Would you like to find out the names of the countries with the best bank secrecy solutions? Bank secrecy is an important topic these days when more and more people are concerned about their privacy. Of course, they are also worried about the evergrowing involvement of national governments in the banking sector.
In the past, bank secrecy was a topic which was discussed only between individuals that had very big financial assets. Today, it seems that almost all categories of people can benefit from something like this. The good thing is that there are still many countries around the world where your bank account info can be kept confidential.
- Learn what are the best countries in the world when it comes to bank secrecy
- Find out how to open and manage a bank account there
- Learn more about these countries in general
Contrary to popular belief, the countries with the best bank secrecy are not necessarily countries with weak economies and unstable economy. There are many countries where foreigners can open bank accounts and transfer money easily. In order to find out more about these places check our list of 12 countries with best bank secrecy.
1. Switzerland
Location: Europe
GDP: 607 billion Euros
Number of banks: Over 400
A list of countries where you can expect a high level of bank secrecy without Switzerland is an incomplete list. As a matter of fact, Switzerland is one of the countries that cross the minds of people when they are talking about banking secrets, financial safety, and other similar things.
Located in the heart of Europe, this country has one of the most powerful economies on this continent. They’ve been known as a neutral country for centuries which is another big advantage for those looking for a secure place to keep their money safe.
What is interesting is that bank secrecy in this country has a tradition that is over 300 years old. Over this period of time, the Swiss banking system has proven to be bulletproof although there were many unpleasant events that were going on around this country. For instance, during World War 2, this country was neutral and they have managed to protect the assets of both European Jews and Nazi Germans at the same time. We should also mention that Switzerland is not part of the European Union which means that they don’t have to follow the rules of this supranational institution.
Of course, Switzerland has signed a few bilateral and multilateral agreements with other countries which allow the nationals of other countries including the UK and Germany to open bank accounts in Switzerland without providing information to their countries. What’s interesting is that more than 25% of all cross-border assets in the world are found in this country. All in all, this is a well-known tax haven which promises an ultimate level of bank secrecy.
2. Seychelles
Location: Africa
GDP: Almost 1.5 billion Euros
Number of banks: Over 10 banks with many branches
Unlike other well-established countries in terms of bank secrecy, Seychelles is a relatively new destination for people who are looking for the best bank secrecy. Of course, the banking sector is not the main sector in the industry of this country where tourism has the main role. However, this also gives people a nice chance to use their next holiday to have fun and enjoy the sandy beaches and take care of their assets.
Seychelles is a country which supports the right to privacy of both domestic and foreign nationals. This is the main reason why in the last three decades many company and corporation owners have decided to move some of their ventures to this country. Opening a bank account as a foreign citizen as well as launching an offshore corporation in Seychelles is a simple task. The entire procedure can be completed in a day or two.
What many people like about it is the fact that the authorities are not keen on reporting interest income to other national tax authorities. Yet, they have signed agreements with governments around the globe. This means that they have found a way to make a balance that can benefit both their banking sector and foreign nationals worried about their privacy and anonymity without breaking the balance in the financial world.
What makes Seychelles a little bit different than other countries on this list like Switzerland for example, is the fact that a huge number of Seychelles residents are not using conventional banking services. The downside is that the local economy doesn’t have access to loans and their banking sector is used primarily for transfers of money. The positive thing here is that their GDP is constantly growing and that the average people are in a much better situation than before.
3. Luxembourg
Location: Europe
GDP: 62 billion Euros
Number of banks: Almost 150
As we said at the beginning of this guide, the best bank secrecy options you have can be found on different continents around the world and Europe is not an exception. As a matter of fact, Luxembourg is considered to be one of the best solutions you have if you want to avoid unnecessary attention when it comes to your financial ventures.
There’s no doubt that the banks and authorities in Luxembourg respect the secrecy of their clients. What’s unique here is that breaking this confidence and sharing information that is supposed to be kept secret can lead to a long time in prison.In 2014, the banking sector of this small European country was shaken by a scandal which involved sharing information like this. The creators of this scandal were sentenced to jail.
There are many countries that are criticizing the approach used by Luxembourg and accuse this country that it provides refuge for individuals and companies that are trying to avoid paying taxes, but so far the laws in this country have remained the same which means that Luxembourg is still an excellent place for bank secrecy. Furthermore, Luxembourg is a hub for the Eurozone and one of the financial centers of Europe with almost 150 banks where more than 250 billion Euros are kept in the safe private banking sector. With all these things in mind, one can freely say that Luxembourg is a country worth considering when selecting an offshore tax haven.
