest.

Take cash from an ATM

It sounds too easy, but among the easiest ways to move money offshore is merely to take it out offshore to begin with. Sometimes, the simplest solutions are the best.

In The Best Offshore Banks, we discuss a number of high quality banks that require $2,000, $1,000, or even less in their foreign currency equivalent to open. The only catch with some of these banks is that — unlike accounts that allow you to wire money in later — you need to deposit the money when you open the account.

These banks don’t allow remote account opening, but you can literally use their ATM to take out the amount of the minimum deposit. If you’re domestic bank ATM card imposes a limit on daily withdrawals (usually $400 or $500 for US banks), you may need to plan one day ahead so you can max out the limit on two different days in order to get enough cash.

Bitcoin and cryptocurrencies

Bitcoin has been put forward as the possible “ultimate offshore bank account” due to its ability to store money securely in the cloud. Bitcoin guru Stephanie Murphy spoke extensively about the privacy benefits of using Bitcoin at two of my Passport to Freedom conferences.

However, Bitcoin can also be used as a mechanism to transfer funds offshore. If you own Bitcoin in your home country, you can access them in your destination country by using services like Local Bitcoins, or by using one of the growing numbers of platforms that connects directly to a bank account.

Coinapult, for instance, allows you to store Bitcoins and freeze their value to the value of a foreign currency, gold, or silver, reducing volatility until you want to move them into your foreign bank account. Coinbase and other services allow transfers to connected bank accounts, although many offshore jurisdictions are not yet supported.

Sell your gold and silver

If you own gold or silver offshore, such as in a vault here in Singapore, you can often sell those precious metals and have funds wired into your local bank account. Singapore is an excellent option for this as gold storage here is highly secure and Singapore bank accounts are also excellent.

If you already own gold and silver, there are ways to ship it overseas (again, Singapore is a good option) and later sell it for cash. Transporting gold on your person can be risky since customs forms are required in many cases. You should also make sure you follow all rules regarding sales of precious metals, capital gains taxes and other reporting requirements in your home country. Consult a tax professional for help.

If you’re wondering why “put money in a suitcase and show up in the Virgin Islands” isn’t on the list, it’s because almost everyone on earth — save those in Hong Kong and a few other countries — has to declare cash being taken out of the country.

While transporting any amount of cash is legal in most countries, most law-abiding citizens don’t carry large amounts of cash over borders. Those who do often make customs officials suspicious enough to go so far as to confiscate your cash. On top of the legal hassles, most banks don’t want huge piles of cash being deposited due to money laundering concerns; many banks now charge a cash deposit fee for the privilege.