4. Cayman Islands
Location: North America
GDP: 3.1 billion Euros
Number of banks: Almost 50 branches of well-known banks from all over the world
When we are discussing bank secrecy and offshore opportunities, we can’t avoid the Cayman Islands. For many people, these islands have become the synonym of offshore banking and tax haven. Located in North America, this is actually a UK dominion.
This means that although this country might seem like an exotic financial destination, there’s extra security since this is a UK territory. Yet, the islands have their own political and financial rules. So, it’s not an exaggeration to say that this territory has the two best things for international business people – security and liberal laws.
The financial regulations are loose on these islands and there is a wide range of tax-free offers that can attract all kinds of people. More than 90,000 companies are headquartered here and thousands of companies and individuals have bank accounts. With a bank account in a Cayman Islands bank, you can expect several layers of protection related to your identity and financial transactions.
5. Samoa
Location: Oceania
GDP: 765 million Euros
Number of banks: –
Our next stop on the list of countries with best bank secrecy is Samoa. This island country located in Oceania has one of the most liberal legal solutions for the financial sector of their country. To be honest, Samoa is not a very big player compared to Luxembourg, Switzerland or even to the Cayman Islands. However, this doesn’t make this country an option you should avoid.
While it’s true that there are many disputes between other countries and Samoa about their unwillingness to share personal information about foreign citizens that have bank accounts there as well as about international companies, most private and business entities find these things attractive. So, in case you are worried about your privacy, you can’t go wrong with Samoa. Yet, one should be careful because the laws here can be changed fast and there’s no international power that guarantees the stability of the country.
6. St. Lucia
Location: North America
GDP: 1.5 billion Euros
Number of banks: 5 banks with a few branches
The small island nation which is part of the Caribbean is a sovereign country for a few decades now. Many people know this place as an excellent holiday destination, but in the recent period more and more people from Europe, Asia, and North America are using St. Lucia as a place where they can find high level of bank secrecy.
In St. Lucia, the authorities are not asking offshore companies about their background and financial reports issued in other countries. They also don’t have deals for information exchange with many Western countries. Even though they have signed a few agreements in the last few years, we will still have to wait to see whether they will cooperate with tax authorities from other countries. Overall, St. Lucia is another exotic country which deserves to be on a list of countries with best bank secrecy.
7. The United States of America
Location: North America
GDP: 18.8 trillion Euros
Number of banks: over 6500 banks
Some of you might be surprised, but numerous experts can confirm that the United States of America is one of the countries with the best bank secrecy. This is also the country with the highest GDP for many years now which is why it’s considered to be a safe destination for those who want to put their money abroad.
The US has a huge offshore financial sector and it’s known as a business-oriented country where businesses are left to thrive. In addition, unlike some countries, the rule of law is respected here and they have a great selection of tax-free and secrecy incentives that are designed for non-US residents. On top of that, some of the states have their own specific rules that make them even more attractive.
While we are talking about the United States, we should also mention that this is one of the rare countries which is not controlled by foreign secrecy jurisdictions (even supranational jurisdictions). In other words, if a foreign country requests information about your bank account in the United States, they have to present detailed evidence which may (or may not) encourage their authorities to share information about your financial operations in the US. All in all, this is a country with a very high level of bank secrecy.
8. Bahrain
Location: Asia
GDP: 31 billion Euros
Number of banks: over 110
In the past, Bahrain was a country with huge oil reserves. This precious resource has helped the Gulf nation to become richer and stronger, but the truth is that their reserves of oil are coming to an end. The clever leadership of this country has been preparing for this situation for a long time and that’s why they have decided to attract foreigners with the help of their liberal banking sector.
Of course, this country has a tradition as a trading hub too which has helped offshore investments. Bahrain has been a good host for many businesses and banks from all over the world in the last two decades. One-quarter of their GDP comes from the financial sector. So, it makes sense that this place has laws and regulations related to finance and the good thing is that all the participants in this sector respect these regulations and laws which are quite liberal.
Obviously, this includes a high level of bank secrecy, especially for foreign nationals. It’s also good to highlight the fact that Bahrain doesn’t have a corporate income tax, capital gains tax or personal income tax. Additionally, their authorities have signed agreements on tax with many developing countries around the globe.
9. Hong Kong
Location: Asia
GDP: 305 billion Euros
Number of banks: over 150 banks
When Hong Kong was reunited with China in 1997, many people were worried about the financial future of this well-known financial center which was administered by the UK for 150 years. But, it turned out that there was nothing to worry about because Hong Kong has kept growing and it’s still growing even today.
Today, Hong Kong is one of the favorite spots for those who are looking for offshore havens and individuals and businesses interested in bank secrecy. What makes Hong Kong a unique country when we are talking about bank secrecy and finance, in general, is the specific location of this place. Even though it’s part of China (a country with a fast-growing economy), it also has a special status which makes it available to foreign nationals.
We should also mention that Hong Kong doesn’t force bank users to keep funds in Chinese yuan. So, you are free to open a bank account there and keep dollars, pounds, Euros, etc. In addition, foreign nationals can also open saving accounts and hold their savings in foreign currencies and even in gold.
In addition to the high level of bank secrecy, this country and its banking sector also provide reasonable interest rates and have tax laws that are considered one of the best in the world at least when it comes to foreign nationals. You can expect to pay income tax only on local income. On the other hand, there are no taxes on deposit interests, dividends or capital gains.
10. Panama
Location: Central America
GDP: 55.3 billion Euros
Number of banks: around 80 banks including international banks
There are a few places in Central America where you can find tax havens and Panama is definitely among them. Of course, this is also a country with the best bank secrecy in this region. People from all over the world, especially from the United States have been using Panama to avoid taxes since the beginning of the 20th century.
Many countries around the world are criticizing Panama for their unwillingness to cooperate with their tax authorities and the same goes for the most famous international financial organizations. Panama has accepted some of these critics and they have promised to make changes, but they are doing this carefully and without hurting the interests of their foreign investors.
It’s interesting that Panama has one of the most sophisticated legislation related to financial privacy and bank secrecy. This is one of the rare countries in the world where the full names of shareholders present in Panama-based corporations and foundations don’t have to be registered publicly. Foreigners don’t have to report money transfers that go into Panama and out of Panama.
Furthermore, Panama-based banks cannot share information related to offshore bank accounts. Their strict bank secrecy regulations allow banks to share information only in specific situations – when the investigations are initiated by the authorities of this country.
11. Singapore
Location: Asia
GDP: 289 billion Euros
Number of banks: over 100 banks
Did you know that this small Asian country has a significant share (5%) of the international market for offshore financial services? The economic expansion of Asian countries has attracted many foreign investors and asset managers to Singapore, a country with very liberal laws. Today, there are around 40 offshore banks in Singapore.
In the past, there were a few scandals that have involved dirty money laundering in Singapore and this led to the introduction of stricter laws, but compared to the vast majority of countries these laws are still quite liberal. Unlike Hong Kong, Singapore is more independent. This is also one of the countries that have the lowest taxes in the world. Just like in the case of Hong Kong, account holders (foreign nationals) can hold funds in a wide range of currencies and even in gold.
As previously mentioned, there are efforts to make this sector stricter than before, but since the power of the banking sector in this place is high, it is very unlikely that significant changes will be introduced in the near future meaning that keeping your funds in Singapore is an excellent option if you don’t want your country’s government to analyze your assets.
12. Belize
Location: Central America
GDP: 1.64 billion Euros
Number of banks: 5 banks (offshore banks are not included)
For many decades, Panama was the only tax haven in Central America used by foreigners. However, starting from the 1990s, there’s a new player in this region which seems to be attracting more and more individuals and businesses that are looking for best bank secrecy terms in foreign countries.
The financial industry of this country is showing positive results and growth every year. International investors and asset managers, as well as ordinary people looking for a way to keep their privacy, can choose from a wide array of banking services and financial products in Belize. It’s good to know that most of the foreign users of these services come from North America. One of the reasons for that is the use of common law instead of continental law in this country.
Opening a bank account in Belize is very easy and you can finish this procedure even online. The authorities of this Central American country are offering a selection of bank secrecy services and features that are here to protect sensitive information provided by foreign nationals and organizations. Form nominee representatives and virtually no taxes to the use of bearer shares and no need for audits – this country promises an exceptional financial experience.
While it’s true that foreign assets invested in this country can be accessed by the local authorities, third parties that might be interested in this kind of information will have a lot of trouble obtaining this information. Overall, this is one of the countries that have the best bank secrecy and other financial laws that can bring many benefits to foreign entities.
